Activist investor declares itself unsatisfied with Forest City changes, targets Ratners who "feed at the trough"
From the letter:
We believe two things are crystal clear to investors following yesterday’s Forest City fourth quarter earnings results and conference call:The firm said not only should new independent directors be added, but "the Ratners should get their hands out of the cookie jar. By our last count at least ten Ratners remain on the payroll and continue to feed at the Company trough in addition to the Company providing tax protections for Bruce Ratner."
1. Net Asset Value (NAV) estimates should be higher, towards $31 per share, based on new Company disclosures, versus current estimates around $28 and yesterday’s closing price of $22.88; and
2. Nothing has changed at Forest City since shareholders agreed to pay off the Ratner family with ~$120 million, or a 31% premium, to give up their super voting B shares and there is no meaningful change in sight under the current leadership.
Land and Buildings said Forest City's board "should fully explore distributing proceeds from the $2.2 billion retail assets sales to shareholders," utilizing tax efficient strategies we have communicated to the Board.