Sei sulla pagina 1di 19

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

SCHEDULE 13D

UNDER THE SECURITIES EXCHANGE ACT OF 1934 (Amendment No. 1)*

Forest City Realty Trust, Inc.

(Name of Issuer)

Class A Common Stock, $0.01 par value per share

(Title and Class of Securities)

345605109

(CUSIP Number)

Samantha Nasello Scopia Capital Management LP 152 West 57th St., 33rd Floor New York, NY 10019 (212) 370-0303

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

August 8, 2016

(Date of Event Which Requires Filing of Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), Rule 13d-1(f) or Rule 13d-1(g), check the following box. x

Note. Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7(b) for other parties to whom copies are to be sent.

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes)

CUSIP No. 345605109

(1)

Name of Reporting Persons:

Scopia Capital Management LP

(2)

Check the Appropriate Box if a Member of a Group (See Instructions):

(a) ¨

(b) ¨

(3)

SEC Use Only:

(4)

Source of Funds (See Instructions):

AF

(5)

Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): ¨

(6)

Citizenship or Place of Organization:

Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH:

(7)

Sole Voting Power

0

Shared Voting Power

17,934,996

Sole Dispositive Power

0

Shared Dispositive Power

17,934,996

(8)

(9)

(10)

(11)

Aggregate Amount Beneficially Owned by Each Reporting Person:

17,934,996

(12)

Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions): ¨

(13)

Percent of Class Represented by Amount in Row (11):

7.4%*

(14)

Type of Reporting Person (See Instructions):

PN, IA

* Based on 241,563,446 shares of Class A Common Stock of Forest City Realty Trust, Inc. (the “Issuer”) outstanding as of August 1, 2016, as reported in the Issuer’s Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on August 4, 2016.

CUSIP No. 345605109

(1)

Name of Reporting Persons:

Scopia Management, Inc.

(2)

Check the Appropriate Box if a Member of a Group (See Instructions):

(a) ¨

(b) ¨

(3)

SEC Use Only:

(4)

Source of Funds (See Instructions):

AF

(5)

Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): ¨

(6)

Citizenship or Place of Organization:

New York

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH:

(7)

Sole Voting Power

0

Shared Voting Power

17,934,996

Sole Dispositive Power

0

Shared Dispositive Power

17,934,996

(8)

(9)

(10)

(11)

Aggregate Amount Beneficially Owned by Each Reporting Person:

17,934,996

(12)

Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions): ¨

(13)

Percent of Class Represented by Amount in Row (11):

7.4%*

(14)

Type of Reporting Person (See Instructions):

CO, HC

* Based on 241,563,446 shares of Class A Common Stock of the Issuer outstanding as of August 1, 2016, as reported in the Issuer’s Form 10-Q filed with the SEC on August 4, 2016.

CUSIP No. 345605109

(1)

Name of Reporting Persons:

 

Matthew Sirovich

(2)

Check the Appropriate Box if a Member of a Group (See Instructions):

(a) ¨

(b) ¨

(3)

SEC Use Only:

(4)

Source of Funds (See Instructions):

AF

(5)

Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): ¨

(6)

Citizenship or Place of Organization:

United States

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH:

(7)

Sole Voting Power

0

Shared Voting Power

17,934,996

Sole Dispositive Power

0

Shared Dispositive Power

17,934,996

(8)

(9)

(10)

(11)

Aggregate Amount Beneficially Owned by Each Reporting Person:

17,934,996

(12)

Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions): ¨

(13)

Percent of Class Represented by Amount in Row (11):

7.4%*

(14)

Type of Reporting Person (See Instructions):

HC, IN

* Based on 241,563,446 shares of Class A Common Stock of the Issuer outstanding as of August 1, 2016, as reported in the Issuer’s Form 10-Q filed with the SEC on August 4, 2016.

CUSIP No. 345605109

(1)

Name of Reporting Persons:

Jeremy Mindich

(2)

Check the Appropriate Box if a Member of a Group (See Instructions):

(a) ¨

(b) ¨

(3)

SEC Use Only:

(4)

Source of Funds (See Instructions):

AF

(5)

Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): ¨

(6)

Citizenship or Place of Organization:

United States

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH:

(7)

Sole Voting Power

0

Shared Voting Power

17,934,996

Sole Dispositive Power

0

Shared Dispositive Power

17,934,996

(8)

(9)

(10)

(11)

Aggregate Amount Beneficially Owned by Each Reporting Person:

17,934,996

(12)

Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions): ¨

(13)

Percent of Class Represented by Amount in Row (11):

7.4%*

(14)

Type of Reporting Person (See Instructions):

HC, IN

* Based on 241,563,446 shares of Class A Common Stock of the Issuer outstanding as of August 1, 2016, as reported in the Issuer’s Form 10-Q filed with the SEC on August 4, 2016.

