A stockholder proposal for Consolidated-Tomoka Land Co. to explore all options to maximize shareholder value will be up for a vote at the diversified real estate company's annual shareholder meeting scheduled for April 25.
Wintergreen Advisers LLC and Wintergreen Partners Fund LP are proposing that Consolidated-Tomoka hire an independent, unaffiliated adviser to help it explore a company sale or asset liquidation as a way to narrow the discount between the company's share price and its net asset value. Wintergreen also urged against converting to a real estate investment trust, arguing that such a move mainly works to entrench management and might have serious tax implications for stockholders.
"During one of the greatest bull markets in real estate over the last three years, CTO's stock price has gone nowhere. It is time to realize full NAV for shareholders and to stop rewarding management for what we view as a failed strategy," the shareholders argued.
Consolidated-Tomoka, however, said its board believes that the company should continue pursuing its business plan to convert its land assets into income-producing properties via tax-deferred exchange deals, given its ample pipeline of potential land transactions.
Wintergreen is deemed to beneficially own 1,543,075 shares of Consolidated-Tomoka's common stock, according to a March 12 filing.
