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Department Store Chain Dillard’s to form REIT

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Department store chain Dillard’s plans to capitalize on its valuable real estate holdings, separating them from its retail operations and putting them into a separate real estate investment trust.

The Arkansas-based retailer told the SEC it plans to form a wholly owned REIT to hold some of the 46.4 million square feet of property it owns. Dillards said the move would make it easier for the chain to tap the capital markets for financing. The REIT will own the properties, and Dillard’s will triple-net-lease the properties from the REIT. The move is an attempt to monetize the chain’s real estate assets, which include about 315 anchor stores at various suburban malls and open-air centers.

Compiled by the staff of Shopping Centers Today. © January 20, 2011 International Council of Shopping Centers.

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