It seems to be the season for activist investors not happy with investment values, but these days, who is happy unless you shorted the entire market on March 31? In addition to what is happening with Brookdale Senior Living, Land & Buildings, no stranger to the senior care industry, has put forward a few board candidates for National Health Investors.
It seems they are not happy with the current board composition and believe there are a few conflicts of interest between board members who own NHI shares as well as shares of NHI’s major tenant, National Healthcare Corporation. L&B believes that the lease payments from NHC are too low, and that with an increase it would benefit NHI’s value. Obviously, but it is not that simple.
NHI has recently added some new, competent board members, and the slate proposed by L&B is extremely qualified as well. L&B has not had much success in the senior care industry with its past pressure on management and boards, but maybe just rattling the saber is enough to push prices a little higher, at least for a while. NHI’s share price has performed decently in the current stock market meltdown, so we are not sure shareholders are very concerned. We are not, and we have always liked Eric and his team. Besides, NHI’s acquisition pipeline will push growth and value.
