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STAMFORD - Land & Buildings Investment Management (L&B), a substantial shareholder of Six Flags Entertainment Corporation (NYSE:FUN), has called for the theme park operator to unlock value by monetizing its real estate assets while pursuing an operational turnaround.
In a letter to shareholders released Thursday, L&B stated that FUN’s stock has declined over 50% year-to-date and trades at a "trough EBITDA multiple of 7x on depressed earnings." The investment firm believes monetizing the company’s real estate could deliver "substantial near-term shareholder gains" while maintaining operational upside potential.
L&B suggested that Six Flags’ real estate could attract multiple bidders and potentially sell for up to $6 billion. The firm also proposed that a REIT spin-out has become more viable following FUN’s merger with Cedar Fair.
According to L&B’s analysis, separating the real estate could provide over 75% immediate upside based on 2026 consensus estimates, with potential upside of 130% if 2026 EBITDA recovers to $1.1 billion.
The investment firm outlined a three-part strategy: announcing a spin-off of a FUN REIT, evaluating the sale of real estate while preparing for REIT conversion, and considering options for FUN’s operating company to remain independent or be acquired.
L&B attributed Six Flags’ current weakness to "self-inflicted" merger integration issues and "transitory" extreme weather anomalies, expressing confidence in improved performance next year.
This marks L&B’s third engagement with Six Flags regarding real estate monetization since December 2022. The firm indicated that its recent conversations with management and the board have been "constructive."
The letter was issued through a press release statement from Land & Buildings Investment Management.
In other recent news, VICI Properties Inc. has reported its financial results for the second quarter of 2025, surpassing expectations. The company achieved an earnings per share (EPS) of $0.82, which exceeded the forecasted $0.69 by 18.84%. Additionally, VICI Properties reported revenue of 1 billion USD, slightly higher than the anticipated 993 million USD. In light of these results, the company has also raised its 2025 adjusted funds from operations (AFFO) guidance, reflecting confidence in its future performance. These developments indicate a positive outlook for VICI Properties, as they continue to perform well financially.
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