Still trying to get two board nominees, Land and Buildings steps up its criticism and need for change.

Well, well, well. Jonathan Litt of Land and Buildings is at it again, this time with a six-page letter to Brookdale Senior Living shareholders, eviscerating Brookdale’s management and board, past and present, for the company’s severe underperformance over the past 10 years. So, what else is new?

Look, management and much of the board has changed and the only ones who can be blamed for the disastrous Emeritus acquisition are the old management, the former board and perhaps their advisors, who should have known better. 

Highlighted in his letter was the underperformance of Brookdale relative to the SHOP portfolios of the REITs. What he doesn’t say is why, such as a difference in quality and location, which can help minimize the problems facing the industry over the past few years. Atria’s locations can’t be compared with Brookdale’s and even they have underperformed their landlord’s expectations.

He criticized current management for taking the proceeds from asset sales and, are you ready for it, investing the cash in the company. Can you imagine, a going concern investing in their future? Sarcasm aside, I am sure they looked at using it to also pay down debt, but I am also sure they are looking at the long term.

However, I have a solution, since I don’t think Brookdale will nominate Mr. Litt or his companion, Jay Flaherty, to be on the board. So, why not me? I have known the industry longer than either of them. I was the only one who blasted the Emeritus deal, BEFORE it was announced, and would have done so on the board and saved it from some of the current misery. I think I understand this industry, where it has been and where it is heading, better than most people. I also have capital markets experience, back in my investment banking days. But guess what. It won’t happen. Why? Most boards don’t want people like me. Nothing personal, but can you imagine a board member who knows more about the industry than the CEO, or any other C-suiter? It just doesn’t happen. Maybe it should.