Taubman Centers, Inc. TCO
Taubman's best-in-class malls are worth ~$106/share (~70% upside), but the family's dual-class 30% voting block blocks reform — elect Litt and governance expert Elson.
Thesis
Land and Buildings, a REIT-focused activist run by Jonathan Litt, is waging a proxy fight at Taubman Centers ahead of the June 1, 2017 annual meeting, seeking to elect Litt and corporate-governance expert Charles Elson to the staggered board. Litt argues Taubman's Class-A mall portfolio is worth approximately $106 per share, roughly 70% above the current price, but entrenched governance — particularly the Taubman family's dual-class B-share structure which confers a ~30% voting block — has prevented best-in-class assets from translating into best-in-class shareholder returns. Citing support from ISS, Glass Lewis, and Egan Jones, Litt dismisses Taubman's eleventh-hour declassification pledge, announced two days before the vote and ten years after 85% of common holders supported declassification, as a 'Band-Aid on a bullet wound,' and urges shareholders to vote the GOLD proxy card.
SCQA
Taubman Centers owns a best-in-class portfolio of Class-A shopping malls, a REIT segment Land and Buildings believes will thrive despite retail's omni-channel disruption thanks to premium tenants and durable investor demand.
The Taubman family's dual-class B-share structure delivers a ~30% voting block atop a staggered board, preventing the company from closing the gap between its premium assets and peer-lagging shareholder returns despite a prior 85% declassification vote.
Vote the GOLD proxy card on June 1, 2017 to elect Jonathan Litt and corporate-governance expert Charles Elson, installing two independent directors to drive operational, strategic, and governance reforms alongside CEO Bobby Taubman.
Land and Buildings estimates Taubman's underlying asset value at approximately $106 per share — roughly 70% upside from current levels — with additional upside available from low-hanging operational improvements.
The three reasons
- 1
Taubman's Class-A malls are worth ~$106/share — roughly 70% upside from current levels
- 2
Dual-class B-shares hand the Taubman family a 30% voting block and block reform
- 3
Eleventh-hour board declassification is 'a Band-Aid on a bullet wound' after 85% declassification vote
Primary demands
- Elect Jonathan Litt and Charles Elson to the Taubman Board via the GOLD proxy card
- Dismantle the Taubman family dual-class B-share structure and its ~30% voting block
- Replace cosmetic board-refreshment with genuine independent governance expertise
- Close the valuation gap between Taubman's Class-A mall assets and its share price
KPIs cited
Pattern membership
Where this document fits across the library's 12 rhetorical / structural patterns.
Notable slides (3)
Notes
Press release wrapping Jonathan Litt's open letter to Taubman shareholders two days before the June 1, 2017 annual meeting. Rhetoric is pointed ('Band-Aid on a bullet wound', 'ill-gotten 30% voting block') but frames cooperation with CEO Bobby Taubman if elected. Cites endorsements from ISS, Glass Lewis, and Egan Jones. Word-processor layout with Land and Buildings wordmark on page 1; no charts or slide-level craft. Stake not disclosed in this document. Campaign URL: SaveTaubman.com.