Earlier this summer, Kmart announced plans to sell several dozen stores, with some going to Sears and some to Home Depot. The price for those 78 stores worked out to an average of about $12.4 million per property.

Kmart declined to comment for GlobeSt.com about the report. The retailer has said in the past it is committed to turning around its operations and remaining in the retail business. Kmart emerged from a year-long bankruptcy in 2003 with about 1,500 stores--600 less than before the filing.

Kmart's stock jumped $10.08 Tuesday, or 15.73%, to $74.16 before closing at $73.24, up 14.29% for the day, on the Nasdaq. The analysts say a key to Kmart's high net asset value is its relatively inexpensive long-term leases, which have an average of 17 years remaining and average rent of $2.03 per sf. In addition, most of the company's debt was eliminated during bankruptcy proceedings, they say.

Deutsche Bank examined the real estate holdings of 37 retailers and found that eight of them had real estate value significant enough to generate a per-share net asset value higher than their stock price. The other companies include ShopKo Stores Inc., Dillard's Inc., Saks Inc., Sears Roebuck and Co., Winn-Dixie Stores Inc., Federated Department Stores Inc. and Toys R Us Inc.