- Forest City Realty (NYSE:FCE.A) gained 2,8% yesterday after Jonathan LItt's Land and Buildings declared the stock "investable" for the first time in 25 of years of following the name. Litt thinks there's more than 40% upside to NAV.
- The company in December announced big corporate governance changes and the elimination of its dual-share structure.
- Pleased with those moves, Litt says there remains plenty of work to be done to realize value - depressed margins, bloated G&A, value-destroying capital allocation and nepotism are still the norm, he claims. The board needs to be revamped.
- Responding, Forest City says eight on the 13-member board will be independent after the share reclassification. There are two spots left to fill and it's hired an outside firm to search for candidates.