An activist shareholder's plan for Target Corp. to spin off its land holdings into a REIT is ill-timed, according to some observers. "Target is a single-A credit, and if they did this, it looks like they'd be downgraded to a triple-B, and I think that would change the valuation dramatically of what people would be willing to pay," said Matt Kirschner, an investment analyst at New York-based Cohen & Steers. The proposal could, however, be attractive for Target and other retailers when the economy recovers.

Related Summaries