Land & Buildings urges Aimco to assess all options
April 18 (Reuters) - Activist investor Jonathan Litt's Land & Buildings Investment Management on Tuesday urged real estate investment trust Apartment Investment and Management Co to evaluate all potential alternatives – including a sale.
Land & Buildings, which owns a 5.8% stake in the REIT, has criticized the company for its trading discount to the stated net asset value.
In a letter to Apartment Investment and Management Co (Aimco), Litt said Land & Buildings has "grown increasingly concerned about the company’s continued failure to act with urgency in exploring ways to maximize value for shareholders." Litt, had in August, met with Aimco management to explore a sale of the REIT, Bloomberg news then reported.
In December, Land & Buildings' independent nominee James Sullivan was appointed to Aimco's board after a recommendation by proxy adviser Institutional Shareholder Services(ISS) stated that a newcomer could help iron out governance issues and establish a more robust investor communication program that could improve performance.
"We believe a potential sale could result in between 40% and 60% upside to the current trading price," Litt said in the letter.
(Reporting by Kannaki Deka in Bengaluru; Editing by Dhanya Ann Thoppil)
