BETHESDA, MD–Land & Buildings' Jonathan Litt continues to express dismay about RLJ Lodging's financials and its selection of board members in a new letter to the REIT.
In it he urges the REIT to form a special committe to consider strategic alternatives “given RLJ's significant undervaluation and underperformance.”
Litt's grievances with RLJ go back to last summer when it “rejected multiple offers, reportedly from Blackstone, for as much as $25 per share – approximately 25% above the current share price,” Litt writes. “Today, we believe an offer for the company would likely be north of $26, given nearly $1 of savings as there is no longer a breakup fee and less debt defeasance costs, as well as higher lodging asset values.”
Litt also informed RLJ that it plans to run a slate of two director candidates, Michelle Applebaum and Samantha Yablon, for election at the company's 2018 Annual Meeting.
“Land & Buildings believes RLJ is significantly undervalued and intends to continue to advocate for maximizing long-term shareholder value at RLJ and will utilize all options available to achieve this,” Litt concludes.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
