Notes that ISS Ignores Strong Recent
Performance Showing Front Yard is on the Right Path and Snow Park’s
Significant Conflicts of Interest
Urges Stockholders to Vote FOR ALL of Front Yard’s Director Nominees
Rochelle R. Dobbs, George G. Ellison, Michael A. Eruzione, Leslie
B. Fox, Wade J. Henderson, George Whitfield (“Whit”) McDowell, and
David B. Reiner on the WHITE Proxy
Card
Front Yard Residential Corporation (“Front Yard” or the
“Company”) (NYSE: RESI) today issued the following statement in
response to a report issued by Institutional Shareholder Services,
Inc. (“ISS”) in connection with the election of directors to Front
Yard’s Board at the Company’s 2019 Annual Meeting of Stockholders
on May 23, 2019.
Front Yard urges stockholders to protect their investment by
voting the WHITE proxy card
“FOR ALL” of its highly
qualified director nominees: Rochelle R. Dobbs, George G. Ellison,
Michael A. Eruzione, Leslie B. Fox, Wade J. Henderson, George
Whitfield (“Whit”) McDowell, and David B. Reiner.
George Ellison, Chief Executive Officer of Front Yard,
commented: “It is unfortunate that ISS has failed to recognize the
great strides Front Yard has taken in recent years to reposition
its portfolio, capture the significant upside that exists in the
growing single-family rental (SFR) market and execute on its core
strategic initiatives that will drive value for stockholders over
the long-term. While total shareholder return (TSR) is an important
metric, in our case, it simply does not tell the whole story and
should not be the sole determining factor on how to judge Front
Yard’s performance. Importantly, Front Yard’s stock price is up
approximately 10% since May 8, 2019, the day the Company announced
its amended and restated asset management agreement with its
external manager, which was designed to build long-term stockholder
value and has been well received by our stockholders and the
analysts that understand our business best. Accordingly, we believe
ISS’ analysis is deeply flawed and does Front Yard’s stockholders a
disservice as we believe that the addition of Snow Park’s nominees
to the Front Yard Board could result in significant disruption to
the Company’s ongoing successful transformation.
“Stockholders should recognize that a vote on the Blue proxy
card is a vote to replace highly-qualified, experienced directors
with unqualified, unknown and unvetted nominees who would not bring
any new skills to the Board. In fact, the nominees put forth by
Snow Park have little to no experience in the ownership and
management of SFR homes and possess repetitive, finance-related
backgrounds in business lines that Front Yard transitioned away
from years ago. Snow Park itself is a highly-conflicted hedge fund
that has a substantial short interest in Front Yard’s shares,
giving it a net long position well under 0.5%. This means Snow Park
has minimal economic exposure to the Company or alignment with its
stockholders. Furthermore, Snow Park owns 5.0% of AAMC, which it
has acknowledged could result in additional conflicts of interest.
The generic ideas put forth by Snow Park are fundamentally at odds
with Front Yard’s growth strategy, and the election of its nominees
would be a step in the wrong direction. Moreover, the election of
any of Snow Park’s nominees would remove highly valuable and
critical institutional knowledge and expertise from our boardroom
and put your investment at risk. Accordingly, we are confident that
Front Yard has the right Board and strategy in place to continue
driving long-term stockholder value.”
Front Yard stockholders are reminded that their vote is
extremely important, no matter how many shares they own. The Front
Yard Board unanimously urges stockholders to protect the value of
their investment by using the WHITE proxy card to vote
“FOR ALL” of Front Yard’s director nominees. The Front Yard
Board advises all stockholders to simply discard any Blue proxy
card received from Snow Park. Instead, to follow the Board’s
recommendation, stockholders should use the WHITE proxy card
to vote “FOR ALL” seven of Front Yard’s director
nominees.
PROTECT YOUR INVESTMENT!
PLEASE VOTE TODAY ON THE WHITE PROXY CARD!
