- Shares two potential strategies to address ALX's
underperformance
- Looks forward to shareholder feedback and stands ready to work
constructively with the Board to find a value-maximizing outcome
for shareholders
NEW
YORK, July 27, 2022 /PRNewswire/
-- Lionbridge Capital, LP (together with its affiliates,
"Lionbridge"), an alternative investment management firm and
significant shareholder of Alexander's Inc. ("Alexander's," "ALX" or the "Company") (NYSE:
ALX), today issued an open letter to Alexander's shareholders outlining its views
and concerns regarding the current state of the Company's
affairs.
Lionbridge has been engaged in a private dialogue with the board
of directors in effort to address the issues hindering the stock
performance. Today, it is publicly sharing its ideas in order to
facilitate a broader discussion regarding the best path forward for
ALX and looks forward to receiving feedback from shareholders on
its ideas.
According to Lionbridge's letter, Alexander's has significantly underperformed
its relevant indices for over a decade, with material
underperformance prior to the coronavirus pandemic as well. Based
on its extensive diligence on Alexander's assets, Lionbridge estimates the
Company's Net Asset Value is conservatively over $425 per share, 80% greater than the current
price, and attributes ALX's persistent low market valuation to (i)
the lack of a clear, shareholder-focused, value-creating strategy,
(ii) an overcapitalized balance sheet, (iii) substandard corporate
governance, and (iv) a nonexistent investor relations
program.
In its letter, Lionbridge suggests two potential strategies that
it believes will maximize value for shareholders and that the
Company should actively explore. One potential pathway is the
implementation of a multi-step plan, as detailed in the letter,
which includes the following concrete steps:
- Internalize management and appoint a dedicated leadership team
that will be focused solely on optimizing Alexander's portfolio and accretive growth
opportunities;
- Optimize capital structure and return excess capital to
shareholders;
- Refresh Board with appointment of new independent directors;
and
- Improve investor disclosures and communications.
According to the letter, another potential pathway is for the
Company to commence a strategic review process, including a
possible take-private transaction. The letter further provides that
Lionbridge believes it has identified interest from an
institutional investor that has indicated it is willing to purchase
ALX outright at a significant premium to the current trading price
or to participate alongside Vornado in a squeeze-out merger. If
conducted properly and transparently, Lionbridge believes a
strategic review process could attract additional qualified
bidders.
The full text of the letter can be viewed at the following link:
Letter to ALX shareholders
CONTACT:
Greg Morillo
Lionbridge Capital LP
Email: greg@lionbridgecap.com
Tel: (212) 300-8003
View original
content:https://www.prnewswire.com/news-releases/lionbridge-issues-open-letter-to-alexanders-shareholders-301594720.html
SOURCE Lionbridge Capital LP