Land and Buildings Investment Management LLC recently sent an open letter to shareholders of Brookdale Senior Living Inc. which stated that they believed there is tremendous value to be realized at Brookdale.
The letter states that “We have tried to engage in constructive dialogue with the Brookdale Board of Directors and management team regarding the opportunities that we believe are available to unlock this value. However, despite our sincere efforts to reach a collaborative solution, we remain deeply disappointed that the Board does not appear to recognize the need for urgent and real change at Brookdale.”
Brookdale’s total shareholder return has consistently underperformed, the letter said. “We are deeply disappointed and fault a lack of urgency on the part of the company, having not sought to maximize value for all shareholders through an asset monetization program since the majority of leases were restructured more than a year ago.”
To that end, on July 2, 2019, two director candidates for election to the Board at the Company’s 2019 Annual Meeting of Shareholders were nominated and the letter states that the nominees have the deep healthcare, real estate and finance experience necessary to help properly evaluate the best ways to maximize value for all Brookdale shareholders, including evaluating the best strategic options for Brookdale’s real estate and capital structure.
We will report back on this as we follow and learn more.