(Reuters) - Land and Buildings Investment Management LLC on Monday asked NorthStar Asset Management Group Inc NSAM.N to shake up its board and to extend the deadline to nominate directors by three months.
Land and Buildings, an activist hedge fund run by former Citigroup REIT analyst Jonathan Litt, said the drop in NorthStar’s stock price is due in part because it is an externally managed Real Estate Investment Trust (REIT), a sector that has fallen out of favor with investors.
NorthStar’s stock has fallen by around half since March of last year.
NorthStar earlier on Monday said it had retained GoldmanSachs & Co as its financial adviser to evaluate strategicalternatives. Litt in his letter dated Monday asked for the director nomination deadline extension and said NorthStar’s board needed to be “significantly reconstituted” to maximize shareholder value.
Litt has targeted several REITs, and earned huge returns with the approach.
Land and Buildings Capital Growth fund returned a whopping 24.7 percent to its investors last year, according to the firm’s investor letter, which was seen by Reuters.
Reporting by Michael Flaherty; additional reporting by Ankit Ajmera; Editing by Bernard Orr