Is Six Flags Entertainment (FUN 4.27%) about to undergo a radical transformation in its business?

If an activist investor in the amusement park operator gets its way, Six Flags could morph into a new type of company entirely. After said investor published a letter detailing such a plan, market players traded the stock up by 4% on Friday. That performance compared very well to the 0.6% increase of the S&P 500 index across that session.

Valuable property

That morning, the activist, Land & Buildings Investment Management, published the letter it sent Six Flags. True to its name, the activist pushed the company to consider monetizing its sprawling land portfolio, suggesting means such as a spin-out of such assets into a real estate investment trust (REIT), or outright sales.

Image source: Getty Images.

This isn’t the first time Land & Buildings has prodded Six Flags to exploit the value of its properties. In the letter, it said that one of its presentations illustrated how the company’s stock could rocket 50% higher after pulling one of those moves.

The stakes are even higher now, at least according to the activist.

Referring to the beaten-down Six Flags equity, it wrote that “Today, with the Company’s valuation near all-time lows, we see an even more compelling rerating opportunity from separating the real estate, with over 75% immediate upside based on 2026 consensus estimates.”

Land & Buildings wrote that “Upside could be as much as 130% if 2026 EBITDA recovers to $1.1 billion (FUN’s original 2025 guidance).”

Small stake, big voice

As is standard with activist investors, Land & Buildings has a small (roughly 2%) stake in Six Flags, so it probably can’t effect such a change on its own. Effective activists are good at shaking up the people who can make big moves, and at getting shareholders behind their ideas. So far, the company’s ideas for “unlocking” the value of the real estate seem to be resonating. We’ll see if they result in real change.