REIT Activist Scores Win In Associated Estates $2.5B Sale To Brookfield
ByLand and Buildings, the activist hedge fund run by former Citigroup C +1.18% real estate investment trust (REIT) stock analyst Jonathan Litt claimed a major victory on Wednesday in Associated Estates Realty AEC +16.38% Corporation’s $2.5 billion sale to industry giant Brookfield Asset Management . Since Litt emerged as a challenger to Associated Estates in mid-2014, calling for the company’s sale, shares have gained over 65%.
Initially, Land and Buildings asked Associated Estates to be sold given what it characterized as a large and persistent discount to its net asset value on public stock markets. The small size of Associated Estates and its large public company costs were creating inefficiencies and cutting into earnings, Land and Buildings argued. After its recommendations were initially rebuffed by Associated Estates, the fund launched a proxy campaign to have directors nominated to the company’s board…
REIT Activist Scores Win In Associated Estates $2.5B Sale To Brookfield
