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Update in BR Business Report on Dillard's Cortana Holdout
Posted on 6/15/20 at 11:50 am
Posted on 6/15/20 at 11:50 am
As expected, Dillard's doesn't need to sell and they own most of their stores outright. Given these factors, Amazon will have to up their ante.
LINK
LINK
quote:
While other retail chains have been hammered in recent years by the rise of e-commerce, Dillard’s has remained relatively strong, largely because of its vast real estate holdings. As of January, Dillard’s owned 244 of its 285 stores, which includes 30 discount outlets, around the country, according to the company filings with the Securities and Exchange Commission.
In recent years, those assets have attracted large institutional investors, according to securities analysts. In fact, more than 80% of the company’s class A stock is owned by just a handful of large hedge funds, SEC filings show.
“Hedge fund investors get into Dillard’s all the time because they know they have that real estate on their balance sheet,” says Jen Redding, a securities analyst with Wedbush Securities. “They’ll buy for that reason and hope the real estate will go up.”
quote:
Recent sales suggest the company commands top dollar for its real estate, even in tertiary markets, some smaller than Baton Rouge.
In February 2019, a Dillard’s subsidiary sold its store at the Southern Park Mall in Boardman, Ohio, for $8.92 million.
In July 2019, the company sold a clearance store, like the one it operates at Cortana, in Boynton Beach, Florida, for $4.5 million.
In a situation even more similar to that of Cortana, Dillard’s was reportedly the last holdout in a deal to redevelop the shuttered Fiesta Mall in Mesa, Arizona. In January, the company finally sold the discount store it had continued to operate at the former mall for a whopping $7 million.
9
Posted on 6/15/20 at 11:55 am to Golfer
Dillards:
Posted on 6/15/20 at 11:56 am to Golfer
I hope they don't se. They are giving away golf shirts in that place.
Posted on 6/15/20 at 11:58 am to The Johnny Lawrence
Good business strategy. If they are the last hold out, they will get the most for their property. I approve.
Posted on 6/15/20 at 12:00 pm to Golfer
That’s what I’ve read about other companies like McDonald’s and mattress wearhouse, they are more of a real estate company and own the properties rather than lease
Posted on 6/15/20 at 12:09 pm to DaBeerz
That site is not going up in value with that mall empty.
Lets et it sold and a 1000 jobs starting at $15.00 an hour please.
Lets et it sold and a 1000 jobs starting at $15.00 an hour please.
Posted on 6/15/20 at 12:21 pm to Golfer
There is more to the Dillards success story than just owning their own real estate. Sears owned all of its real estate as well. It was the only way they skated by the last 10 years or so before they cratered.
Posted on 6/15/20 at 12:31 pm to the4thgen
quote:
There is more to the Dillards success story than just owning their own real estate. Sears owned all of its real estate as well. It was the only way they skated by the last 10 years or so before they cratered.
Okay?
Posted on 6/15/20 at 12:33 pm to Golfer
They’ll sell eventually. I do hope they relocate nearby. I’ve been able to buy some nice clothes that require me to make a serious financial decision.
Posted on 6/15/20 at 12:34 pm to Golfer
So, you’re saying there’s a chance?
Posted on 6/15/20 at 12:36 pm to DeafJam73
Yeah...They could look at that Havertys or the Sams Club. Havertys is smaller...but might be good storefront visibility.
Posted on 6/15/20 at 1:10 pm to Golfer
Dillard's on Cortana is still open ?
Posted on 6/15/20 at 1:24 pm to Golfer
Amazon has other options in the area, assuming they are commuted to having infrastructure in BR region. I’d be careful to scare off your offramp, might not come again until it’s value is halved. I guess as long as it works in Dillard’s pro forma they will hold out
Posted on 6/15/20 at 1:28 pm to Golfer
quote:
In a situation even more similar to that of Cortana, Dillard’s was reportedly the last holdout in a deal to redevelop the shuttered Fiesta Mall in Mesa, Arizona. In January, the company finally sold the discount store it had continued to operate at the former mall for a whopping $7 million.
That’s crazy. I used to live about a mile and a half from that mall. It was in about as busy and booming part of town as you could hope for, right off the 60...and it had tons of good stores and was always really, really busy. Less than 20 years later and it’s dead. Hard to believe. It was a really cool mall.
Posted on 6/15/20 at 1:41 pm to Boo Krewe
quote:
Dillard's on Cortana is still open ?
My wife drug me there yesterday after we went to Lowes... I walked out with 2 pairs of Tommy Bahama shorts for 27 dollars. 180 total regular price
That place is legit
Posted on 6/15/20 at 2:56 pm to LSUcdro
Damm. That's unreal deal.
Posted on 6/15/20 at 3:28 pm to the4thgen
quote:
Sears owned all of its real estate as well. It was the only way they skated by the last 10 years or so before they cratered.
Here's the thing.
Sears, when they started having financial problems 10-15 years ago, started selling their real estate, and leasing it back.
That gave them short term cash, but it never fixed the problems that were causing them to have financial problems in the first place.
Plus, they entered into all these leases, which dramatically increased their expense side, all the while, never fixing the problems on their income. They didn't re-invest the sale proceeds into the company, they just used it to cover up their cash burn.
Dillard's doesn't have the same basic financial issues that Sears started having. Thus, Dillard's doesn't need to raise cash. If Dillard's did start having financial issues, and started selling buildings and leasing back, they would end up cratering as well.
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