Sears Holdings (SHLD) "Base Case" Is Liquidation: Evercore

Sears Holdings’ remaining real estate assets are worth $3.3 billion based on the prices of the recent HBC and Seritage transactions, according to analysts at Evercore ISI.

In a note to investors, Evercore ISI analysts Greg Melich and his team said they conducted a “bottoms up” real estate analysis on the locations of Sears Holdings. The analysts rated the each of the locations to determine the value of the company’s remaining real estate assets.

[Sum-of-the-parts analysis on Sears real estate

Sears Holdings’ value is $24 per share including the Seritage cash based on the sum-of-the-parts analysis conducted by Melich and his team. The company’s liquidation value is only $5 per share excluding the Seritage cash and assumption that the money will be used to fund consistent operating losses.

[buffett]

Melich and his fellow analysts evaluated more than 700 full-line locations of Sears Holdings and rated each location based on co-tenancy characteristics and demographics.