Scholastic Corporation Sells Headquarters and Distribution Facility for $401M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 02 2025
0mins
Should l Buy SCHL?
Scholastic Corporation (SCHL) announced that it has entered into sale-leaseback transactions for its headquarters location in New York City and its primary distribution facility in Jefferson City, Missouri, which together are expected to generate estimated net proceeds of $401M. "The sale of these real estate assets aligns with the Company's long-term plan to monetize its significant non-operating assets to improve the efficiency of its balance sheet and create shareholder value. Proceeds are expected to be deployed in accordance with the Company's capital allocation priorities, including debt reduction and share repurchases," the company stated. Under the terms of the transactions, Scholastic is to sell 555-557 Broadway to a subsidiary of Empire State Realty Trust (ESRT) for gross proceeds of $386M in cash and Jefferson City to funds managed by affiliates of Fortress Investment Group for gross proceeds of $95M in cash. Upon closing of each of these transactions, Scholastic will enter into long-term leases to continue operations at both locations, while substantially reducing its footprint at 555-557 Broadway. Both transactions are expected to close before the end of 2025, following satisfaction of customary closing conditions, including title confirmation and surveys for Jefferson City. "Today's announcement reflects meaningful momentum for Scholastic as we unlock the value of our owned real estate and focus on accelerating long-term, profitable growth and shareholder value creation. Following highly competitive processes, these transactions maximize value from our most significant non-operating assets, while securing long-term use of strategic real estate key to our operations, now rightsized for our business needs. With a stronger balance sheet, we will be better positioned to continue investing in the extraordinary potential of our brand, content and mission, while returning capital to shareholders," said Peter Warwick, President and CEO of Scholastic.
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Analyst Views on SCHL
Wall Street analysts forecast SCHL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SCHL is 37.00 USD with a low forecast of 37.00 USD and a high forecast of 37.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 34.060
Low
37.00
Averages
37.00
High
37.00
Current: 34.060
Low
37.00
Averages
37.00
High
37.00
About SCHL
Scholastic Corporation is a publisher and distributor of children's books, a provider of literacy curriculum, professional services and classroom magazines, and a producer of educational and entertaining children's media. Its segments include Children's Book Publishing and Distribution, Education Solutions, Entertainment, and International. Children's Book Publishing and Distribution segment includes the publication and distribution of children’s books, ebooks, media and interactive products primarily in the United States. Education Solutions segment includes the publication and distribution to schools and libraries of children's books, classroom magazines and other products for grades pre-kindergarten to 12 in the United States. Entertainment segment includes the development, production, distribution and licensing of children and family film and television content. International segment includes the publication and distribution of products and services outside the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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- Leadership Change: Scholastic has appointed Jeffrey Mathews as President of Scholastic Education while retaining his role as Chief Growth Officer, aiming to drive long-term growth by enhancing educational content and strategy.
- Market Positioning: Since June 2025, Mathews has served as interim head of the division, during which he has improved business efficiency and profitability by optimizing market execution and simplifying operations.
- Strategic Focus: Mathews stated he will concentrate on deepening the impact in schools and communities by delivering high-impact learning experiences that support educators and unlock student potential.
- Experience Background: With over 30 years of experience in strategy, M&A, and investor relations, Mathews has held several key positions at Scholastic, providing him with valuable industry insights.
See More
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- Leadership Change: Scholastic appoints Jeffrey Mathews as President of Scholastic Education, aiming to enhance children's learning potential through strengthened literacy initiatives, with Mathews having led significant business progress since June 2025 as interim head.
- Market Positioning: As the supplemental instructional market normalizes, Scholastic expresses increased confidence in its education division, anticipating long-term value growth through its literacy leadership and deep partnerships with educators.
- Strategic Focus: Mathews emphasizes a commitment to deepening impact in schools, communities, and homes by delivering high-impact learning experiences that support educators, aligning with Scholastic's mission for sustainable growth.
- Experience Background: With over 30 years of experience in strategy, M&A, and investor relations, Mathews has held key roles at Scholastic, demonstrating his deep background and market insight essential for implementing the company's long-term growth strategy.
See More
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- Enhanced Market Trust: German users prefer transparent and stable systems, and internal usage metrics suggest that users engage consistently during regular trading cycles, highlighting the critical role of reliability and transparency in fostering user trust.
- Effective Infrastructure Management: The company continuously monitors system responsiveness to ensure that increased usage during peak trading hours does not compromise performance, demonstrating effective infrastructure management that supports long-term user engagement.
- Governance Structures Support Operations: ScholzGruppe maintains defined internal processes for system oversight and issue escalation, ensuring orderly platform operations and reinforcing user confidence in structured market environments.
See More
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- Significant Transaction Size: Newmark served as the exclusive real estate advisor, successfully facilitating Scholastic's $386 million sale-leaseback of its New York City headquarters, showcasing the firm's expertise in high-value transactions.
- Long-Term Lease Assurance: The deal includes a 15-year lease, allowing Scholastic to reduce its overall footprint while securing long-term access to operational space, thereby optimizing its balance sheet.
- Maintenance Responsibility Transfer: Empire State Realty Trust will assume ongoing property maintenance and capital improvement responsibilities, which not only alleviates Scholastic's operational burden but also enables a focus on core business activities.
- Expected Financial Gains: The transaction is anticipated to generate significant net proceeds for Scholastic, enhancing its financial flexibility to support future strategic investments and business expansion.
See More
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- Significant Transaction Size: Newmark served as the exclusive real estate advisor, successfully facilitating Scholastic's $386 million sale of its New York City headquarters, showcasing the company's expertise and market influence in large transactions.
- Long-Term Lease Security: The deal includes a 15-year lease agreement, allowing Scholastic to continue operations at the location while reducing its overall footprint, thereby optimizing asset allocation.
- Enhanced Capital Liquidity: Through this sale-leaseback transaction, Scholastic is expected to generate substantial net proceeds, which will enhance its financial flexibility and support future strategic investments.
- Transfer of Maintenance Responsibility: Empire State Realty Trust will assume responsibility for property maintenance and capital improvements, allowing Scholastic to focus on its core business while reducing direct management obligations.
See More
