Bloomberg reports that activist Jonathan Litt is proposing that Brookdale Senior Living (BKD +1.9%) be split into a real estate investment trust (REIT) and an operator of senior housing.
In a conference call two days ago with Chairman Lee Wielansky and CEO Cindy Baier, he said that moving the company’s best properties into a REIT would unlock significant value.
BKD operates almost 1,000 facilities in 46 states. Shares are currently exchanging hands at $8.50, a modest 1.8 price/book ratio. Competitor Capital Senior Living (CSU -2.8%), for example, currently trades at 4.5x book.
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