https://seekingalpha.com/article/4336448-macys-time-for-jeff-gennette-to-sell-herald-square
In today's piece, I will explain why Jeff Gennette and Macy's board should put Herald Square in play. As of Friday's close, at $4.81 per share, Macy's market capitalization was just shy of $1.5 billion. With fiscal year ending 2019 net debt of $3.6 billion, down my $7 billion ten years prior (see fiscal year ending 2009) I might add, we are talking about an enterprise value of only $5.1 billion. Keep in mind that Macy's FY 2019 Adjusted EBITDA was $2.336 billion. I know the world has dramatically changed and FY 2020 Adjusted EBITDA will look nothing like FY 2019, as Macy's entire store fleet has been closed since mid-March 2020 and most of its 130,000 employees have been furloughed. However, Macy's will not survive beyond 2021 and investors need to think about Macy's future state and normalized EBITDA power in 2021. Given that Herald Square is such a unique and iconic piece or real estate, now is the time to right time to pivot and monetize this crown jewel. Back in August 2015, the WSJ author, Liam Pleven, estimated Herald's Square value at $3 billion to $4 billion. What it is worth today is anyone's guess, but until Macy's tries to actively shop it, we will never know.