Land & Buildings calls for board refreshment at Apartment Income REIT

Land & Buildings Investment Management LLC is calling on Apartment Income REIT Corp. to refresh the majority of its board members and form a special board committee that will review strategic alternatives for the real estate investment trust.

The shareholder, which owns a significant stake in the REIT, claims the company has failed to close the gap to NAV, even after spinning off from Apartment Investment & Management Co. Apartment Income's shares trade at $39 compared to its disclosed NAV of $50 per share, Land & Buildings said in a letter addressed to Apartment Income's board.

Land & Buildings is also urging Apartment Income to study strategic alternatives, including an offer from Westdale Asset Management LLC that it believes was at a substantial premium and close to Apartment Investment's NAV. The activist believes many bidders would emerge given the high demand for quality apartments.

Westdale was reported in December to have approached Apartment Investment with an all-cash takeover offer at a premium to the target's market value of about $4.7 billion prior to the approach being revealed. At the time, Apartment Investment disclosed it received a takeover proposal from an unnamed party. The company's board deemed the offer inadequate and the company proceeded with separating its business into two separate public companies.