NEW YORK CITY—Asserting that the retailer's property assets are worth $21 billion by themselves, activist investor Starboard Value LP is pressuring Macy's Inc. to split its real estate into two or more joint ventures. A Starboard presentation made public on Monday cites the success of recent JVs between Hudson's Bay Co., owner of Saks Fifth Avenue, and shopping center REITs Simon Property Group and RioCan Real Estate Investment Trust.

Starboard, which disclosed a stake in Macy's this past July, has repeatedly called on the Cincinnati-based retailer to monetize its real estate. Its most recent call to action comes a few days after Macy's reported disappointing same-store holiday sales and said it had hired Eastdil Secured to help market stakes in its owned stores.

Among those stores is the iconic flagship location in Manhattan's Herald Square. Starboard estimates the property's value is nearly $4 billion, or nearly half the combined value of the retailer's 407 owned mall locations, according to the Starboard presentation. The investor's proposal suggests one JV for flagship properties such as the Herald Square store and another for mall locations.

"We believe pursuing JV structures is the most prudent step for Macy's at this time to create significant value for shareholders given the wide discrepancy between the value of the real estate and the current enterprise value of the company," Starboard CEO Jeffrey Smith wrote to Macy's CEO Terry Lundgren. "We believe that a JV, or series of JVs, can crystallize the value of Macy's real estate while bringing in a partner with substantial capital and real estate expertise that will enable the JVs to grow and diversify their real estate holdings."

A spokesman for Macy's tells GlobeSt.com that the company has received the letter and accompanying materials from Starboard and is reviewing them. "We appreciate the input from all of our shareholders, including Starboard," according to the spokesman, who adds that the investor's viewpoint is consistent with actions already to explore JVs "and other potential relationships related to the company's real estate and to improve our profitability from operations."