UPDATE 1-Elliott urges REIT Healthcare Trust of America to explore sale

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(Adds HTA’s response in paragraph 8)

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Oct 11 (Businesshala) – Activist investor Elliott Investment Management on Monday urged Healthcare Trust of America to launch a strategic review and explore a possible sale of the real estate investment trust.

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Elliott, one of HTA’s biggest investors, said the company’s long-running underperformance compared to its peers has caused disappointment and shareholders want it to target the sale. HTA shares were up 2.1% at $32.38 in afternoon trading.

The news came months after HTA chief executive Scott Peters stepped down, which Elliott described as “sudden and unexpected”.

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Elliott said in a letter, “HTA faces a challenging stand-alone future, characterized by a deprived ability to compete for acquisition targets, the inherently risky task of identifying and integrating a new CEO, and the company’s culture.” It’s a tough mission to repair and rebuild.” on the board of HTA

HTA, which invests primarily in real estate consisting of medical office buildings, is currently headed by interim CEO Peter Ann Foss.

Investors believe HTA should review bids, including solicitation, before making a decision about its new CEO, Elliott said, warning the absence of such a review could attract a suitable candidate for the position. It will be difficult to do.

Elliott said it was confident that “highly credible buyers” would make the offer at a substantial premium to the current trading price of HTA stock.

In response to the hedge fund’s letter, HTA said it had held several discussions with Elliott’s representatives when it was first contacted by the firm and shared the information with its full board. (prn.to/2YHKgtX)

“We are open-minded and committed to delivering superior returns to all HTA shareholders,” HTA said.

Businesshala News first reported on Elliott last week insisting on HTA’s strategic review. (Reporting by Amrita Khandekar; Editing by Shinjini Ganguly and Shailesh Kuber)

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