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Land & Buildings Issues Presentation Highlighting Opportunity to Unlock Substantial Real Estate Value at Six Flags

 Believes a REIT Conversion or Sale of the Company’s Real Estate Could Result in 100% Upside to Current Share Price Over Next 18 Months Given the Deep Discount SIX is Currently Trading At

L&B Has Had Constructive Discussions with Management and Believes the 2022 Repositioning Strategy Should Lead to Higher Attendance and Strong EBITDA Growth in 2023

Confident Multiple Parties Would Be Interested in Sale-Leaseback Transaction of Six Flags Parks at a Premium Valuation and That a Six Flags REIT Would Trade at Superior Valuation to SIX Shares Today

Land & Buildings Investment Management, LLC (together with its affiliates, “Land & Buildings”, “L&B,” “us” or “we”), an approximately 3% shareholder of Six Flags Entertainment Corporation (NYSE: SIX) (the “Company” or “Six Flags”), today issued a presentation detailing why it believes the Company is significantly undervalued and how Six Flags could unlock substantial value by executing a strategy to monetize its real estate while driving an operational turnaround.

The presentation is available at:

“Six Flags is an iconic brand with a tremendous value creation opportunity in front of it,” said Land & Buildings Founder and Chief Investment Officer, Jonathan Litt. “The Company is currently trading at a deep discount to its historical valuation following an aggressive 2022 repositioning of its parks, which resulted in a sharp drop in attendance this year. However, following recent discussions with management, we are optimistic that modifications to the repositioning strategy should lead to an enhanced guest experience, higher attendance and strong EBITDA growth in 2023.”

Litt continued, “Further, it is the ideal time to take action to monetize Six Flags’ uniquely valuable real estate portfolio given the high multiples similar assets are trading at in the public and private markets. This strategy of separating the real estate and operator is a structure we have seen succeed in maximizing value of numerous hospitality and leisure companies that we’ve invested in historically. We look forward to continuing our constructive dialogue with leadership and helping the Company to realize the potential of Six Flags for all shareholders.”

Key takeaways from the presentation include:

  • Six Flags could add $11 per share today by unlocking its real estate value. The Company owns and operates 17 parks across North America. L&B believes that Six Flags is a prime candidate for an Opco/Propco separation and that its real estate is likely valued at more than the Company’s entire current equity market capitalization of approximately $1.8 billion. L&B is assuming conservative estimates of value and that Six Flags could drive 50% upside to the shares in 2023 and over 100% in the next 18 months. The Company, under prior leadership, explored monetizing its real estate through a REIT structure in the 2015 - 2017 timeframe and gained comfort with the IRS that such a transaction could be achieved on a tax efficient basis.
  • The Company is poised for an operational rebound. The aggressive repositioning of the parks introduced by new CEO Selim Bassoul in 2022 led to a loss of over 10 million in attendance this year, which depressed EBITDA and has resulted in Six Flags trading at a substantial multiple discount to its historical valuation. However, L&B believes that the repositioning should lead to an enhanced guest experience and create a more profitable, higher margin business over time.
  • There are clear precedents for monetizing Six Flags’ real estate. In 2016 – following an investment and campaign from Land & Buildings – MGM Resorts (NYSE: MGM) created MGM Growth Properties (NYSE: MGP), a REIT which owned several highly regarded integrated casino resorts primarily in Las Vegas leased and operated by MGM. In 2022, MGP merged into VICI Properties (NYSE: VICI) to create a $50 billion experiential net lease REIT. This structure was innovated by Marriott (NYSE: MAR) in the 1990s, creating what is today called Host Hotels & Resorts (NYSE: HST), a $16 billion REIT, owning 78 properties, including the iconic Ritz-Carlton and Four Seasons hotels.
  • There are attractive partners for sale-leaseback transactions. VICI Properties, Gaming and Leisure Properties (Nasdaq: GLPI), Realty Income (NYSE: O), EPR Properties (NYSE: EPR), and Blackstone, as well as numerous private equity funds, have expressed interest in acquiring real estate related to large-format leisure assets, including theme parks. There is available liquidity and an attractive cost of capital for several of these buyers to acquire Six Flags’ real estate at a favorable valuation for the Company’s shareholders.
  • Land & Buildings is optimistic that discussions with management can remain constructive. Land & Buildings has had encouraging discussions with members of senior management, including CEO Selim Bassoul. L&B believes management understands the potential value available to the Company by unlocking its real estate and will explore this pathway, and that the team also recognizes the levers it can pull to reverse the negative results of 2022. L&B looks forward to ongoing collaborative discussions with Mr. Bassoul and the other members of Six Flags’ leadership.


This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in any state to any person. This press release does not recommend the purchase or sale of a security. There is no assurance or guarantee with respect to the prices at which any securities of the Company will trade, and such securities may not trade at prices that may be implied herein. In addition, this press release and the discussions and opinions herein are for general information only, and are not intended to provide investment advice.

This press release contains forward-looking statements. Forward-looking statements are statements that are not historical facts and may include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential, and statements regarding future performance. Forward-looking statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans”, “will be” and similar expressions. Although L&B believes that the expectations reflected in forward-looking statements contained herein are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties—many of which are difficult to predict and are generally beyond the control of L&B or Six Flags—that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. In addition, the foregoing considerations and any other publicly stated risks and uncertainties should be read in conjunction with the risks and cautionary statements discussed or identified in the Company’s public filings with the U.S. Securities and Exchange Commission, including those listed under “Risk Factors” in Six Flags’ annual reports on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements speak only as of the date hereof and, other than as required by applicable law, L&B does not undertake any obligation to update or revise any forward-looking information or statements. Certain information included in this material is based on data obtained from sources considered to be reliable. Any analyses provided to assist the recipient of this material in evaluating the matters described herein may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results. Accordingly, any analyses should not be viewed as factual and should not be relied upon as an accurate prediction of future results. All figures are unaudited estimates and, unless required by law, are subject to revision without notice.

L&B funds and investment vehicles currently beneficially own shares of the Company. These funds and investment vehicles are in the business of trading (i.e., buying and selling) securities and intend to continue trading in the securities of the Company. You should assume such funds and investment vehicles will from time to time sell all or a portion of their holdings of the Company in open market transactions or otherwise, buy additional shares (in open market or privately negotiated transactions or otherwise), or trade in options, puts, calls, swaps or other derivative instruments relating to such shares. Consequently, L&B’s beneficial ownership of shares of, and/or economic interest in, the Company may vary over time depending on various factors, with or without regard to L&B’s views of the Company’s business, prospects, or valuation (including the market price of the Company’s shares), including without limitation, other investment opportunities available to L&B, concentration of positions in the portfolios managed by L&B, conditions in the securities markets and general economic and industry conditions. L&B also reserves the right to change the opinions expressed herein and its intentions with respect to its investment in the Company, and to take any actions with respect to its investment in the Company as it may deem appropriate, and disclaims any obligation to notify the market or any other party of any such changes or actions, except as required by law.


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