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Dillard’s Targeted by Snow Park Seeking to Unlock Property Value

  • Snow Park says company’s real estate worth over $200 a share
  • Brick-and-mortar retailers are popular targets for activists

Activist investor Snow Park Capital Partners has built a position in department-store chain Dillard’s Inc. and is planning to push for changes at the company, including unlocking the value of its real estate portfolio.

“Dillard’s is essentially an underleveraged real estate company that is masquerading as a low productivity retailer,” Snow Park Managing Partner Jeffrey Pierce said in an email.

A quarter of Dillard’s real estate is located in top-tier malls, which typically fetch about $650 per square foot in sales, according to Pierce.

Shares in the Little Rock, Arkansas-based company rose 5.2 percent in early New York trading to $83 apiece.

“We believe the value of Dillard’s vast real estate holdings is well north of $200 per share. With an average sales per square foot of approximately $125, it’s fair to say that Dillard’s may not be getting the highest and best use for some or all of their owned space,” Pierce said. “In fact, our...