Blackwells Seeks to Install Board Members at Two Net Lease REITs
The investor holds particular ire for their external manager AR Global Management.
Blackwells Capital believes that both Global Net Lease and The Necessity Retail REIT trade at significant discounts to the value of their portfolios and is seeking to install two independent directors on their respective boards to bring about not only governance change but also establish strategic review committees to evaluate possible “extraordinary transactions.”
The investor holds particular ire for their external manager AR Global Management and calls for its agreement with the REITs to be terminated to “unlock this embedded shareholder value.”
For instance, Blackwells maintains that Global Net Lease and The Necessity Retail REIT’s operating loads as a percentage of market cap are 10.2 times and 20.2 times the triple net lease peer average.
In addition, it says that Global Net Lease’s management fee has gone up 2.6 times while its stock has fallen 65% since its IPO and The Necessity Retail REIT’s management fee has gone up 2.9 times while its stock has fallen 62% since its re-IPO.
“The gross discount to the Net Asset Values of both Global Net Lease and The Necessity Retail REIT will shrink rapidly and then consistently with Blackwells’ initiatives,” it wrote in an investor presentation.