Marcato Releases Analysis of REIT Spin-Off Opportunity at Dillard's Inc.

SAN FRANCISCO, Nov. 20, 2014 /PRNewswire/ -- Marcato Capital Management LP ("Marcato"), a San Francisco-based investment manager, today released a presentation outlining opportunities it sees for significantly increasing shareholder value at Dillard's Inc. (NYSE: DDS) ("Dillard's" or the "Company").  Marcato beneficially owns securities representing 4.9% of Dillard's outstanding shares. 

Mick McGuire, Managing Partner of Marcato, said:

"We commend Dillard's board and management on effectively executing on its business plan in recent years.  Dillard's has improved its inventory assortment and gross margins, reduced excess SG&A and unproductive advertising expenses, and closed underperforming stores.  While the Company has utilized its capital efficiently to repurchase a substantial percentage of its outstanding shares, we believe there is more that can be done to create substantial long-term shareholder value. 

In recent months, several major corporations with significant real estate ownership have announced their intentions to explore the separation of these assets into stand-alone companies that would qualify for treatment as real estate investment trusts ("REIT").  We believe that Dillard's could unlock tremendous value were it to pursue such a transaction. 

Accordingly, we have decided to share our analysis highlighting the value of Dillard's underlying real estate assets and the compelling case for the creation of a stand-alone REIT.  We believe executing on this plan would value the companies at a combined $193 per share, representing a 75% increase from current prices.  We encourage Dillard's board and management to actively explore this opportunity to the extent it is not presently doing so."  

The presentation detailing Marcato's analysis can be found here:
http://origin-qps.onstreammedia.com/origin/multivu_archive/ENR/Presentation.pdf

For further information, contact:
Jonathan Gasthalter
212-687-8080

SOURCE Marcato Capital Management LP

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