In today’s briefing:
- This TOB Does Not Question the Fundamental Issue of REIT Governance, but Will the Tactic Succeed?
This TOB Does Not Question the Fundamental Issue of REIT Governance, but Will the Tactic Succeed?
- Since important decisions on REIT management are made by the sponsor companies, governance isn’t functioning. That’s why REITs have been very careful to strengthen their compliance systems and information disclosure.
- For REITs that rely heavily on properties contributed by their sponsors, it is unlikely that other investors would support an activist fund’s advocacy for a change of asset manager.
- The most annoying thing for the sponsor is the change of asset manager. The tactic of this TOB is to extract shareholder returns by addressing what the sponsor company dislike.
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