Activist shareholder Land & Buildings Investment Management LLC said it will withhold its vote for QTS Realty Trust Inc. Chairman and CEO Chad Williams' election to the board at the company's annual meeting May 3, unless the board publicly commits to certain actions addressing QTS' "underperformance."
In a March 5 letter to shareholders, Land & Buildings founder Jonathan Litt cited the data center-focused real estate investment trust's "more than 100% share price underperformance" and "approximately 50% earnings growth underperformance" versus its peers since it went public in 2013, as the basis for its plan.
Litt also took a swipe at the company's dual share structure, saying it disenfranchises the majority of shareholders.
Litt said Land & Buildings may reconsider its decision if the board will express an intention to, among other actions, substantially refresh its membership, opt out of the Maryland Unsolicited Takeovers Act and evaluate strategic alternatives.
