An activist investor pushing for change at Brookdale Senior Living has put forward a slate of three nominees for the company's board to help usher in a corporate restructuring.
Sandell Asset Management, a 1.25% shareholder, is pressing the Brentwood, Tenn.-based senior housing operator to separate its real estate portfolio into a real estate investment trust and distribute it to shareholders in a tax-free spinoff.
The board slate includes the hedge fund's founder and CEO, Thomas Sandell.
“Senior living real estate valuations are at an all-time high, and given the robust multiples we are seeing via M&A in the real estate sector, any argument seeking to claim that now is not the right time for a transaction, or that it 'may not be in the best interest of shareholders,' rings hollow to us,” Sandell said in a statement.
Brookdale CEO Andrew Smith emphasized during an earnings call last month that the company will continue to consider options for its real estate portfolio, but has decided to focus first on integrating its acquisition of Emeritus Senior Living, which closed last July.
