ISS Recommends New York City REIT Stockholders Vote for Sharon Stern on the WHITE Proxy Card

Rhea-AI Summary

Comrit Investments 1, LP announces ISS's support for nominee Sharon Stern to New York City REIT, Inc. (NYSE: NYC) board. The ISS report cites NYC's TSR underperformance, discount to NAV, and governance flaws as grounds for change. Comrit urges stockholders to vote on the WHITE proxy card to restore accountability in the boardroom. ISS acknowledges the necessity for an independent director like Stern, who has relevant experience in real estate and governance. Comrit emphasizes the urgency for stockholder value preservation.

Positive

• ISS supports Sharon Stern's nomination for the NYC REIT board, indicating a potential for improved governance.
• Stern's independence from the company and its external advisor may enhance board accountability.
• The report highlights the need for transparency regarding executive compensation, which could lead to better practices.

Negative

• NYC REIT has experienced sustained TSR underperformance compared to peers since its public listing.
• Persistent discount to NAV raises concerns about the company's market valuation.
• Existing governance issues include unratified poison pills and a classified board, which may hinder shareholder interests.

Leading Independent Proxy Advisory Firm Supports the Addition of Comrit’s Highly Qualified Nominee Sharon Stern to NYC REIT's Board

Report Notes the Company’s “TSR Underperformance, Discount to NAV, and Governance Flaws Confirm That the Dissident has Made a Compelling Case for Change”

Comrit Urges Stockholders to Vote on the WHITE Proxy Card to Elect Ms. Stern and Help Restore Independence and Accountability 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 announced that Institutional Shareholder Services Inc. ("ISS"), a leading independent proxy advisory firm, has recommended the Company's stockholders vote on the WHITE proxy card to elect Comrit's independent nominee, Sharon Stern.

In its full report, ISS affirmed the case for boardroom change at NYC REIT and agreed with Comrit's concerns regarding sustained underperformance and poor corporate governance under the current Board¹:

• “In consideration of the company's TSR underperformance, persistent discount to NAV, unratified poison pill, and questions about director independence, the dissident has made a case for change.”

• “As an externally-managed REIT, the company does not provide sufficient disclosure on the compensation paid to its executives by the external manager to enable shareholders to make an informed decision about the manager's pay practices.”

• “NYC shares meaningfully unperformed the peer median and benchmark index from the date of the public listing to the announcement of the dissident's campaign.”

• “While NYC's poor operational and share price performance are evident, the most important factor in this campaign is the company's governance, which has several features that are unfriendly to shareholders.”

• “In consideration of the slow-hand poison pill that has never been ratified by shareholders, classified board, interconnections among directors, and overlapping roles for Weil as CEO of both NYC and AR Global, the dissident has raised valid concerns about the board's willingness to objectively evaluate the performance of its external manager and to act in the best interest of shareholders.”

• “Dissident nominee Stern appears to have relevant real estate and public board experience and, perhaps most importantly, she is independent of the company and its external advisor AR Global […] having at least one fully independent director on the board appears to be a good first step.”

Ziv Sapir, Comrit's Managing Partner, commented:

"Comrit is very pleased that ISS has recognized the urgent need for change in NYC REIT’s boardroom by recommending stockholders vote on the WHITE proxy card given the Company's abysmal stockholder returns and poor corporate governance. Stockholders have suffered for too long at the hands of a conflicted Board and management team that have historically prioritized the interests of the Company's advisor over those of stockholders, including through the approval of an onerous advisory agreement that provides for excessive advisor compensation. We firmly believe the best path to preserving and maximizing stockholder value at NYC REIT is by electing our independent nominee, Sharon Stern, who possesses the right objectivity, public REIT board experience, real estate sector expertise and governance acumen to effectively oversee the Company and help deliver long-term value for all stockholders."

Stockholders can learn more at www.RebuildNYCREIT.com.

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

CONTACT INFO@SARATOGAPROXY.COM WITH ANY QUESTIONS REGARDING HOW TO VOTE.

***

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.

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¹ Permission to quote ISS was neither sought nor obtained. Emphases added.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220517006259/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 recommendation from ISS for NYC REIT stockholders?

ISS recommends NYC REIT stockholders vote on the WHITE proxy card to elect Sharon Stern.

What are the main concerns raised by ISS regarding NYC REIT's performance?

ISS cites sustained TSR underperformance and a persistent discount to NAV as key concerns.

How does Sharon Stern's nomination impact NYC REIT?

Her nomination is seen as a step towards improving governance and accountability on NYC REIT's board.

What is the significance of the WHITE proxy card for NYC REIT?

Voting on the WHITE proxy card is crucial for stockholders to elect independent candidates like Sharon Stern.

When was the press release regarding NYC REIT published?

The press release was published on May 17, 2022.