Comrit Investments 1, LP, together with the other participants named herein (collectively, “Comrit”), has filed a preliminary proxy statement and accompanying WHITE proxy card with the Securities and Exchange Commission to be used to solicit votes for the election of its highly qualified independent director nominee at the 2022 annual meeting of stockholders of New York City REIT, Inc., a Maryland corporation.
On March 14, 2022, Comrit issued the following press release.
Comrit Investments Files Preliminary Proxy Statement in Connection with New York City REIT’s Annual Meeting
Believes a New, Independent Director Is Required to Help Address NYC REIT’s Exceedingly Poor Corporate Governance, Perpetual Underperformance and Sustained Discount to NAV
Calls on the Board to Establish a Date for the 2022 Annual Meeting so Stockholders Can Take Steps to Have Their Voices Heard
Encourages Stockholders to Visit www.RebuildNYCREIT.com and Review Comrit’s Preliminary Proxy Statement
NEW YORK & TEL AVIV, Israel—(BUSINESS WIRE)—Comrit Investments 1, LP (together with its affiliates, “Comrit” or “we”), a long-term stockholder of New York City REIT, Inc. (NYSE: NYC) (“NYC REIT” or the “Company”), today announced that it has filed a preliminary proxy statement with the U.S. Securities and Exchange Commission (“SEC”) in connection with the nomination of Sharon Stern, a highly qualified and independent candidate with significant real estate experience, for election to the Company’s Board of Directors (the “Board”) at the 2022 Annual Meeting of Stockholders (the “Annual Meeting”).
Stockholders can visit www.RebuildNYCREIT.com for information pertaining to our campaign and to review the preliminary proxy filed with the SEC.
Ziv Sapir, Managing Partner of Comrit, commented:
“As a long-term stockholder, we have had sustained concerns regarding NYC REIT’s poor corporate governance, chronic underperformance and the resulting trading price discount relative to the Company’s net asset value. Stockholders of NYC REIT since the initial public offering in 2020 are painfully aware that this Board has overseen poor operational and financial performance while failing to take meaningful actions to change the status quo. While the Board recently went into damage control mode following our nomination of a director candidate, we see little evidence of Company leadership acting with the appropriate level of care or urgency to advance stockholders’ interests.
Despite our best efforts to engage in good faith and pursue a compromise with the Board, we were initially rebuffed and told that the Company is ‘prepared to fight.’ This apparent contempt for stockholders only reinforced our view that immediate boardroom change is needed to help ensure objective and independent thinking on the part of the directors. Nevertheless, we would still prefer to reach a negotiated and constructive solution with NYC REIT that is in the best interests of all stockholders. We have nominated Ms. Stern for election to the Board because she is committed to advocating for better governance and exploring all paths to enhancing stockholder value. We contend that electing Ms. Stern, who has a stellar track record in real estate, will be a first step toward restoring investor confidence in NYC REIT and delivering credibility to this seemingly dysfunctional and insular boardroom.
