- Jonathan Litt's Land and Buildings disclosed a 7.4% stake in American Residential Properties (NYSE:ARPI) on Friday, and today pens a letter to the company threatening to nominate its own slate of board members if a clear path to NAV realization isn't outlined or achieved.
- Said NAV is thought to be $24 per share, according to Litt, versus Friday's close of $16.71. At issue, says Litt, is scale - ARPI owns more than 1K homes in only 4 of the more than 17 MSAs in which it operates, and more than 300 in only 10 of those markets. Given the company's already high debt level and struggling stock price, exactly how is it, asks Litt, that APRI expects to raise the money with which to achieve a critical mass of properties in all of its markets?
- Source: Press release