By UNITE HERE issued a report recommending that shareholders of Inland American Real Estate Trust vote NO on current proxy proposals. Inland American has asked shareholders to approve a raft of changes to the company's Charter. The Trust has not explained to shareholders its specific plan for providing investors with liquidity, explains UNITE HERE in a new report.
The report analyzes how some of the proposed changes run counter to the practice of many publicly-traded REITs and could drive down the market value of the company. These changes could make it more difficult for investors to have a voice in how the Trust provides an exit for their investment.
Nearly $1.4 billion in fees have already been incurred for the benefit of Inland insiders, according to UNITE HERE. Inland American's original investors purchased stock at $10 per share, and the shares have recently been valued at less than $7. The Trust has also told shareholders that prior to any liquidity event, it may streamline operations by acquiring its business manager. It has failed, however, to provide a roadmap for liquidity and has not put a price estimate on a potential buyout of the manager.
UNITE HERE argues that the Trust's request for such substantial governance changes without corresponding information regarding its planned exit essentially amounts to a request for a blank check. Shareholders should decline to write that check by rejecting the Trust's governance changes with a NO vote.
To view or download the free report, go to http://www.inlandinvestoralert.org/reports/
UNITE HERE is a union representing over 275,000 employees in the hotel, food service, and gaming industries. Its members are beneficiaries of pension funds with over $60 billion in assets. We believe investors and employees alike are better served by strong corporate governance practices. UNITE HERE Local 19 has a labor dispute at a hotel owned by Inland American.
UNITE HERE
Mike French, 415-626-7521
