Seniors Housing Weekly Update - The Battle For Brookdale

March 24, 2015

March 24, 2015. 60 Seconds with Steve Monroe. Shareholders are taking it up a notch to raise the value of Brookdale Senior Living...

The Battle For Brookdale

In World War II we had the Battle of the Bulge, and in seniors housing, we now have the Battle for Brookdale. Sandell Management, which owns about 2 million Brookdale shares, has nominated three directors, including Tommy Sandell himself, to help the company maximize shareholder value, claiming current directors have little real estate expertise, and in one case seem in imply that one current director, who they want to replace, is too old by stating his age (77). Tell that to Jim Moore. Now, Glenview Capital Management, which has upped its ownership from 8.75 million shares three months ago to 11.59 million shares today, may have joined the fray, but their SEC filing claims they are passive investors. The goal is to enhance shareholder value by unlocking the real estate value as a result of today’s record-shattering valuations. Sandell believes that spinning off the owned real estate to a new REIT will increase the total share value to $49. Perhaps. But there are other ways to skin a cat. It just may take longer but will result in a healthier Brookdale in the long term.

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