Greenlight’s Einhorn takes a piece of Macy’s

Macy’s real estate portfolio —valued at $21 billion — is once again proving to be more attractive than its $12 billion market capital.

David Einhorn is the latest activist investor to take a stake in the venerable retailer because he thinks the timing might be right for Macy’s to finally tap into its valuable bricks and mortar assets as other investors have demanded.

Einhorn’s Greenlight Capital wrote a letter to its investors on Tuesday disclosing its stake in Macy’s in which it said “it wouldn’t surprise us if a private equity firm teamed up with a REIT to buy the company and unlock the value privately.”

In July, Starboard Capital disclosed its stake in Macy’s and said it was prepared to fight the retailer if it doesn’t spin off its sizable real estate holdings, worth an estimated $21 billion, according to Starboard.

Macy’s declined to comment on Einhorn’s investment, but it has said that it is “evaluating all options” for its real estate portfolio. It operates some 900 stores mostly under the Macy’s and Bloomingdales flags.

“Macy’s stock is down 50 percent over the last six months, and when there is that much pressure on a stock, the board is more likely to listen to alternative ideas,” said ITG Investment Research analyst, John Tomlinson, adding that Greenlight Capital’s letter “doesn’t sound like it’s banking on fundamental improvements in Macy’s business.”

Greenlight Capital declined to comment.

The New York-based retailer’s stock price closed up 2.2 percent, at $38.76, on the news of Einhorn’s interest.