By GEERT De LOMBAERDE
This story first ran in our sister publication the Nashville Post.
The principal manager of the investment firm that’s been sparring with Brentwood-based Brookdale Senior Living for the better part of three years had told the company he will not seek a board seat after all.
Jon Litt, who founded Land & Buildings Management in 2008, on Friday withdrew his director nomination. Land & Buildings, which controls 4 percent of Brookdale shares and already has a designated board representative courtesy of a 2017 deal, is still pushing forward longtime health care real estate investment trust executive James Flaherty for a board seat.
Litt nominated himself and Flaherty July 2 after Brookdale said two veteran directors would not stand for re-election. (The company has since put forward two candidates to fill those openings.) Litt has long criticized the company’s relative underperformance and lagging stock price — in part a legacy of its 2014 acquisition of rival Emeritus Corp. — and has called for major governance and strategic changes, led by the separation of Brookdale’s operating business and its real estate holdings.
Flaherty, 62, is based in Los Angeles and its managing partner of two-year-old Corby 2.0, which invests in health care and health care real estate projects. Before that, he was chairman and CEO of large health care real estate investment trust HCP fro 2003 to 2013 and led the NorthStar Healthcare Income REIT for most of 2014.
Shares of Brookdale (Ticker: BKD) were down 1.8 percent to $8.01 heading into the close Monday. Over the past six months, they have risen about 15 percent but they are still down almost 20 percent year over year.