Meagan Reda Quoted in Law360 on Activists Improving Valuation at Commercial Property Companies

Olshan Shareholder Activism partner Meagan Reda was recently quoted in a Law360 article (subscription required) on the commercial property companies that are currently engaged in proxy fights with activists. Expecting this proxy season to be busier than last year’s, Meagan said that activists will continue to target public real estate companies that haven’t positioned themselves to do well during the economic downturn, especially if they see a gap between a company’s stock price and the value of its assets: “Despite any improved performance in the real estate industry, generally, if that valuation gap is still present and they're still materially underperforming compared to peers, they should expect an activist to surface and push for change.” Meagan also noted that, although certain sectors of the real estate market continue to face strain, activist investors are pinpointing situations where executives are being paid with outsized compensation while their company struggles: “I think pushes for executive pay that more closely align with the performance of a company and things of that nature will continue to be a focus in 2024.”