The news sounds so sexy at first.

Following in the footsteps of Loblaw Companies Ltd., Hudson’s Bay Co. wants to spin its properties into a new real estate investment trust and raise money through an initial public offering, giving management some cash to do whatever it pleases.

But long-term, things may not be so rosy. REIT valuations are driven by market rents and the prospects of increasing lease payments, and a new REIT holding HBC properties will have to play by the same rules.