Activists see 'substantial discount' in Franklin Street as they pursue board seat
Investing.com -- Activist investors Converium Capital and Erez Capital Management have jointly taken a 6.8% stake in Franklin Street Properties Corp (NYSE:FSP) and are pursuing board representation, believing the shares are “undervalued and represent an attractive investment opportunity.”
In a Schedule 13D filed with the SEC on November 5th, the two funds reported 3.6% and 3.2% respective stakes, and said they have been in discussions with the company regarding “composition of the Board, operations, capital allocation, and the strategy and plans.”
Additionally, Converium has nominated Erez Capital’s CIO Bruce Schanzer to FSP’s Board.
In comments made to Investing.com, Schnazer, who was the CEO and President of Cedar Realty (NYSE:CDR) Trust (NYSE: CDR-B) before founding REIT-focused Erez Capital, said his fund’s objective is to find discrepancies between the sum-of-parts value of a company’s individual holdings and its stock price.
As such, Schnazer said he believes FSP shares are currently trading at a “substantial discount” to the value of its real estate and reiterated his and Converium’s joint commitment to unlocking the value.
Franklin Street Properties has not commented on Converium and Erez’s nomination.
FSP shares closed at $1.95 yesterday and are down nearly 25% YTD.
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