Macy’s Enters Strategic Alliance With Brookfield To Monetize Real Estate Assets

Macy's

After unloading five stores to mall operator General Growth Properties earlier this month, Macy’s has entered a strategic deal with Brookfield Asset Management to evaluate the value of its real estate assets.

Under the deal, Brookfield will have exclusive rights to Macy’s portfolio for up to two years, creating a “pre-development” plan for roughly 50 stores—much of which are either owned or ground-leased in malls not owned by major mall operators, the retailer announced in a release today.

Macy's reported disappointing Q3 earnings this morning that missed Wall Street expectations, with net income dropping to $17M, or 5 cents a share, from $118M, or 36 cents a share, a year ago. In addition, the retailer said it will sell its 248k SF Union Square men’s store in San Francisco for $250M, and its downtown Portland store for $54M.

Stocks dropped 0.7% following Macy’s earnings release before recovering upon news of its Brookfield deal, Retail Dive reports.

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