Sears REIT Soars After Revealing Warren Buffett's a Shareholder
When Buffett reported his 2 million shares in the REIT, Seritage had its biggest gain since July—a 17% increase from $34.52 to $41.35, pushing the market cap past $1B.
Sandler O’Neill & Partners analyst Alexander Goldfarb says Seritage is playing it smart by "taking a thoughtful approach" and making "sure the market isn't flooded with a lot of inventory which could depress values.”
This is not the first major foray into REITs for the world's third-wealthiest man. In 2000, Buffett disclosed a 5.1% stake in Aegis Realty, which owned shopping centers and other property in 15 states.
Seritage Growth Properties refused to comment on the news but a spokesperson told Bloomberg Sears wants to continue to systemically unlock the value of its real estate assets. [Bloomberg]