L&B urges sale of BRE Properties; nominates 6 to board

|About: BRE Properties, Inc. (BRE)|By:, SA News Editor

"BRE Properties (BRE +0.4%) has chronically underperformed its closest comparables by a number of measures, including total returns, net operating income growth, FFO growth and dividend growth," says Land and Buildings CEO Jonathan Litt, urging the company to explore a sale in light of yesterday's report of Essex Property Trust's (ESS +1.3%) offer to buy for about $5B.

"Selling the company to a best-in-class operator such as Essex would present an opportunity for BRE Properties’ shareholders to realize the potential of the company’s intrinsic value ... On behalf of all shareholders, we demand that the Board exercise its fiduciary duties and maximize shareholder value by exploring a sale of the company.”

L&B also announces its nomination of six candidates to the board. If elected, they would constitute a majority.

"We believe that our high level of frustration with the company’s poor track record is reflective of the views of many of BRE’s shareholders. We have been engaged with BRE’s management for over a year and BRE’s Board since August about ways to drive shareholder value, including full operational and strategic reviews." BRE this summer rejected a $60 per share bid from L&B.