Amendment No. 1 to Schedule 13D

The following constitutes Amendment No. 1 to the Schedule 13D filed with the Securities and Exchange Commission (“SEC”) by Scopia Capital Management LP (“Scopia Capital”), Scopia Management, Inc. (“Scopia Management”), Matthew Sirovich and Jeremy Mindich (collectively, the “Reporting Persons”) on June 6, 2016 (“Amendment No. 1”). This Amendment No. 1 amends and supplements the Schedule 13D as specifically set forth herein.

All capitalized terms contained herein but not otherwise defined shall have the meanings ascribed to such terms in the Schedule 13D. Information given in response to each item shall be deemed incorporated by reference in all other items, as applicable.

ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION

Item 3 of the Schedule 13D is hereby amended and restated as follows:

The aggregate purchase price of the shares of Class A Common Stock directly held by the Investment Vehicles reported herein was $362,668,962.16. The shares of Class A Common Stock directly held by the Investment Vehicles were purchased with the working capital of the Investment Vehicles (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business). All shares of Class A Common Stock reported herein were purchased in open market transactions through a broker.

ITEM 4. PURPOSE OF TRANSACTION

Item 4 of Schedule 13D is supplemented and superseded, as the case may be, as follows:

On August 8, 2016, the Reporting Persons delivered a presentation to the Chairman of the Board and the Lead Director of the Issuer (the “Presentation”) in which the Reporting Persons urged the Issuer to eliminate its dual-class stock structure. The Reporting Persons stated in the Presentation that they believe that collapsing the Issuer’s dual-class stock structure would help align the Issuer with corporate governance best practices and would lead to unlocking value for all shareholders.

The foregoing description of the Presentation does not purport to be complete and is qualified in its entirety by reference to the full text of the Presentation, which is filed as Exhibit 99.1, and is incorporated herein by reference.

As previously disclosed, the Reporting Persons have had discussions with members of the Issuer’s management and members of the Issuer’s Board of Directors (the “Board”) in connection with the Reporting Persons’ investment in the Issuer and may from time to time have further discussions with directors and officers of the Issuer, or discussions with other shareholders or third parties regarding the Issuer’s business operations, strategies, capital structure and other matters related to the Issuer. These discussions may continue to review options for maximizing shareholder value such as negotiating the collapse of the Issuer’s share class structure, enhancing the Issuer’s corporate governance, improving capital or asset allocation or various strategic alternatives or operational or management initiatives, including one or more items in subsections (a) through (j) of Item 4 of Schedule 13D. The Reporting Persons may, at any time and from time to time, review or reconsider their position and/or change their purpose and/or formulate plans or proposals with respect thereto.

The Reporting Persons intend to review their investment in the Issuer on a continuing basis and may from time to time and at any time in the future depending on various factors, including, without limitation, the outcome of any discussions referenced above, the Issuer’s financial position and strategic direction, actions taken by the Board, price levels of the Issuer’s securities, other investment opportunities available to the Reporting Persons, conditions in the securities market and general economic and industry conditions, take such actions with respect to the investment in the Issuer as they deem appropriate. These actions may include: (i) acquiring additional shares of Class A Common Stock and/or other equity, debt, notes, other securities, or derivative or other instruments that are based upon or relate to the value of securities of the Issuer (collectively, “Securities”) in the open market or otherwise; (ii) disposing of any or all of their Securities in the open market or otherwise; (iii) engaging in any hedging or similar transactions with respect to the Securities; or (iv) proposing or considering one or more of the actions described in subsections (a) through (j) of Item 4 of Schedule 13D.

Except as set forth herein, the Reporting Persons do not have present plans or proposals at this time that relate to or would result in any of the transactions described in subparagraphs (a) through (j) of Item 4 of Schedule 13D.

ITEM 5. INTEREST IN SECURITIES OF THE ISSUER

Item 5 of the Schedule 13D is hereby amended and restated as follows:

(a) and (b) Items 7 through 11 and 13 of each of the cover pages of this Schedule 13D are incorporated herein by reference. Such information is based on

241,563,446 shares of Class A Common Stock outstanding as of August 1, 2016, as reported in the Issuer’s Form 10-Q filed with the SEC on August 4, 2016.

