NEW YORK CITY—Two more shots have been fired at New York REIT by its dissatisifed investors.

First Winthrop Corp., a private real estate management and investment company whose executive management team has served as external advisor to multiple real estate investment trusts, and the Witkoff Group have released two letters sent to the board of directors and New York REIT CEO and president Michael Happel outlining an offer to be engaged as NYRT's external advisor.

Meanwhile, investor Rambleside Holdings has sent the REIT a letter—which it made public—from president Gregory Cohen that piggybacks on the missive sent Wednesday by Sorin Capital Management. Cohen's letter follows a note sent on June 10th that also expressed concerns.

Rambleside's newest letter says, in part, “As among your largest shareholders with 1.2 million shares of NYRT, Rambleside Holdings (and Cohen family affiliates) also is very disappointed with the current situation. At this time, it is appropriate to discuss how you and the board can ensure shareholders realize full value for our company.

“Rambleside believes NYRT trades at a discount of at least 40% to true NAV. This is shocking given you have assembled a world-class portfolio of assets. The only way the Board can demonstrate its commitment to shareholders is to commence a sale or liquidation process immediately.”

Cohen continues, “It's almost embarrassing NYRT trades at a 5% dividend yield when comparable Class A Office REITs trade closer to a 2% dividend yield and significantly closer to NAV.”

After outlining several other issues, he asserts, “The only way the Board can demonstrate its commitment to shareholders is to commence a sale or liquidation process immediately.”

For its part, First Winthrop says it sent its letters “recently”—though it's not clear exactly when it did so—but has come forward now after failing to receive a satisfactory response.

Says Michael Ashner, First Winthrop CEO, "We were hopeful that NYRT's Board would engage us in conversation. Unfortunately, the response received from their counsel to our first letter stated 'the board has determined that pursuing the proposal outlined in the letter is not in the best interests of [NYRT] and its stockholders and is not interested in in further discussions.' That was followed by a lack of response to our second letter, necessitating the disclosure of our proposal to the public."

When contacted by GlobeSt.com for comment, NYRT representatives stood by the statement released by the company on Wednesday following its receipt Sorin's open letter that expressed concerns over the gap between the REIT's stock price and value.

That statement reads, “The NYRT board of directors and management team are committed to acting in the best interests of the company and all NYRT stockholders. The company welcomes open communications with its stockholders and values their input toward the shared goal of enhancing stockholder value. Our board of directors and management team are actively pursuing several previously announced strategies that should allow the company to maximize long-term stockholder value. We look forward to continuing our dialogue with all NYRT stockholders as we continue to take actions to achieve this important objective.”

Instant Insights /

Trouble Continues for New York REIT

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