Monmouth Gets Board Nominations From Blackwells; Street Is Cautiously Optimistic

Monmouth Real Estate Investment announced that it received a notice from Blackwells Capital regarding their intent to nominate four candidates to the company’s board along with the submission of six non-binding proposals at the company’s 2021 annual meeting.

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The real estate investment trust [REIT] also received notice from Land & Buildings Investment Management regarding their intent to nominate four candidates to the company’s board and submission of one non-binding proposal at the meeting.

On Dec. 21, Monmouth Real Estate (MNR) reported that the company board was reviewing a non-binding, unsolicited proposal from Blackwells to acquire all of the outstanding common shares of the company for $18 per share in cash. Blackwells had earlier on Dec. 1 submitted a similar unsolicited proposal to acquire all of the outstanding shares of the company for $16.75 in cash. MNR closed at $17.32 on Dec. 31, 2020.

Following the takeover offer, B. Riley Securities analyst Craig Kucera raised the stock’s price target to $20 (15.5% upside potential) from $18 and reiterated a Buy rating.

Kucera considered the offer price “as fair but certainly not a significant portfolio premium” for an industrial REIT of Monmouth’s “quality relative to its peers.” The analyst believes that the “Go-Shop” period may lead to a higher offer for Monmouth. (See MNR stock analysis on TipRanks)

From the rest of the Street, the stock scores a cautiously optimistic analyst consensus of a Moderate Buy based on 3 Buys and 2 Holds. The average analyst price target of $17 implies downside potential of close to 2% to current levels.