Comrit Investments Releases Presentation Detailing the Urgent Need for Change in New York City REIT's Boardroom

Rhea-AI Summary

Comrit Investments has criticized New York City REIT (NYSE: NYC) for poor performance and board practices that have allegedly led to negative stockholder outcomes since its public listing in August 2020. The firm urges shareholders to vote for independent nominee Sharon Stern to enhance governance and accountability during the upcoming 2022 Annual Meeting. Comrit points out the increasing executive compensation alongside a deteriorating capital position as significant risks. They advocate for change to restore stockholder value and improve NYC REIT's operational strategy.

Positive

• Nominee Sharon Stern offers public REIT experience and financial expertise.
• Potential for improved governance if Stern is elected.

Negative

• Board has overseen negative returns since public listing.
• Executive compensation has increased despite poor performance.
• Trading price discount to NAV has widened.

Highlights the Incumbent Board’s Anti-Stockholder Practices, Concerning Interconnectivity and Record of Presiding Over Negative Returns Across Every Relevant Time Horizon

Makes Clear That the Company Is at Risk if the Status Quo Persists, as NYC REIT’s Capital Position Shrinks, Executive Compensation Rises and Trading Price Discount to NAV Widens

Reminds Stockholders That Independent Nominee Sharon Stern Has the Public REIT Experience and Financial Expertise Required to Help Rebuild NYC REIT

Urges Stockholders to Vote on the WHITE Proxy Card to Restore Accountability and Credibility in the Boardroom

NEW YORK & TEL AVIV, Israel--(BUSINESS WIRE)-- Comrit Investments 1, LP (together with its affiliates, “Comrit” or “we”), a long-term stockholder of New York City REIT, Inc. (NYSE: NYC) (“NYC REIT” or the “Company”), today issued a comprehensive presentation that details the urgent case for change in NYC REIT's boardroom and summarizes the qualifications of its highly skilled and experienced nominee, Sharon Stern. As a reminder, Comrit is calling on stockholders to vote on the WHITE proxy card to elect Ms. Stern at the Company's 2022 Annual Meeting of Stockholders (the "Annual Meeting"). Learn more at www.RebuildNYCREIT.com.

CLICK HERE TO DOWNLOAD AND VIEW THE INVESTOR PRESENTATION

Ziv Sapir, Comrit's Managing Partner, commented:

"Following its public listing in August 2020, NYC REIT has continued to significantly underperform while the Board has initiated stockholder-unfriendly maneuvers, including the adoption of a defensive poison pill, serious conflicts of interest and the approval of an egregious advisory agreement that provides for excessive compensation and prioritizes management and the Company's advisor's interests over those of stockholders. In our view, leadership's repeated failure to create value for stockholders stems from a lack of independence, financial acumen and governance expertise across the current Board and management team. We believe stockholders deserve a highly qualified, independent director who is unhindered by legacy biases and conflicts of interest and who is laser-focused on unlocking value for stockholders.

At this year's Annual Meeting, stockholders have an opportunity to add a public company governance expert to the Board who can help objectively evaluate the Company's performance, governance and go-forward strategy. If elected, Sharon Stern will bring fresh perspectives and much-needed skills to help the Board improve NYC REIT's abysmal governance and create long-term value. We urge stockholders to vote to reverse the dismal status quo and begin rebuilding NYC REIT today."

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VISIT WWW.REBUILDNYCREIT.COM TO REVIEW OUR PRESENTATION.

VOTE THE WHITE PROXY CARD TO ELECT INDEPENDENT, HIGHLY QUALIFIED NOMINEE SHARON STERN.

CONTACT INFO@SARATOGAPROXY.COM WITH QUESTIONS ABOUT YOUR PROXY AND HOW TO VOTE.

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About Comrit Investments

Comrit Investments 1, LP is an investment partnership that invests in income generating real estate through public non-traded real estate investment trusts. Founded in 2015 and based in Tel Aviv, Washington D.C. and New York City, Comrit is sponsored by I.B.I. Investment House Ltd. (TLV: IBI), an Israel-based market leader in alternative fund offerings. Comrit’s management team collectively has 30 years of experience investing across the U.S. real estate market.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220504006182/en/

For Investors:

Saratoga Proxy Consulting LLC

John Ferguson / Joe Mills, 212-257-1311

jferguson@saratogaproxy.com / jmills@saratogaproxy.com



For Media:

Longacre Square Partners

Charlotte Kiaie / Bela Kirpalani, 646-386-0091

ckiaie@longacresquare.com / bkirpalani@longacresquare.com

Source: Comrit Investments 1, LP

FAQ

What is the main issue raised about NYC REIT in the press release?

The press release criticizes NYC REIT's board for poor performance and anti-stockholder practices.

Who is urging stockholders to vote for change at NYC REIT?

Comrit Investments is urging stockholders to vote for independent nominee Sharon Stern.

When is the NYC REIT Annual Meeting scheduled?

The NYC REIT Annual Meeting is scheduled for 2022.

What risks are associated with the current board of NYC REIT?

The risks include increasing executive compensation, a deteriorating capital position, and poor governance leading to negative stockholder returns.