Land & Buildings Sends Letter to Apartment Income REIT Board of Directors
January 20, 2021 at 09:00 AM EST
Today Land & Buildings Investment Management LLC (together with its affiliates, “Land & Buildings” or “L&B”), a significant shareholder of Apartment Income REIT (“AIRC” or the “Company”) (NYSE: AIRC), sent a letter to the Company’s Board of Directors (the “Board”).
The full text of the letter follows:
Dear Apartment Income REIT Board of Directors:
It is our view that your actions, previously as directors of Apartment Investment and Management Company (“AIV” or “Aimco”) (NYSE: AIV) and now as directors of AIRC, have destroyed value and disenfranchised shareholders for decades. Your stated objective to close the gap to NAV through a taxable spin of 90% of Aimco’s best apartment properties into what is now AIRC has been an abject failure, as over a month after the taxable spin the shares of AIRC trade at a substantial discount to your own stated NAV.
Recent events and actions surrounding the taxable spin only serve to underscore the long history of bad behavior that has occurred under your watch. Consider the following:
Shares of AIRC trade at $39, a substantial discount to your own disclosed NAV of $50 per share. Perhaps this outcome is predictable given the multitude of issues L&B and other shareholders highlighted with the spin, as well the complete disregard for shareholders demonstrated during the separation process. Under your and CEO Considine’s leadership, discounted valuations and underperformance are the rule, not exception.
The Board has a fiduciary responsibility to shareholders to maximize value and must take action to do so immediately. Specifically:
We look forward to your timely reply.
Founder & CIO