New York City REIT stock climbs after activist investor urges board change

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• New York City REIT (NYSE:NYC) stock surges 12% after Comrit Investments 1 LP sends a letter pushing for boardroom change to other NYC REIT shareholders.
• Comrit, which owns 267,520 shares of New York City REIT's (NYC) class A common stock, contends that the board is more concerned with paying its external adviser and limiting stockholders' rights rather than developing a value-enhancing strategy.
• Comrit points to the REIT stock's 60% drop in the 15-month period ended Nov. 30, 2021, the day before Comrit announced the nomination.
• It also says that the REIT's chairman and CEO, Michael Weil, has a conflict of interest in that he's also CEO of AR Global and the CEO of NYC REIT's (NYC) external adviser and property manager.
• "We question how a fully engaged and truly independent Board could allow Mr. Weil to ink a generous advisory deal in favor of AR Global, which automatically renews for successive five-year terms and entitles the advisor to a $15M+ early termination fee, at the expense of the Company’s stockholders," Comrit Managing Partner Ziv Sapir said in the letter to stockholders.
• In early December, Comrit nominated Sharon Stern for NYC's board. She serves on the board of Cedar Realty Trust (NYSE:CDR). New York City REIT (NYC) stock soared 60% in the past month, since the nomination was disclosed.
• Sapir also notes that the REIT refused to discuss Stern and plans to oppose her candidacy.
• In other activist investor news, Dollar Tree (NASDAQ:DLTR) last month proposed a settlement with Mantle Ridge.