Elliott Investment Management is calling for Sumitomo Realty & Development to improve shareholder returns and corporate governance, saying the Japanese real estate developer’s stock is worth 40% more than its current value.
The New York-based investment firm released a public letter Monday, saying it would vote against Tokyo-based Sumitomo Realty’s senior management at the upcoming annual shareholders meeting if there’s no meaningful progress made on improving its value.
The letter is a rare public move by Elliott, which has kept quiet on most of its Japan investments. In the past year, news reports have unveiled the firm’s activist engagement with companies like Tokyo Gas, Mitsui Fudosan and SoftBank Group. Elliott’s stake in Sumitomo Realty was first reported in March.
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