Still, L&Bs narrative is largely refuted, in our view, by the fact that
Aimco initially set out its strategy and objectives for investors more than a year ago, in October 2021, and has provided key updates for investors along the way, including in both February 2022 and June 2022, in addition to quarterly earnings
On the Strength of Aimcos Incumbent Directors:
Lastly, with respect to the incumbents who L&B is opposing this year, we take note of Mr. Steins accounting, executive,
and business separation experience, as well as his role as chairman of the investment committee currently leading the boards review of options to further enhance value, and Mr. Stones real estate development experience and role as
chairman of the governance committee, where he has demonstrated a responsiveness to investor concern by enacting a number of governance improvements. In our view, the expertise and experience of the incumbent directors up for re-election this year remains crucial to Aimcos progress and forward plan.
Based on our meeting with Mr. Leupp and other Aimco board members, we believe he and the board are committed to further enhancing
Aimcos investor relations and communications. And the board appears well equipped to do so, in our view, given Mr. Leupps experience and perspective.
Although L&B has called out Mr. Stone, as chairman of Aimcos governance committee, for not pressing for the immediate de-staggering of the board or other governance improvements earlier, the fact that he and the board have since shown responsiveness to investor feedback by adopting various governance reforms (as detailed above)
suggests to us that Mr. Stone is more likely part of the solution than any ongoing problems on the Aimco board.
also find Aimcos investor relations and capital allocation primary complaints of the Dissident and the areas where its nominees would presumably make their biggest contributionsto already be in capable hands and not nearly as
lacking as L&B has alleged, significantly undercutting the candidacies of L&Bs nominees, in our view.
Land & Buildings Nominees:
On the other hand, the first of L&Bs nominees, Ms. Applebaum, comes
from a background in the steel industry, first as an analyst and then a director, with no relevant real estate or REIT experience. We also note she is a perennial L&B nominee, having been nominated by the investor in three prior instances yet
never elected by shareholders or otherwise appointed to those boards.
While Mr. Sullivans experience seems
much more suited for Aimco, we consider it is also largely duplicative by virtue of Mr. Leupps presence on the Aimco board, who has significant real estate and REIT experience from an investor perspective, as well as additional, current
board experience at another public REIT. Given this would be Mr. Sullivans first public company directorship (which is not a disqualifying factor on its own, in our view) and considering his perspective is largely replicated by
Mr. Leupp and the Companys ongoing advisory relationship with Green Street, where Mr. Sullivan previously led the advisory practice, we see a reduced need for his perspective at this time.