HOFFMAN ESTATES, IL—Sears Holdings Corp. has put a timetable on its plans to launch a REIT, announcing Thursday that the formation and separation of the standalone real estate trust is expected to occur in May or June of this year. The REIT spinoff is intended to advance the beleaguered retailer's transformation into “a membership company, without the significant asset intensity of its traditional retail business,” according to SHLD.

SHLD says that although it can't offer any guarantees that a REIT separation will occur, it's making progress. It expects to sell the new REIT between 200 and 300 Sears and Kmart stores, with proceeds to SHLD of more than $2 billion.

The REIT itself would be funded by equity and debt, with the equity raised through a rights offering. The subscription rights would be distributed pro rata to all SHLD's stockholders of record.