The Investment Vehicles have delegated to Scopia Capital sole voting and investment power over the securities held by the Investment Vehicles pursuant to their respective Investment Management Agreements with Scopia Capital. As a result, each of Scopia Capital, Scopia Management, as the general partner of Scopia Capital, and Messrs. Sirovich and Mindich, as Managing Directors of Scopia Management, may be deemed to exercise voting and investment power over the shares of Class A Common Stock directly held by the Investment Vehicles. The Investment Vehicles specifically disclaim beneficial ownership of the securities of the Issuer directly held by them by virtue of their inability to vote or dispose of such securities as a result of their respective Investment Management Agreements with Scopia Capital.

(c) Transactions by the Reporting Persons (on behalf of the Investment Vehicles) effected during the past 60 days are set forth in Schedule A below and such

information is incorporated herein by reference.

(d) The disclosure regarding the relationship between the Reporting Persons in Item 2(c) of this Schedule 13D is incorporated by reference herein. All

securities reported in this Schedule 13D are directly held by the Investment Vehicles, all of which are investment management clients of Scopia Capital. None of the Investment Vehicles individually directly holds more than 5% of the Issuer’s outstanding shares of Class A Common Stock. The limited partners of (or investors in) each of the Investment Vehicles have the right to participate in the receipt of dividends from, or proceeds from the sale of, the shares of Class A Common Stock held for the accounts of their respective Investment Vehicles in accordance with their respective limited partnership interests (or investment percentages) in their respective Investment Vehicles.

(e) Not applicable.

ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER

Item 6 of the Schedule 13D is hereby amended and restated as follows:

One of the Investment Vehicles has entered into cash-settled swaps which represent economic exposure comparable to a notional interest in 297,841 shares of Class A Common Stock (representing economic exposure comparable to approximately 0.1% of the outstanding shares of Class A Common Stock). Under the terms of the swaps, (i) the Investment Vehicle will be obligated to pay to the counterparty any negative price performance of the specified notional number of shares of Class A Common Stock subject to the swaps as of the expiration date of such swaps, plus interest rates set forth in the applicable contracts, and (ii) the counterparty will be obligated to pay the Investment Vehicle any positive price performance of the specified notional number of shares of Class A Common Stock subject to the swaps as of the expiration date of the swaps. All balances will be settled in cash. The Reporting Persons’ counterparty for the swaps is Barclays Bank PLC. The swaps do not give the Reporting Persons or the Investment Vehicles direct or indirect voting, investment or dispositive control over any securities of the Issuer and do not require the counterparty thereto to acquire, hold, vote or dispose of any securities of the Issuer. Accordingly, the Reporting Persons disclaim any beneficial ownership of any shares of Class A Common Stock that may be referenced in the swap contracts or shares of Class A Common Stock or other securities or financial instruments that may be held from time to time by any counterparty to the contracts.

ITEM 7.

Exhibit

MATERIAL TO BE FILED AS EXHIBITS

Description

99.1 Presentation to the Chairman of the Board and Lead Director of Forest City Realty Trust, Inc.

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.

Dated as of August 10, 2016

SCOPIA CAPITAL MANAGEMENT LP

By:

Scopia Management, Inc., its general partner

By:

/s/ Matthew Sirovich

Name: Matthew Sirovich Title: Managing Director

SCOPIA MANAGEMENT, INC.

By:

Name: Matthew Sirovich Title: Managing Director

/s/ Matthew Sirovich

By:

/s/ Matthew Sirovich

By:

/s/ Jeremy Mindich

SCHEDULE A

TRANSACTIONS

The following table sets forth all transactions by the Reporting Persons (on behalf of the Investment Vehicles) with respect to shares of Class A Common Stock effected in the last 60 days, inclusive of any transactions effected through 4:00 p.m., New York City time, on August 9, 2016. All such transactions were purchases or sales of Class A Common Stock effected in the open market, and the table excludes commissions paid in per share prices.

