Diversified Healthcare Trust investor raises concerns about RMR Group CEO buying shares
13/06/2023 23:56
June 13 (Reuters) - An investor in Diversified
Healthcare Trust DHC.O on Tuesday expressed concerns about the
"accumulation" of the real estate investment trust's (REIT)
shares by the chief executive of the company that manages the
firm.
Flat Footed, which holds about a 9.7% stake in DHC, called
on the company's board to assess "whether it is appropriate for
(Adam Portnoy) to continue buying shares."
Portnoy leads RMR Group, which manages both DHC and Office
Properties Income Trust OPI.O , the real estate investment
trusts that are seeking to merge but have faced significant
opposition from shareholders.
Flat Footed had opposed the merger last month, saying the
deal undervalues the REIT by 90% and there are better
alternatives to an all-share deal.
Hedge fund D.E. Shaw has also said it would oppose the deal.
RMR Group did not immediately respond to a Reuters request
for comment.
OPI and DHC announced the merger in April.
(Reporting by Kannaki Deka in Bengaluru; Editing by Maju
Samuel)
((Kannaki.Deka@thomsonreuters.com;))