Blackstone, a savvy real estate investor, has acquired two grocery-anchored shopping center REITs in the last two years. This pattern suggests strong institutional appetite for the asset class. Whitestone REIT ($WSR), one of the last remaining small-cap players in this space, is a logical takeout candidate as a result.

A sum-of-the-parts analysis suggests Alexander's ($ALX) is worth ~$340/share versus its ~$240 price. The valuation is anchored by its Bloomberg Tower asset and cash balance. This implies investors are essentially getting the company's Queens apartment building, shopping center, and a prime development site for free.

Canadian retailer Leon's Furniture holds a valuable real estate portfolio, including prime development land, on its books for a fraction of its market value. A plan to IPO this real estate into a REIT creates a clear catalyst to unlock this hidden value, a common playbook for scaled Canadian retailers.

Acquiring smaller companies at a 5-6x EBITDA multiple and integrating them to reach a larger scale allows you to sell the combined entity at a 10-12x multiple. This multiple expansion is a powerful, often overlooked financial driver of M&A strategies, creating value almost overnight.

Alexander's primary asset, the Bloomberg Tower, has a lease until 2040 with significant built-in rent bumps. The rent will step up from ~$79M to $88M in 2028. By 2030, a reset guarantees a minimum rent of $85.7M but could go as high as $104M depending on market rates, providing a powerful, contractual growth driver.

In Phase 1 operational improvements, a Pareto analysis reveals that the majority of value comes from three key areas: aligning and incentivizing the management team, rationalizing the revenue portfolio to focus on profitable segments, and optimizing the operational footprint.

Madison Square Garden's physical location above Penn Station gives its parent company a de facto veto over a $7.5 billion public renovation. This strategic position makes the property far more valuable than its standalone operations, as its consent is the key that unlocks a massive development project.

In a REIT liquidation, management teams with little equity ownership may be incentivized to accept the first reasonable offer to ensure a quick wind-down. This contrasts with an owner-operator who would fight for every dollar, potentially leaving value on the table for shareholders.

When a Home Depot store became too successful and couldn't handle more volume, the company's solution was to open another one nearby. This self-cannibalization strategy allowed them to capture total market share, ensuring customers bought from a Home Depot, even if it meant stealing from an existing location.