Whitestone REIT is in a big fight with Erez Asset Management, showing how tense things are getting between real estate investment trusts (REITs) and investors who want to make changes.
Erez, which owns 1.3 percent of Whitestone, wants to change who’s on the REIT’s board. They want their two people, including their founder, to be elected.
They’re not happy with some of Whitestone’s decisions, like turning down a takeover offer from Fortress Investment Group and selling assets for less than they’re worth. This fight is part of a bigger trend where investors are challenging REITs on how they run things and make money.
The Big Deal
The battle between Whitestone and Erez isn’t just about who’s on the board. It’s about bigger problems in the REIT world. Erez says Whitestone has been buying expensive and selling cheap, which hasn’t been good for shareholders.
They want Bruce Schanzer, their founder, and Catherine Clark on the board, but Whitestone wants to keep its old members. This fight is expensive. Whitestone has already spent $400,000, and it could go up to $1.2 million.
It makes us wonder whether companies should focus on making money now or plan for the long term, especially when the real estate market is unpredictable.
More Investors Speaking Up
The Whitestone-Erez fight is part of a bigger trend where investors are getting more involved in how REITs and other investments are run. Just like when Saba Capital challenged BlackRock’s management, these fights are happening more often.
Investors like Erez and Saba don’t just want better operations; they also want clearer rules, better leadership, and changes to make shareholders happier. These fights show that company bosses and investors often see things differently when it comes to making companies better for everyone.
What This Means for Real Estate
The battle between Whitestone REIT and Erez Asset Management, along with others like it, shows that investors are getting more active in real estate.
These fights can lead to big changes in how companies work, who’s in charge, and even how they do business. For everyone who invests in real estate, these fights show that it’s important for companies to listen to what shareholders want, especially in a market where one wrong move can be costly.
They also show that investors like Erez and Saba are getting more power to change how companies are run, which could mean companies need to work harder to make and keep their value.
