Target Managment Very Much Against REIT Idea
As a Target shareholder, I got a letter in the mail yesterday from Target's management that was very much against Bill Ackerman's proposed Target REIT. They didn't go into much detail about the idea other than saying that the REIT idea was risky and would threaten long-term shareholder value. Target’s management said the land under the stores provided value and leverage to improve the stores to protect their brand.
I would counter that a Target REIT would also want to increase the value of its sites as any business would want to protect and increase the value of its assets. A Target REIT could focus on the ownership of the land and increase long-term shareholder value by consistently rewarding shareholders with a high-yielding dividend check. Target retail could then focus on retailing and its credit card business.
Share It: 
Bookmark It: 
Apr.14.2009. 20:32
This article hasn't been commented yet.
* = required field