Owens Realty Mortgage Inc.'s largest shareholder, Freestone Capital Management LLC, has sent the company's chairman and its board a letter advising management to explore immediate liquidation.
Freestone Capital said Owens Realty Mortgage has provided a total return to shareholders of approximately negative 15.7% from Jan. 1, 2009, to May 31, 2017. That compares to returns by the FTSE NAREIT Mortgage REIT Index of 161.3% and the Russell 2000 Index of 207.7% over the same time frame, Freestone Capital said.
The investor also took issue with the company paying its manager a total of $28.1 million in compensation while reporting an operating loss of $7.2 million from 2010 to 2016.
The majority investor is advising the company to liquidate its assets and close the gap between its current market price of $16.38 per share and the estimated $23.50 liquidation value.