AR Global’s New York REIT Suspends Dividend
AR Global-managed New York REIT Inc. (NYSE: NYRT), a former non-traded real estate investment trust known as American Realty Capital New York Recovery REIT, announced that in light of the company’s previously announced plan of liquidation, its board of directors has determined that the company will not pay a regular dividend for the month of November 2016 and does not currently expect to pay a regular monthly dividend for the month of December 2016.
The board recently approved a plan to dissolve and liquidate the company after terminating its proposed merger with JBG Companies following a wave of investor criticism. The company said that if the plan is approved by NYRT stockholders, the company intends to make periodic liquidating distributions, subject to satisfying its liabilities and obligations, in lieu of regular monthly distributions. If the plan is not approved by stockholders, the board will re-evaluate the dividend policy.
Late last week, the REIT announced that it will terminate its advisory agreement with a subsidiary of AR Global, the successor to Nicholas Schorsch’s AR Capital, effective December 26.
New York REIT is currently evaluating 14 management proposals it received after issuing a request for proposals for all interested, qualified parties to serve as its external manager. AR Global has submitted a proposal, but the REIT has not yet decided whether it will sign a new advisory agreement with the advisor or another party.
After months of publicized backlash over its handling of the proposed merger and other management decisions, New York REIT entered into a settlement agreement with dissident investors Michael Ashner, Steven Witkoff, and their jointly owned entity, WW Investors LLC. The company agreed to expand its board of directors to include James Hoffmann, Gregory Hughes and Craig Bouchard as new independent directors and will also opt out of the Maryland Unsolicited Takeover Act. As part of the deal, WW Investors agreed to vote its shares in support of NYRT’s slate of nine director nominees at the company’s 2016 annual meeting of stockholders.
NYRT is a publicly traded real estate investment trust that owns 19 commercial real estate properties, including office and retail properties, located in New York City. Shares of NYRT closed at $9.46 on Friday.
