Litt asserted that over the past several years, Brookdale shareholders “have endured one misstep after another” on the part of the REIT's management and board, “and nearly 70% of shareholder value has been eviscerated in the past 18 months.” Since the July 2014 merger between Brookdale and Emeritus Corp., he wrote, “earnings expectations have been consistently missed, and Wall Street estimates cut, as the Brookdale management team has overpromised and under-delivered—despite strong prospects for the industry overall.”

A Brookdale spokeswoman tells GlobeSt.com that the company's board and management “appreciate and value constructive input from shareholders, consistent with our goal of increasing shareholder value.”

NASHVILLE—Brookdale Senior Living said Tuesday it's “carefully evaluating” a letter from shareholder Land and Buildings Investment Management calling on the healthcare REIT to monetize its owned real estate. Led by CIO Jonathan Litt, who frequently has taken activist positions toward real estate trusts, Land and Buildings made public the letter to Brookdale's shareholders on Tuesday.

“It is time for Brookdale's board of directors to take affirmative action to maximize the value of Brookdale for all shareholders, sell the $7-billion-plus owned seniors housing portfolio and distribute the proceeds to shareholders,” Litt wrote. He asserted that Brookdale's net asset value equates to $25 per share, about twice the current share price of $12.52.

He wants to see the company became an “asset-light” management company in the seniors housing sector, where it's currently the largest operator in the US. “Emulating Marriott International in the lodging sector, Brookdale should focus on management and not ownership,” wrote Litt.

“The population of seniors over the age of 85 is expected to grow much faster than the population overall, including doubling over the next 20 years, which should cause seniors housing unit growth to be greater than hotel growth in the coming years and decades, providing an attractive runway for growth,” Litt wrote. “Marriott is currently trading at 21x 2017 earnings, while BKD trades at only 5.7x 2017 cash flow (including the value of the owned real estate) based on consensus estimates, an absurdly low valuation for a growing cash flow stream.”

Litt asserted that over the past several years, Brookdale shareholders “have endured one misstep after another” on the part of the REIT's management and board, “and nearly 70% of shareholder value has been eviscerated in the past 18 months.” Since the July 2014 merger between Brookdale and Emeritus Corp., he wrote, “earnings expectations have been consistently missed, and Wall Street estimates cut, as the Brookdale management team has overpromised and under-delivered—despite strong prospects for the industry overall.”

A Brookdale spokeswoman tells GlobeSt.com that the company's board and management “appreciate and value constructive input from shareholders, consistent with our goal of increasing shareholder value.”