JC Penney Exploring A Sale And Partial Leaseback Of Its Headquarters To Reduce Debt

Shares of

were trading higher by more than 0.50 percent on Friday after the company

it is considering a sale and partial leaseback of its corporate headquarter in Texas. J.C. Penney noted that a combination of "favorable market conditions" and a surplus of available space in the building makes its decision an "attractive real estate opportunity." The company added that the cost of leasing its office space would be offset by a reduction in maintenance costs, property taxes and interest expense as a result of paying down debt with proceeds from the transaction. "With the tremendous growth and development currently taking place within Plano and North Texas, there's no better time to take advantage of this lucrative market by pursuing a sale of our Home Office real estate," said Marvin R. Ellison, chief executive officer for JCPenney. "Even as we continue to deliver positive financial results across all aspects of our business, including delivering year over year gross margin increase in the fourth quarter, this presents an ideal opportunity to reduce outstanding debt and create long-term savings for the Company."