Brookdale Senior Living investor Land & Buildings has nominated Jonathan Litt and Jay Flaherty to Brookdale’s board. Still pushing for a REIT spin-off?
He’s baaaack. After his 10-year stint as CEO of HCP, Inc., which included his ill-fated and ill-timed acquisition of the former HCR ManorCare, Jay Flaherty may be back in the senior care mix. That is, if Jonathan Litt of Land & Buildings has his way.
Land & Buildings Capital Growth Fund, LP has delivered notice to Brookdale Senior Living that it is nominating Flaherty and Litt for election to the company’s board of directors. We shall see how that flies with the current Brookdale board. Our guess is that they will not go for it.
There is some risk with that, however, because various hedge funds and other activist investors are still pushing for change and enhanced shareholder value. Land & Buildings has been the most vocal about spinning Brookdale’s best real estate into a new REIT. And, our old friend Jay Flaherty does have some REIT experience, even though he was ultimately let go by that board. And, we are sure he would not mind taking the helm at a new Brookdale REIT. Hell, I would consider taking that job. But alas, the phone is not ringing.
Activist interest in Capital Senior Living has been increasing as well, and now four groups control 45% of the outstanding shares. Sam Levinson and his funds just bought 900,000 shares at $5.03 to increase their holdings to 4.6 million shares, now the largest shareholder group. Action is what they want. Stay tuned.