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Six Flags is facing renewed activist pressure from Land & Buildings, which holds about 2% of the company. The investor wants the theme park operator to either sell or spin off its real estate, estimating the assets could be worth up to USD 6 billion. This call comes after Six Flags posted weaker quarterly results, including revenue of USD 930.4 million, a net loss of around USD 100 million, and a 9% drop in attendance. Alongside these challenges, CEO Richard Zimmerman is preparing to exit by year-end while the company searches for his successor.
Land & Buildings, an activist investment firm with a 2% stake in Six Flags Entertainment, is pressing the theme park operator to consider either selling or spinning off its real estate portfolio. According to reports, the investor believes the company's land assets could be valued at nearly USD 6 billion, far higher than Six Flags' current market capitalization of about USD 2.1 billion. Advertisement
The proposal centers on the idea that separating the parks' operations from the property holdings, or selling the real estate to outside buyers, could unlock additional value for shareholders. People familiar with the matter indicated that the activist expects interest from private equity firms and real estate investors if such a move is explored.
Six Flags has been under pressure following weaker financial performance. In its most recent quarter, the company reported revenue of about USD 930.4 million but also posted a net loss of roughly USD 100 million. Attendance fell by around 9%, translating to nearly 1.4 million fewer guest visits compared to the same period a year earlier. These results missed market expectations and added to concerns about the business outlook.
Leadership changes are also underway. The company announced in August that its CEO, Richard Zimmerman, would leave his position by the end of the year. He will continue to serve until a replacement is appointed, and the board has started the process to identify a successor.
Land & Buildings has made similar proposals in the past. In 2022, it pushed for Six Flags to monetize its real estate holdings, and in 2023, it raised objections to the company's planned merger with Cedar Fair. The renewed pressure shows the activist investor's continued belief that the company is not making full use of its property assets.
Both Land & Buildings and Six Flags have so far not responded to requests for comment on the matter.
Source Reuters
5th Jun, 2025
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