Hello Geoffrey,
Here's what I've tried to piece together about SVU's business lines and real estate from 10-Ks and 10-Q's. If anyone disagrees with anything they see, please let me know.
As of Fiscal Year End:
Total Stores = 2349
Licensed but Unowned Save-A-Lots = 855
Owned Save-A-Lots = 333
Other Brands (Some owned and some leased) = 1161
Total Square Feet = 65 Million
Owned 38% of the Square Feet = 24.7 Million
As of the end of this quarter, PPE looks to be reported at 6.679 Billion, and they opened another 41 Save-A-Lots (attempting to open 100 this fiscal year it seems).
If I look at the 24.7 Million Owned Square Feet + potential other plant & equipment, I think market value is above book value, but I'm not a real estate expert and without a precise breakout of stores and locations, it's hard to really pinpoint this.
From a business standpoint, it looks like the save-a-lots are doing ok from a sales comp perspective and aren't on the decline anymore. So, they're opening just these stores going forward. These are over 50% of their stores now, but the other stores are declining in sales and they have to find a way to stop this.
This is one of my top ten positions, but I do think it's more on the risky side than most of my other large postions.
Thanks,
Grant |
