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Bed Bath & Beyond’s stock gains on real estate deal

Shares of Bed Bath & Beyond (NASDAQ: BBBY) were up around 3% in midday trade after the company announced the completion of a sale-leaseback transaction with an affiliate of Oak Street Real Estate Capital. The deal generated over $250 million in proceeds, which the company plans to reinvest in its business operations and use for […]

January 6, 2020 2 min read
Market News

Shares of Bed Bath & Beyond (NASDAQ: BBBY) were up around 3% in midday trade after the company announced the completion of a sale-leaseback transaction with an affiliate of Oak Street Real Estate Capital. The deal generated over $250 million in proceeds, which the company plans to reinvest in its business operations and use for […]

· January 6, 2020

Shares of Bed Bath & Beyond (NASDAQ: BBBY) were up around 3% in midday trade after the company announced the completion of a sale-leaseback transaction with an affiliate of Oak Street Real Estate Capital.

The deal generated over $250 million in proceeds, which the
company plans to reinvest in its business operations and use for share
repurchases and pay off debt. The sale includes real estate of around 2.1
million square feet.

CEO Mark Tritton stated, “This marks the
first step toward unlocking valuable capital in our business that can be put to
work to amplify our plans to build a stronger, more efficient foundation to
support revenue growth, financial stability and enhance shareholder value.”

Bed Bath & Beyond is
reviewing its asset portfolio with the help of its financial advisors to find
opportunities to enhance shareholder value. This includes the evaluation of
some of the company’s remaining real estate.

The company has been struggling with tough competition in the retail sector and the lack of an optimal pricing strategy has hurt its digital sales. The retailer will report its third quarter 2019 results on Wednesday. Analysts have projected declines in both the top and bottom line numbers.

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For fiscal 2019, the company expects earnings in the range of $2.08-2.13 per share and sales to be around $11.4 billion. Bed Bath & Beyond’s shares have gained 37% in the past 12 months.

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