Scopia Capital Management LP

 

Shares of Class A Common Stock Purchased/(Sold)

Price Per

Date of Purchase / Sale

Nature of Transaction

Share ($)

Buy

35,394

$22.5748

7/1/2016
7/1/2016

Sell

(135,000)

$22.5484

7/1/2016

Sell

(43,341)

$22.6199

7/5/2016
7/5/2016

Buy

52,462

$23.5365

7/29/2016

Buy

49,326

$23.8401

8/1/2016
8/1/2016

Sell

(10,985)

$23.8032

8/1/2016

A u g u st2 0 1 6 T h eab c’so fT h ed
A u
g
u
st2
0
1
6
T h
eab
c’so
fT h
ed
u
al-classstru
ctu
reatF
o
restC ity
:T o
w in
g
an
A n
ch
o
rE x
h
ib
it9
9
.1
F o restC ity :U n d erv alu ed ,U n d erp erfo
F
o
restC ity
:U n
d
erv
alu
ed
,U n
d
erp
erfo
rm in
g
…relativ
e& ab
so
lu
teF
o
restC ity
sto
ck
h
asu
n
d
erp
erfo
rm ed
th
eMS
C IU .S
.R E IT In
d
ex
(R MZ )b
y
m o
reth
an
5
0
% o
v
erth
elast5
y
ears,d
esp
iteg
en
erally
h
ig
h
erlev
erag
ein
aco
m p
ressin
g
cap
rateen
v
iro
n
m en
t.N o
tab
ly
p
erfo
rm an
cey
ear-to
-d
ateh
asco
n
tin
u
ed
to
b
elessth
an
h
alfth
ato
fth
eR MZ 1
U n
lik
eitsR E IT p
eers,F
o
restC ity
h
asfo
ry
earstrad
ed
atam ean
in
g
fu
ld
isco
u
n
tto
N A V .R E IT S
arecu
rren
tly
trad
in
g
atap
rem iu
m to
estim ated
N A V ,assh
o
w n
in
th
erig
h
tm o
stch
artb
elo
w 2
S
treetan
aly
stsp
eg
F
C E .A ’sN A V p
ersh
areat~
$
3
0
.3
Web
eliev
eth
atco
stsav
in
g
ssh
o
u
ld
ad
d
atleastan
o
th
er$
2
to
N A V in
sh
o
rto
rd
er.A $
3
2
N A V p
ro
x
y
,alth
o
u
g
h
stillco
n
serv
ativ
e,im p
liesa~
2
6
% ab
so
lu
ted
isco
u
n
taso
f7
/2
9
/1
6
D esp
iteo
w n
in
g
g
o
o
d
assetsin
stro
n
g
m ark
ets,v
alu
ed
estru
ctiv
etran
sactio
n
sh
av
ed
am ag
ed
cred
ib
ility
.C h
iefly
,w ep
o
in
tto
B 2
B K L Y N ,A tlan
ticY ard
s,B arclay
sA ren
a,T h
eN ets,an
d
R id
g
eH illS
co
p
iaC ap
ital,o
n
eo
fF
C E .A ’slarg
esto
w n
ersfo
r3
+
y
ears,h
asen
jo
y
ed
aco
n
stru
ctiv
erelatio
n
sh
ip
w ith
F
o
restC ity
,ev
en
asth
esto
ck
h
asrem ain
ed
g
ro
ssly
u
n
d
erv
alu
ed
It'sn aïv eto ig n o reth eA /B stru ctu reasad estro y ero
It'sn
aïv
eto
ig
n
o
reth
eA /B stru
ctu
reasad
estro
y
ero
fv
alu
eS
ep
aratin
g
th
eeco
n
o
m icso
fo
w n
ersh
ip
fro
m th
erig
h
tso
fo
w n
ersh
ip
createsp
o
o
rerp
erfo
rm an
cein
th
elo
n
g
ru
n
,asn
u
m ero
u
sstu
d
iesh
av
ep
ro
v
en
4
In
stitu
tio
n
alS
h
areh
o
ld
erS
erv
ices:C o
n
tro
lled
C o
m p
an
iesin
th
eS
tan
d
ard
& P
o
o
r’s1
5
0
0
:A F
o
llo
w -U p
R ev
iew o
fP
erfo
rm an
ce& R isk
,March
,2
0
1
6
:“C o
n
tro
lled
co
m p
an
iesfeatu
rin
g
m u
ltip
leclasseso
fsto
