TRS Bull Case, page-7

TRS leases are also 3-5 years, so they turn over at a fairly frequent rate, and landlords are generally always willing to extend leases on profitable stores. This contrasts with leases for Kmart etc which are 10-25 years and can be a large noose around their neck.

With the US discount variety retailers trading at 9-12x EV/EBITDA, and TRS trading at 2-2.5x EV/EBITDA, there is a lot of value upside here. Private equity could come in, slow the rate of store rollouts, improve merchandising, close underperforming stores as they roll off, etc and make a decent return.

I know retailing is a tough gig, but market position/share, brand, leverage, clean accounts and store network put TRS in a very different position to the Dick Smiths etc of this world, in my view.