Litt Reaffirms Brookdale Price Claims on Sale Talks

A Brookdale Senior Living community in Ann Arbor, MI. The company has more than 1,000 properties nationwide.

NASHVILLE—Following reports earlier this week that Brookdale Senior Living (BKD) was in early discussions about a sale of some or all of the company, shareholder Land and Buildings Investment Management reiterated its claim that the company’s stock is undervalued. “We believe the company’s net asset value is at least $25 per share, including owned real estate worth in excess of $21 per share,” founder and CIO Jonathan Litt wrote in a letter to shareholders that was made public on Friday. “Further, in our opinion, three recently completed multi-billion dollar seniors housing transactions highlight both the significant institutional demand for senior housing as well as the high valuations the real estate continues to garner in the private market.”

Litt wrote that “shareholders, ourselves included, would be extremely disappointed and would hold the Brookdale board accountable if the strategic alternatives process is not fully explored and fails to result in a successful conclusion. We, and in our opinion other shareholders will stand with us, refuse to accept any half steps taken by this board instead of the clear transparent action required to maximize shareholder value.’