ck
g
en
erally
u
n
d
erp
erfo
rm ed
o
n
ab
ro
ad
sw ath
o
ffin
an
cialm etricso
v
erth
elo
n
g
term ,arep
erceiv
ed
ash
av
in
g
m o
refin
an
cialrisk
,an
d
o
fferin
g
few errig
h
tsto
u
n
affiliated
sh
areh
o
ld
ersth
an
d
isp
ersed
ly
o
w n
ed
firm s.”B u
tit’salso
ju
st‘co
m m o
n
sen
se’,asp
lain
ly
stated
in
th
elastm o
n
th
b
y
Warren
B u
ffett,JeffIm m elt,Mary
B arra,Jam ieD im o
n
,L arry
F
in
k
,an
d
o
th
ercap
tain
so
fin
d
u
stry
an
d
in
v
estin
g
5
C o
m m o
n
sen
seC o
rp
o
rateG o
v
ern
an
ceP
rin
cip
les,Ju
ly
2
0
1
6
:“D u
alclassv
o
tin
g
isn
o
tab
estp
ractice.Ifaco
m p
an
y
h
asd
u
alclassv
o
tin
g
,w h
ich
so
m etim esisin
ten
d
ed
to
p
ro
tectth
eco
m p
an
y
fro
m sh
o
rt-term b
eh
av
io
r,th
eco
m p
an
y
sh
o
u
ld
co
n
sid
erh
av
in
g
sp
ecificsu
n
setp
ro
v
isio
n
sb
ased
u
p
o
n
tim eo
ratrig
g
erin
g
ev
en
t,w h
ich
elim in
ated
u
alclassv
o
tin
g
.”Web
eliev
eth
ereisn
o
cred
ib
led
eb
ateasto
w h
eth
erad
u
al-classsto
ck
stru
ctu
reh
arm sv
alu
ean
d
isb
ad
co
rp
o
rateg
o
v
ern
an
ce,irresp
ectiv
eo
fw h
o
isth
eco
n
tro
lsh
areh
o
ld
er
T h eA /B S tru ctu reH asd efin ab len eg ativ eIm
T h
eA /B S
tru
ctu
reH asd
efin
ab
len
eg
ativ
eIm p
licatio
n
sfo
rF
C E F
o
restC ity
’sco
sto
feq
u
ity
isu
n
n
ecessarily
h
ig
h
in
o
u
rv
iew d
u
eto
th
eA /B stru
ctu
re,h
in
d
erin
g
g
ro
w th
,en
co
u
rag
in
g
h
ig
h
erlev
erag
e,an
d
h
u
rtin
g
p
erfo
rm an
ceWeb
eliev
eth
isw asreflected
in
th
eMay
2
0
1
5
sto
ck
o
fferin
g
w h
ich
,ata2
5
% +
N A V d
isco
u
n
t,rep
resen
ted
p
erm an
en
tv
alu
eim p
airm en
tfo
rb
o
th
A an
d
B sh
areh
o
ld
ersF
o
restC ity
h
asap
ersisten
tco
m p
etitiv
ed
isad
v
an
tag
ed
u
eitsh
ig
h
erco
sto
feq
u
ity
.C u
rren
tly
th
eco
m p
an
y
’sco
sto
feq
u
ity
is~
1
5
0
b
p
s,o
r~
2
0
% ,h
ig
h
erth
an
th
ep
eersitch
o
o
sesin
itsp
ro
x
y
6
T h
isisp
articu
larly
h
arm fu
lto
lo
n
g
-term p
erfo
rm an
ceb
ecau
seF
o
restC ity
’so
th
erso
u
rceso
ffu
n
d
in
g
areu
n
av
ailab
leo
rd
w in
d
lin
g
:A sm an
ag
em en
th
asstated
,an
d
w eag
ree,th
eco
m p
an
y
sh
o
u
ld
h
av
elo
w erlev
erag
eth
an
to
d
ay
A saR E IT ,th
eco
m p
an
y
iso
b
lig
ated
to
d
istrib
u
teasig
n
ifican
tp
o
rtio
n
o
fitscash
flo
w asad
iv
id
en
d
F
o
restC ity
isru
n
n
in
g
lo
w o
n
n
o
n
-co
reassets.Wo
u
ld
n
’titb
eb
etterto
h
av
ean
ap
p
ro
p
riateco
sto
feq
u
ity
so
w ed
o
n
’th
av
eto
sellco
reassets,an
d
p
ay
tax
es,in
o
rd
erto
g
ro
w ?Web
eliev
eth
isisn
o
tan
ab
stractq
u
estio
n
:th
