Justin Sullivan/Getty Images News Six Flags (NYSE:SIX) rose 5.7% in after hours trading after a report that an activist investor has taken a stake and wants the theme park operator to sell or spin off its real estate. Activist Land & Buildings Investment Management has accumulated a 3% stake in Six Flags (SIX), according to a WSJ report, which cites a copy of presentation that the investor plans to make to investors. Land & Buildings founder Jonathan Litt had has talks with the Six Flags CEO about splitting the business into operating and property companies.
Litt argues that Six Flags real estate alone is worth more than the company's $1.7 market capitalization and that real estate and private equity firms would be interesting in acquiring the land, the WSJ said. Six Flags shares have dropped over 50% this year. Last month William Blair cut its rating on the theme park operator to market perform, citing an erosion in attendance.
Six Flags (SIX) short interest is 9.9%. The activist push also comes after Six Flags (SIX) last month announced the company and H Partners agreed to amend a cooperation agreement to permit H Partners to increase its beneficial ownership of Six Flags common stock to 19.9%, up from a cap of 14.9% in the original agreement.