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Monmouth Real Estate Investment Corporation (MNR-PC)

NYSE - NYSE Delayed price. Currency in USD
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25.220.00 (0.00%)
At close: 4:00PM EDT
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  • S
    Saul
    Not surprised by the reaction of shareholders to reject the current management of Monmouth to sell to Equity, It was all about Landy and what was good for the Landy family. (as usual) Thanks for spending 72
    million dollars of shareholders money for the termination penalty. I have written directly to your company
    over the last 5-6 years and not once have you had the courtesy to respond. Shareholders unite.. let change the board of directors from the old establishment with commitments to the family to having directors having commitments to the shareholders...
  • A
    Anonymous
    Starwood Capital is said to be considering what it will do next after Monmouth Real Estate Investment (NYSE:MNR) failed to receive enough votes from holders for a sale to Equity Commonwealth (NYSE:EQC), according to a CTFN report.
    Equity Commonwealth terminated its deal yesterday after failing to win the the votes necessary to takeover Monmouth (MNR).
    Starwood Capital last month raised its bid to $19.20/share for Monmouth (MNR), though Monmouth said it believed the EQC bid was superior.
    Blackwells Capital is said to be ready to move ahead with its proxy battle, according to the CTFN report.
    Recall in April, Blackwells nominates four to Monmouth Real Estate board.

    Seeking Alpha
  • M
    Mark
    Thanks for the discussions Anon and Roger. Any idea why Michael Landy wants to sell anyway?? Or if Michael wanted out, why Sam Landy didn't take over (in addition to UMH)? Gene is really getting up there in years, so it's easy to see how he would want to step back. Or just hire a new CEO and let him run the company.
  • A
    Anonymous
    Monmouth Real Estate Investment's (NYSE:MNR) board restarts its strategic review and will "consider all viable proposals, including proposals submitted by Starwood Capital or other potential counterparties."
    The announcement comes after the REIT's agreement to be acquired by Equity Commonwealth (NYSE:EQC) fell apart when MNR shareholders voted against the proposed combination.
    "Importantly, the company is no longer subject to the restrictions that were in place under the prior merger agreement regarding engagement with third parties, solicitation and proposals," the company said in statement.
    Monmouth's (MNR) board hired Wachtell, Lipton, Rosen & Katz to assist with the process.
    The company will also set record and meeting dates for Monmouth's annual meeting of stockholders "in due course."
    On Aug. 24, MNR's board rejected Starwood's increased bid of $19.20 per share, saying it didn't constitute a superior bid to Equity Commonwealth's deal, which offered $19.00 per share in cash or 0.713 shares of EQC stock.
    SEEKING ALPHA
  • R
    Roger
    Even though I believe MNR value is north of $20 a share, I don't think we'll see a company put in a offer that high.... especially when the market appears to be getting a little shaky right now.

    All these companies (EQC, STWD, Blackwells) have shown their hands. Blackwells can say all they want about MNR being worth $26 to $30 a share, but remember, they aren't currently bidding and haven't demonstrated that they are willing to go any higher than $18 a share.

    Blackwells currently owns more than 4% of the MNR shares. They put some of their own people on the MNR board. They're intent was to quietly get a majority on the board to approve the sale of MNR to them. The last thing they want is a bidding war right now for MNR.

    I believe this is why the MNR board is trying so hard to sell now before the inevitable happens (an even lower sale to Blackwells).

    Blackwells will say anything right now to try and stop the sell to EQC or STWD.

    I'm not trying to convince any MNR investors to approve or reject the latest offer, but please do your own thorough research and don't believe the rhetoric from Blackwells. If they really believe MNR is worth $26 to $30 a share, then why aren't they bidding something higher than their initial $18 bid?
  • t
    too good
    Contrary to the tag line here that Zell's interest in MNR reflects value in industrial real este...NO. It reflectsMNR management FAILURE to max opportunities! MNR shareholersmade BAD vote to refuse Zell! Back to 16! Management is terrible...thats why its Board want merger, not buy-out!
  • R
    Roger
    EQC raises bid for MNR. My best guess is that MNR let EQC know that it's shareholders weren't going to vote for the merger based on getting only 0.67 of EQC shares for each MNR share they own.

    MNR stockholders will now have the option to either receive $19.00 of cash or 0.713 shares of EQC stock for each share of MNR they own. That cash offer is now higher than the final amount that STWD had proposed (since STWD's $19.51 per share price had to include a EQC Merger Termination fee...so the end payout would have been $18.88 a share).

    Special shareholder meeting on August 30. The proposed merger is set for September 6.

    Make sure you vote!
  • J
    John
    MNR's capitalization, as shown on Yahoo finance, is under 2 billion. Gamestock's cap as shown on Yahoo finance is over 14 billion. Talk about crazy. MNR should be valued much higher. Look at the cap on other stocks also. MNR undervalued. Should command more than Zell is offering, a lot more.
  • R
    Roger
    I personally don't believe that either offer from EQC or STWD offer good value to current MNR investors.

    EQC's share value has dropped about 10% since announcing the acquisition of MNR. MNR Investors would get .67 shares of EQC for each of their shares. At today's price, that means MNR investors would get an equivalent of $17.45 per shares. I also don't know what the new dividend would be, but I suspect it would be less than we are getting now. For me, that means this scenario is a lose - lose one.

    So anyone arguing that MNR shares would go down to $17 if the merger doesn't happen. I think everyone needs to understand that they "might only" get about $17 a share if the merger does happen.

