SIX - Six Flags is being pressed to sell its real estate assets - watch these REIT players

Land & Buildings Investment Management posted a presentation on Wednesday detailing why it believes the company is significantly undervalued and how Six Flags Entertainment ( NYSE: SIX ) could unlock substantial value by executing a strategy to monetize real estate while also driving an operational turnaround.

Six Flags ( SIX ) was called an iconic brand with a tremendous value creation opportunity that is currently trading at a deep discount to its historical valuation. L&B said it is optimistic that modifications to the repositioning strategy should lead to an enhanced guest experience, higher attendance and strong EBITDA growth in 2023.

Specifically, Six Flags ( SIX ) is noted to own and operate 17 parks across North America.

"L&B believes that Six Flags is a prime candidate for an Opco/Propco separation and that its real estate is likely valued at more than the Company’s entire current equity market capitalization of approximately $1.8 billion."

The activist firm believes a REIT conversion or sale of Six Flags' real estate could result in 100% upside for the stock. Notably, the transaction could attract several interested parties with VICI Properties ( VICI ), Gaming and Leisure Properties ( GLPI ), Realty Income ( O ), EPR Properties ( EPR ), Blackstone Mortgage Trust ( BXMT ), and numerous private equity funds having expressed interest in acquiring real estate related to large-format leisure assets, including theme parks.

Land & Buildings Investment Management confirmed that it has accumulated a 3% stake in the theme park operator.

Shares of SIX shot up 5.75% in premarket trading on Wednesday after L&B confirmed an earlier report on the activist stake.

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