Land & Buildings Issues Letter to Aimco Shareholders Highlighting Why Board Change Is Needed Now
Land & Buildings Investment Management has issued a letter urging Aimco shareholders to vote for their nominees Michelle Applebaum and Jim Sullivan, citing a need for increased board independence to close the company's significant discount to net asset value (NAV). The letter highlights Aimco's poor corporate governance, resistance to shareholder input, and ongoing underperformance in the market. Institutional Shareholder Services (ISS) supports these claims, suggesting Aimco's leadership has failed to adequately communicate with investors.
- Nominees Michelle Applebaum and Jim Sullivan are well-qualified and could enhance board independence.
- Potential for a 60% upside to NAV with improved governance and oversight.
- Aimco has demonstrated resistance to shareholder engagement and feedback.
- The company has underperformed in the market and traded at a deep discount to its stated NAV.
- Recent governance changes appear self-serving rather than genuine improvements.
Leading Proxy Advisory Firm ISS Concluded “Increased Independence” is “Warranted” at the Board Level in Order to Help Close the Value Gap at Aimco
Land & Buildings’ Recent Attempt to Settle Proxy Contest Amicably Was Rejected by Aimco Leadership – Further Demonstrating the “Resistance to Shareholder Input” Flagged by ISS
Aimco’s Poor Corporate Governance Practices, Conflicts of Interest and Failed Investor Communications Efforts Further Underscore Why Shareholders Should Vote the BLUE Universal Proxy Card to Elect Land & Buildings’ Highly Qualified Nominees
The full letter is included below:
Dear Fellow Shareholders,
This week you will be faced with an important choice that we believe will determine the future of your investment in
1) You can vote for more of the same at Aimco – where an ingrained disregard for shareholders and chronic inability to realize the full value of its assets have continued to define the Company even after its
OR
2) You can vote for the two exceptionally qualified nominees from
Consider the following:
Our latest attempts to reach an amicable solution in the best interests of Aimco shareholders were rebuffed
This past weekend (
In our view, this is more of the same from Aimco and reflects its troubling pattern of doing the bare minimum in an attempt to maintain the status quo. As ISS noted, “AIV has a history of governance measures that are not consistent with best practices, particularly as it relates to shareholder rights,” and “[T]he AIV board has demonstrated resistance to shareholder input,” when it comes to considering investor-recommended director candidates.
This election may be the only opportunity to finally shift the status quo at Aimco – and the only way to assure this happens is by voting for our two nominees. We cannot underscore enough the importance of exercising your fundamental right to elect directors at the upcoming Annual Meeting. Vote for real change and accountability in the boardroom on the BLUE universal proxy card TODAY.
Aimco’s corporate governance failings and last-minute maneuvers
Over the past few weeks, Aimco has issued two separate announcements pledging to reverse some of its most egregious governance practices. It is important to see these maneuvers for what they are: transparently self-serving moves of desperation aimed at winning last-minute shareholder support, rather than a sincere effort to improve corporate governance.
Specifically regarding Aimco nominee
We simply believe shareholders deserve better – including directors who will take proactive measures to benefit shareholders and not only act due to outside pressure.
We see an opportunity to reverse Aimco’s discount to NAV with improved independent oversight of capital allocation
We believe there is an approximate
The Company has underperformed for years and has been undervalued both pre- and post-Spin. Pre-Spin, Aimco was a persistent underperformer based on TSR compared to its apartment peers, consistently trading well below NAV. Following the Spin, Aimco has continued to trade at a deep discount to its own stated NAV, yet is pursuing a large-scale acquisition and development growth plan that requires an effective cost of capital the Company does not possess.
Land & Buildings believes it is critical to improve stewardship and oversight at the Board level now, as Aimco embarks on its planned ambitious >
Independent oversight is needed now to execute on Aimco’s vague promise to evaluate a “broad range of options to enhance stockholder value.” ISS echoes these concerns about the current Board’s ability to properly evaluate the Company’s go-forward strategy, stating, “… the lack of detail from the company regarding its development pipeline makes it difficult for shareholders to estimate the potential value of these developments and track management's execution. While it may be difficult to assign a precise dollar value to the potential impact of a more robust investor communication program, the current state of disclosure is an obvious impediment to reducing the company's discount to NAV.”
Our independent nominees possess the qualifications and experience desperately needed to guide the Company going forward
It is our strong view that our independent and exceptionally well qualified and experienced nominees –
***
Now is the time for shareholders to make their voices heard and ensure that Aimco charts a course that maximizes value.
WE STRONGLY URGE AIMCO SHAREHOLDERS TO VOTE THE BLUE UNIVERSAL PROXY CARD TODAY FOR THE ELECTION OF BOTH OF LAND & BUILDINGS’ HIGHLY QUALIFIED AND EXPERIENCED NOMINEES
Sincerely,
_____________________
1 Permission to quote ISS was neither sought nor obtained. Emphases added.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221212005769/en/
Media
dzacchei@longacresquare.com
Investors
(212) 257-1311
Source:
FAQ
What did Land & Buildings say about Aimco's board in their recent letter?
What are the implications of ISS's findings for Aimco shareholders?
When is Aimco's Annual Meeting scheduled?