eA /B stru
ctu
reclearly
h
arm sth
eco
m p
an
y
T h eA /B stru ctu relim itssh areh o ld erin terestin fo restcity
T h
eA /B stru
ctu
relim itssh
areh
o
ld
erin
terestin
fo
restcity
T h
eA /B stru
ctu
reisan
o
b
staclefo
rm an
y
in
v
esto
rsco
n
sid
erin
g
o
w n
in
g
F
o
restC ity
sto
ck
Web
eliev
eth
isisw h
y
itisafreq
u
en
tlin
eo
fq
u
estio
n
in
g
fro
m WallS treetA n
aly
sts:“Wh
en
talk
in
g
to
in
v
esto
rsth
ataren
ew to
y
o
u
rsto
ry
,th
eq
u
estio
n
th
atco
m esu
p
allth
etim eisth
eA /B sh
arestru
ctu
re.”C itig
ro
u
p
:C h
risty
McE lro
y
,3
/1
5
/1
6
,2
0
1
6
G lo
b
alP
ro
p
ertiesC E O C o
n
feren
ce“A n
d
fin
ally
,Ith
in
k
in
v
esto
rsarestillv
ery
,v
ery
in
terested
to
g
etan
y
co
lo
rth
aty
o
u
can
p
ro
v
id
eo
n
u
n
d
erstan
d
in
g
th
efam ily
’sreactio
n
o
rp
o
ssib
ility
o
fco
llap
sin
g
th
ed
u
alsh
arestru
ctu
re…Iw o
u
ld
ju
stad
d
th
atIth
in
k
th
esto
ck
m ark
etisd
isco
u
n
tin
g
allth
eg
o
o
d
stu
ffth
aty
o
u
’v
ed
o
n
ean
d
isafo
rw ard
-lo
o
k
in
g
m ech
an
ism ,an
d
so
Iw o
u
ld
h
o
p
eth
atitb
eco
m esto
p
o
fm in
d
so
o
n
errath
erth
an
later.”B MO C ap
italMark
ets:P
au
lA d
o
rn
ato
,2
/2
4
/1
6
,F
o
restC ity
4
Q 1
5
E arn
in
g
sC allWeb
eliev
ey
o
u
h
av
erecen
tly
p
o
lled
sh
areh
o
ld
ers,an
d
th
ev
astm ajo
rity
to
ld
y
o
u
th
atth
eA /B sto
ck
stru
ctu
reisan
im p
ed
im en
tto
v
alu
eWeb
eliev
em an
ag
em en
t’sfo
cu
so
n
h
o
w m u
ch
itco
n
trib
u
testo
th
ep
eerd
isco
u
n
tisirrelev
an
tan
d
ad
istractio
n
Wh
eth
erit's5
% o
r5
0
% v
alu
ed
estru
ctiv
e,w h
y
d
o
esn
'tth
em ajo
rity
in
d
ep
en
d
en
tb
o
ard
w an
tth
atv
alu
efo
rallsh
areh
o
ld
ers?F
o
restC ity
’sp
ersisten
tco
m p
etitiv
ed
isad
v
an
tag
efro
m th
eA /B stru
ctu
reisalarg
ep
arto
fw h
y
so
m an
y
in
v
esto
rsw o
u
ld
lik
eitco
llap
sed
Man ag em en t'sw ait-an d -seeap p ro ach m ak esn o
Man
ag
em en
t'sw ait-an
d
-seeap
p
ro
ach
m ak
esn
o
sen
seWeb
eliev
em an
ag
em en
t’sstrateg
y
to
w ait1
2
-to
-1
8
m o
n
th
sfo
rv
alu
atio
n
to
im p
ro
v
eb
efo
red
ecid
in
g
w h
eth
erto
p
u
rsu
eaco
llap
seo
fsh
areclassesisb
u
ilto
n
tw o
fallacies:T h
atw aitin
g
1
2
-to
-1
8
m o
n
th
sisn
ecessary
,o
rsh
o
u
ld
m ak
ead
ifferen
ceWaitin
g
fo
rth
eco
m p
an
y
to
clo
seth
eg
ap
o
n
v
alu
atio
n
b
eliesth
efactth
atth
ech
an
g
esalread
y
m ad
earem o
reim p
actfu
lth
an
th
o
sey
o
u
’v
ep
ro
jected
T h
esto
ck
m ark
etisafo
rw ard
-d
isco
u
n
tin
g
m ech
an
ism :m an
ag
em en
th
asd
efin
ed
an
d
q
u
an
tified
fo
