By Svea Herbst-Bayliss
NEW YORK (Stocksak), – Blackwells Capital has launched 2 proxy fights to fill board seats. Global Net Lease (NYSE:) Inc & Necessity Retail REIT Inc. He wants the realty companies to fire their manager, according two people who are familiar with the matter.
The sources claimed that the investment firm had nominated two of the same candidates for each company’s director positions and wanted the firms to implement sweeping governance reforms, including selling themselves.
Blackwells wants the two companies to take over AR Global, which owns and manages properties for others. According to people, Blackwells will nominate two additional directors at GNL in 2024 to increase the pressure.
Jason Aintabi, Blackwells founder, stated that proxy fights will reveal how a conflicted set of operators have harmed shareholders. He said that the only way forward was to replace the outside manager and fix corporate governance.
People said that he blamed the poor performance and high costs of both companies on AR Global, the manager external.
AR Global, Necessity Retail, and GNL representatives did not respond to email requests for comment.
Blackwells is one of the top five shareholders at GNL. Aintabi contacted the board last month but did not have any meaningful engagement with them, the people claimed. Necessity Retail REIT Blackwells holds 100 shares.
GNL is valued roughly at $1.14 Billion, while Necessity Retail REIT has a value of approximately $840 M. Each share price has fallen by around 30% since January.
GNL and Necessity Retail REIT lost approximately half their value over the past five years. GNL’s stock prices fell 54% and GNL’s stock prices dropped 49%, respectively.
Comparatively, the Vanguard Real Estate Index Fund (ETF) lost 32% this past year, but has only 5% in the last five years.
Blackwells wants AR Global to be terminated. He also wants GNL’s & Necessity Retail REIT boards to examine strategic alternatives and make sweeping governance changes.
It calls for all board members to run for election every year. Aintabi also wants every board to create a strategic review panel to examine the possibility of hiring financial advisors to help with selling the companies, according to people.
GNL currently has eight directors on its board, while Necessity Retail REIT has 5.
Blackwells will nominate the same directors for each company. Richard O’Toole is a tax lawyer and James Lozier, who founded Goldman Sachs Realty Management (NYSE:) Realty Management), has experience as a director in publicly traded companies.
Blackwells, who is currently the chief executive of GNL, hopes to replace directors James Nelson or Edward Weil. Nelson is GNL’s chief executives, while Weil is AR Global’s CEO. Necessity Retail is targeting Blackwells, who is also board chair, and Stanley Perla.
The people stated that the two new directors would work to reverse anti-takeover measures if elected at the next year’s annual assembly.
Blackwells, who pushed for the ouster John Foley (NASDAQ:) Co-founder and CEO of Peloton (NASDAQ) this year, was a headline-grabbing figure in real estate. However, he is best known for pushing for changes at Colony Capital(NYSE:) and Monmouth Real Estate Investment (NYSE:) Corp.
Blackwells and Colony were offered board seats, and Tom Barrack, a billionaire friend and former President Donald Trump’s, was elected CEO of the company sooner than expected.