    The problem here is management at both MNR and EQC. Neither Board of Directors are really looking out for the shareholders. I believe they are much more concerned about their money than the shareholder's money.

    The STWD option isn't appealing to me because it is a cash offer and not a stock offer. I already own STWD and would be very happy to get more shares if they offered a reasonable offer. For me, that offer would need to be no less than .80 a STWD share for each MNR share. This way, I would also get future dividends that are currently much higher than the MNR dividend.

    I'm not trying to convince anyone to do anything, but at the very least, please take this vote seriously and do your own investigation. If you aren't 100% sure this merger isn't in the best interest of your investment goals, I would suggest you vote no at this time. Please understand that this is now the 3rd offer MNR has received in the last year or so. With that much interest, I have to believe that there will be others offers in the future (even though I don't have 100% confidence in MNR management to do the right thing).
  • A
    Anonymous
    LMRK buyout started @$13.00, today, the bid is $16.50(full value) in cash... my gut tells me MNR is going higher... over $20+
  • R
    Roger
    I found these comments from MNR board very interesting:

    "MNR board organized and ran a reasonably thorough process that reached out to over 90 potential acquirors, resulted in four competing bidders, and featured multiple rounds of offer improvement."

    To me, sending out so many inquiries sounds like a companyy that is desperate to sell. I would think any interested company would most likely put in lower than fair offer under such circumstances.

    I would personally like to see those other offers, but like I said, I doubt any would be a fair offer under the conditions of the solicitation.
  • R
    Roger
    Shareholders voted against the EQC merger.

    I'm not 100% sure this is a good thing or a bad thing. I believe that MNR is worth more than either EQC or STWD were offering, but I'm now concerned that Blackwells will get a majority on the MNR Board of Directors. If they get that, than they may be able to take MNR private like they wanted to do back in December for $18 a share.

    You have to remember that Blackwells owns almost 5% of the MNR shares. With that much pull, they can possibly pull it off.... shareholders be damned.
  • J
    John
    I find it amazing how the market values companies. MNR Yahoo finance puts the market cap at
    1.873 billion. MNR is a sound co., making money, over 50 years old. The look at FFIE whose market cap is 3.085 billion----this co. has NEVER made a penny and is trying to break into the auto market. It has never manufactured a car, and my guess is will never produce a car. Never made a penny, yet the market capitalization is over 1 billion higher than MNR. Try to figure that one out. It does not compute.
  • t
    too good
    shareholders voting agains the $19 cash/stock merger with EQC will regret that decision...big time. STWD or other is not ging to give you a gift now! EQC is a buy now...with $72M of mnr break-up fee well deserved!
  • A
    Anonymous
    Blackwell rejected Zell's new offer... my hunch on the new bid is going to be over $20+
  • M
    Michael
    Can anyone make sense out of the Blackstone presentation?
    It says Monmouth has a history of value destruction, yet a $10,000 initial investment in Monmouth would now be worth well over ½ million (dividends included).
    Then complains about employee’s compensation being mostly from base salary rather than incentive and bonus programs. I am thinking that was due to Monmouth’s objective of being successful for the long run and not just a quick hit.
    It goes on to state that Monmouth has a failed corporate governance and implies the board can’t be trusted.
    Why would Blackstone invest $78,000,000 into a company that has a history of value destruction and can’t be trusted?
    EQC will need to sweeten the pot but common Blackstone really…
  • R
    Roger
    It looks to me that the market believes that shareholders are going to vote against the EQC merger. With Blackwells holding nearly 5% of MNR shares, we know how they will vote and they are strongly encouraging everyone to vote against the merger. They also have a lot of pull with the institutions that hold MNR shares Remember, Blackwells have their own agenda here and are not looking out for what is best for the MNR investors. They want MNR for as cheap as they can get them.

    I think this is a "Lose - Lose" situation for MNR investors. In my opinion, neither EQC or STWD have offered enough for MNR. I also don't believe that either company will offer anymore than they've already proposed.

    What will happen then? I suspect the MNR share price will drop under $18. It will just sit there for a while until Blackwells are able to take over the MNR Board of Directors and takes MNR private sometime in the future for much less than $19 a share. That means no future dividends from this investment and possibly a tax hit if the shares are held in a taxable account.

    I'm not trying to sway anyone on how they vote, but I'm not liking the choices I've been given so far. I'm just concerned that there won't be any choices later. I think some of the smartest MNR investors already got out when the price was in the upper $19's.

    Good luck to us MNR Investors.
  • M
    Michael
    Wow so did the market tell us today a lot about the prospects of the merger?
    Today was the X dividend date for the Preferred C, meaning the people who held the stock at the close of business yesterday get the 38.3 cent dividend unless the merger goes through before the end of August. So based on the $25.25 close today (sold most my shares at $25.26) whoever paid that price of $25.25 will lose money if the merger happens before November. Almost $5,000,000 worth of the preferred C changed hands today. The shares won’t start accruing interest again until September and if called on the call date (September 15) will pay $25 plus 5.3 cents interest.
    Someone is really banking on the shares not being called anytime soon…either that or someone made a horrible mistake. Anybody have any thoughts on the matter?
  • A
    Anonymous
    I voted all 3 proposals - against the merger
  • t
    too good
    If existing management is "terrible". and, board rejected cash sale of 19 to STWD...WHY dvote to keep managing company without a proposed alternative, Is Zell a bad fiduciary? NO!