Stockholders Want High-Risk, Common Sense Disagrees

Watching Corporation the second time around made me wince a little when I read this article, where REIT holders are wincing at what now seems to be the dumbest real estate/business structure ever: owning what you have. Similar corporations like Walgreens and Sears are keeping stockholders happy with an apparently successful structure, where they own about 20% of their real estate. It seems that owning your big-box store just isn’t the investment it used to be.

Target seems to be ready to restructure the Target REIT to make it a little more er, profitable for stockholders. Something that’s tough to do these days, regardless of the sinking pit that commercial real estate is in. “Lease” is the new operative word, and everyone is jumping on board.

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