Blackwells Capital Issues Open Letter to Colony Credit Board of Directors in Response to Value Destruction and Mismanagement
NEW YORK, Dec. 09, 2019 (GLOBE NEWSWIRE) — Blackwells Capital LLC (together with its affiliates “Blackwells”), an alternative investment management firm which owns shares of Colony Credit Real Estate, Inc. (NYSE: CLNC) (“Colony Credit” or the “Company”) directly and indirectly through its ownership of Colony Capital, Inc. (NYSE: CLNY) (“Colony Capital”), today issued an open letter to the Company’s Board of Directors, calling for change in the leadership of Colony Credit.
“Colony Credit is ideally positioned to deliver strong shareholder returns – with a broad mandate and diversified portfolio in a strong commercial real estate environment – but for a management team that has consistently failed to deliver on this opportunity,” said Jason Aintabi, Chief Investment Officer of Blackwells. “Under the leadership of CEO Kevin Traenkle and Colony Capital Executive Chairman Tom Barrack, Colony Credit has repeatedly written down its assets and cut its dividend dramatically. Unsurprisingly, investors have lost confidence in this team and the stock now trades at a significant discount to book value, while public peers trade at a premium.”