Dillard's plans to form REIT
Little Rock, Ark. -- In a regulatory filing on Wednesday Dillard's said it plans to form a real estate investment trust, with the objective of improving liquidity.
According to the department store retailer, various company entities will transfer interests in properties to the REIT, which will then lease the properties back to them.
"Dillard's believes the formation of a REIT may enhance its ability to access debt or preferred stock and thereby enhance its liquidity," the filing said.
Dillard's also said it had formed a captive insurance company, a wholly owned unit intended to allow the retailer to more efficiently manage its risks and open access to more reinsurance markets.