A group of AltisourceResidential Corp. stockholders has re-emphasized its concernsover the company's external management structure and current board makeup.
In a letter made public April 12, the group called the single-familyREIT's board "highly conflicted and unqualified" to operate the company.The group, in particular, believes that the board is operating Altisource Residentialin a way that primarily benefits Altisource Asset Management Corp., the company'sexternal manager, and Altisource PortfolioSolutions SA, its external services provider, through the payment ofsubstantial fees.
The group argued that the company's board nominees, as disclosedin a preliminary proxy filing,will only preserve such a "value destructive" set-up.
The investor group, which owns about 2.4% of Altisource Residential'soutstanding shares, recently nominated its own candidates for the board, arguingthat the REIT's board is in "desperate need" of independent directorswho have the shareholders' best interests in mind.
Altisource Residential's management strategy, meanwhile, hasreceived support fromPutnam Investments and Luxor Capital Partners, which own respective stakes of 14.9%and 7.6% in the company. Altisource Portfolio Solutions, which a 5% beneficial ownership in theREIT, also disclosed plans to vote its shares in favor of the REIT's board nominees.