NEW YORK CITY—Asserting that the retailer's property assets areworth $21 billion by themselves, activist investorStarboard Value LP is pressuring Macy'sInc. to split its real estate into two or more jointventures. A Starboard presentation made public on Monday cites thesuccess of recent JVs between Hudson's Bay Co.,owner of Saks Fifth Avenue, and shopping center REITs SimonProperty Group and RioCan Real Estate InvestmentTrust.

Starboard, which disclosed a stake in Macy's this past July, hasrepeatedly called on the Cincinnati-based retailer to monetize itsreal estate. Its most recent call to action comes a few days afterMacy's reported disappointing same-store holiday sales and said ithad hired Eastdil Secured to help market stakes in its ownedstores.

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