rth
em ark
etth
eev
en
tsth
ey
ex
p
ectw illim p
ro
v
ev
alu
ein
th
eu
p
co
m in
g
m o
n
th
sP
u
rsu
in
g
th
eco
llap
seo
fth
eA /B stru
ctu
reisn
o
tatim e-co
n
su
m in
g
p
ro
jectfo
rm an
ag
em en
t,an
d
h
asn
o
reaso
n
to
b
esu
b
o
rd
in
ateto
y
o
u
ro
th
erin
itiativ
esT h
atp
u
rsu
in
g
co
llap
sesh
o
u
ld
b
eaq
u
estio
n
o
f“if”n
o
t“w h
en
”Man
ag
em en
tan
d
th
eb
o
ard
h
av
eack
n
o
w led
g
ed
it’saco
n
trib
u
to
rto
th
ev
alu
atio
n
d
iscrep
an
cy
so
w h
y
n
o
th
av
eb
o
th
ex
ecu
tio
n
an
d
eq
u
itab
letreatm en
tfo
rallsh
areh
o
ld
ers?S
h
o
u
ld
n
’tth
efo
cu
sb
eo
n
th
e‘b
est’o
u
tco
m e,an
d
n
o
tsim p
ly
‘g
o
o
d
en
o
u
g
h
’?Wh
ileF
o
restC ity
h
asm ad
em ean
in
g
fu
lch
an
g
esin
th
elastfew y
ears,ith
asev
ad
ed
th
eelep
h
an
tin
th
ero
o
m :th
eA /B sto
ck
stru
ctu
re
th efailu reo fp astactio n sto im p ro v ev alu eisp ro
th
efailu
reo
fp
astactio
n
sto
im p
ro
v
ev
alu
eisp
ro
lo
g
u
eA cco
m p
lish
m en
tsE lected
R E IT statu
s.R ein
stated
d
iv
id
en
d
4
x
lo
w erlev
erag
ein
4
y
ears$
1
.2
b
n
assetsso
ld
in
2
0
1
6
S
im p
lified
b
u
sin
ess,red
u
ced
assetclassesId
en
tified
$
6
0
m n
in
co
stsav
in
g
s.A ctio
n
tak
en
o
n
h
alfD ev
elo
p
m en
tex
p
o
su
re<
1
0
% assets8
8
% o
fN O Ifro
m co
rem ark
etsA n
ticip
ated
Im p
ro
v
em en
tsS
eg
m en
td
isclo
su
rew ith
Q 3
resu
lts1
-2
x
lo
w erlev
erag
ein
1
2
-to
-1
8
m o
n
th
sS
ellC lev
elan
d
ap
ts,S
k
o
k
ieL ifeS
cien
cesT h
eactio
n
salread
y
tak
en
b
y
F
o
restC ity
faro
u
tw eig
h
th
o
seto
co
m ein
th
en
ex
t1
2
-to
-1
8
m o
n
th
s,an
d
h
av
en
o
tim p
ro
v
ed
v
alu
atio
n
w h
y
w illth
istim eb
ed
ifferen
t?Waitin
g
isn
o
tafreeo
p
tio
n
:itco
stsA L L sh
areh
o
ld
ers
co n clu sio n Web eliev eF o restC ity ’sb o ard h
co
n
clu
sio
n
Web
eliev
eF
o
restC ity
’sb
o
ard
h
astak
en
n
u
m ero
u
sstru
ctu
ralstep
sto
en
h
an
cev
alu
ean
d
to
d
isp
lay
im p
ro
v
ed
co
rp
o
rateg
o
v
ern
an
ceB u
tn
o
n
eo
fth
ism attersifth
em ark
et’sp
ercep
tio
n
isth
atth
eco
m p
an
y
m ain
tain
sth
eA /B stru
ctu
reb
ecau
seF
o
restC ity
isn
o
tru
n
to
m ax
im izev
alu
efo
rallitssh
areh
o
ld
ersT h
eo
n
ly
w ay
to
p
erm an
en
tly
d
efeatth
isp
ercep
tio
n
in
o
u
rv
iew isth
eim m ed
iateco
llap
seo
fth
eA /B stru
ctu
reN o
w isth
etim efo
rth
eb
o
ard
an
d
B -sh
areh
o
ld
ersto
p
ro
v
eth
atth
ey
aretru
estew ard
san
d
fid
u
ciarieso
fth
eA -sh
areh
o
ld
ers’cap
italb
y
co
llap
sin
g
th
esh
areclassesWh
eth
erfairo
ru
n
fair,th
eA /B stru
ctu
