Rouse(RSE) began trading on a when issued basis today in anticipation of its spin off next month from General Growth Properties(GGP). The stock, which opened at 14, moved steadily downward and closed the day at 12 on 55,819 shares traded. This represents a significant discount to book value and is below the $15/share, $200 million post-spin rights offering which Brookfield Asset Management has agreed to backstop.
Disclosure: The author holds no position in any stock mentioned
My quick count has 14 properties with SEARS as an anchor. Not a positive till we see how that impacts the co.
Do you have an estimate of book and/or the yield when it begins regular trading?
Great posts and enjoy your blog so thanks for your hard work.
With the current state of Sears, it might be more valuable to have space empty then to have them anchor it. My guess is the Sears closings are more likely to be off-mall locations, and that many Kmarts will be involved, but we’ll see.
actually 24 SEARS anchors per the form 10.
I just posted a map and spreadsheet of the first 79 announced closings here: http://n9n.us/1mo I’ll try to see how many are Rouse properties, let me know if you do first.
Sears Holdings recently posted a list of 79 stores they plan to close, and as far as I can tell there is no overlap with RSE properties. The list is not complete (they plan to close 100 to 120 stores in total), but it should provide some comfort.
http://www.searsmedia.com/tools/122711_close.htm
I’m happy to see a pickup in blog posts over the past week. Keep up the good work.
Thanks Matt! Trying to pick up the pace of posting. I posted a spreadsheet version of the store closing list as well as a map of the stores at http://www.inelegantinvestor.com