ren
u
rtu
resth
ep
ercep
tio
n
th
atF
o
restC ity
ex
iststo
serv
eth
eB -sh
areh
o
ld
ers,an
d
n
o
tallitso
w n
ers
F o o tn o tesR etu rn d ataisaso f7 /2 9 /1 6
F
o
o
tn
o
tesR etu
rn
d
ataisaso
f7
/2
9
/1
6
R E IT In
d
ex
d
atap
u
lled
fro
m C red
itS
u
isse“C S
R E IT V alu
atio
n
R ecap
”research
n
o
tefro
m 7
/3
1
/1
6
.F
C E .A P
/N A V d
atap
u
lled
fro
m 7
/2
9
/1
6
m ed
ian
sp
o
tN A V estim atesfro
m C red
itS
u
isse,B an
k
o
fA m erica,G o
ld
m an
S
ach
s,C itig
ro
u
p
,B MO ,an
d
E v
erco
reMed
ian
o
fN A V estim atesav
ailab
leo
n
7
/2
9
/1
6
fro
m C red
itS
u
isse,B an
k
o
fA m erica,G o
ld
m an
S
ach
s,C itig
ro
u
p
,B MO ,an
d
E v
erco
re.F
o
rw ard
N A V u
sed
ifav
ailab
leIn
stitu
tio
n
alS
h
areh
o
ld
erS
erv
ices:C o
n
tro
lled
C o
m p
an
iesin
th
eS
tan
d
ard
& P
o
o
r’s1
5
0
0
:A F
o
llo
w -U p
R ev
iew o
fP
erfo
rm an
ce& R isk
,March
,2
0
1
6
.E x
trem eG o
v
ern
an
ce:A n
A n
aly
siso
fD u
al-C lassF
irm sin
th
eU n
ited
S tates,May
2
0
0
7
,H aasS
ch
o
o
lo
fB u
sin
ess,U n
iv
ersity
o
fC alifo
rn
iaB erk
eley
.T h
eD u
alC lassS
h
areS
tru
ctu
re,O liv
iaWan
g
,E m o
ry
L aw S
ch
o
o
l.E q
u
ity
O w n
ersh
ip
an
d
F
irm V alu
ein
E m erg
in
g
Mark
ets,K arlL in
s,U n
iv
ersity
o
fU tah
D ep
artm en
to
fF
in
an
ce.A g
en
cy
P
ro
b
lem satD u
al-classC o
m p
an
ies,R o
n
ald
WMasu
lis,C o
n
g
Wan
g
,an
d
F
eiX ie.S
to
ck
P
y
ram id
s,C ro
ss-O w n
ersh
ip
an
d
D u
alC lassE q
u
ity
:T h
eMech
an
ism so
fA g
en
cy
C o
stso
fS
ep
aratin
g
C o
n
tro
lF
ro
m C ash
-F
lo
w R ig
h
ts,C o
n
cen
trated
C o
rp
o
rateO w n
ersh
ip
,L u
cian
A y
eB eb
ch
u
k
,R ein
ierK raak
m an
,an
d
G eo
rg
eT rian
tisC o
m m o
n
sen
seP
rin
cip
leso
fC o
rp
o
rateG o
v
ern
an
ce,w w w .g
o
v
ern
an
cep
rin
cip
les.o
rg
,b
y
T im A rm o
u
r,C ap
italG ro
u
p
;Mary
B arra,G en
eralMo
to
rsC o
m p
an
y
;Warren
B u
ffett,B erk
sh
ireH ath
aw ay
In
c.;Jam ieD im o
n
,JP Mo
rg
an
C h
ase;Mary
E rd
o
es,J.P .Mo
rg
an
A ssetMan
ag
em en
t;L arry
F
in
k
,B lack
ro
ck
;JeffIm m elt,G E ;Mark
Mach
in
,C P
P
In
v
estm en
tB o
ard
;L o
w ellMcA d
am ,V erizo
n
;B illMcN ab
b
,V an
g
u
ard
;R o
n
ald
O ’H an
ley
,S
tateS
treetG lo
b
alA d
v
iso
rs;B rian
R o
g
ers,T .R o
w eP
rice;JeffU b
b
en
,V alu
eA ctC ap
italC o
sto
feq
u
ity
p
u
lled
fro
m B lo
o
m b
erg
.C o
m p
arab
leco
m p
an
iesp
u
lled
fro
m th
elatestp
ro
x
y
an
d
in
clu
d
eD R E ,F
R T ,K IM,U D R ,V N O ,D D R ,E Q R ,C B L ,MA C ,A V B ,A IV ,A R E ,B X P
,S
L G