If you have questions or need assistance in
voting your shares
on the WHITE proxy card, please call our
proxy solicitor:
INNISFREE M&A INCORPORATED
Stockholders may call toll-free at 1 (888)
750-5834
Banks and Brokers may call collect at 1
(212) 750-5833
About Front Yard
Front Yard is an industry leader in providing quality,
affordable rental homes to America’s families. Our homes offer
exceptional value in a variety of suburban communities that have
easy accessibility to metropolitan areas. Front Yard's tenants
enjoy the space and comfort that is unique to single-family
housing, at reasonable prices. Our mission is to provide our
tenants with houses they are proud to call home. Additional
information is available at www.frontyardresidential.com.
Forward-Looking Statements
The information in this press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, regarding management’s beliefs, estimates,
projections, anticipations and assumptions with respect to, among
other things, the Company’s financial results, future operations,
business plans and investment strategies, industry and market
conditions and the future composition of the Company’s Board. These
statements may be identified by words such as “anticipate,”
“intend,” “expect,” “may,” “could,” “should,” “would,” “plan,”
“estimate,” “target,” “seek,” “believe” and other expressions or
words of similar meaning. We caution that forward-looking
statements are qualified by the existence of certain risks and
uncertainties that could cause actual results and events to differ
materially from what is contemplated by the forward-looking
statements. Factors that could cause our actual results to differ
materially from these forward-looking statements may include,
without limitation, our ability to implement our business strategy;
our ability to make distributions to stockholders; our ability to
acquire SFR assets for our portfolio, including difficulties in
identifying assets to acquire; the impact of changes to the supply
of, value of and the returns on SFR assets; our ability to
successfully integrate newly acquired properties into our portfolio
of SFR properties; our ability to successfully operate our internal
property manager and perform property management services for our
SFR assets at the standard and/or the cost that we anticipate; our
ability to transition property management for the SFR properties
currently managed by third party property managers to our internal
property management platform; our ability to predict our costs; our
ability to effectively compete with our competitors; our ability to
apply the proceeds from financing activities or non-rental real
estate owned asset sales to target SFR assets in a timely manner;
our ability to sell non-rental real estate owned properties on
favorable terms and on a timely basis or at all; the failure to
identify unforeseen expenses or material liabilities associated
with asset acquisitions through the due diligence process prior to
such acquisitions; changes in the market value of our SFR
properties and real estate owned; changes in interest rates; our
ability to obtain and access financing arrangements on favorable
terms or at all; our ability to maintain adequate liquidity; our
ability to retain our engagement of Altisource Asset Management
Corporation; the failure of our third party vendors to effectively
perform their obligations under their respective agreements with
us; our failure to maintain our qualification as a REIT; our
failure to maintain our exemption from registration under the
Investment Company Act; the impact of adverse real estate, mortgage
or housing markets; the impact of adverse legislative, regulatory
or tax changes; and other risks and uncertainties detailed in the
“Risk Factors” and other sections described from time to time in
our current and future filings with the Securities and Exchange
Commission. In addition, financial risks such as liquidity,
interest rate and credit risks could influence future results. The
foregoing list of factors should not be construed as
exhaustive.
The statements made in this press release are current as of the
date of this press release only. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements or any other information contained herein, whether as a
result of new information, future events or otherwise, except as
required by law.
Important Additional Information and Where to Find It
The Company has filed a definitive proxy statement on Schedule
14A and form of associated WHITE proxy card with the U.S.
Securities and Exchange Commission (the “SEC”) in connection with
its solicitation of proxies for its 2019 Annual Meeting of
Stockholders. STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE
COMPANY’S DEFINITIVE PROXY STATEMENT (AND ANY AMENDMENTS AND
SUPPLEMENTS THERETO) AND ACCOMPANYING WHITE PROXY CARD AS THEY
CONTAIN IMPORTANT INFORMATION. Stockholders may obtain the proxy
statement, any amendments or supplements to the proxy statement and
other documents as and when filed by the Company with the SEC
without charge from the SEC’s website at www.sec.gov.
Certain Information Regarding Participants in
Solicitation
The Company, its directors and certain of its executive officers
may be deemed to be participants in the solicitation of proxies
from stockholders in connection with the matters to be considered
at the 2019 Annual Meeting. Information regarding the ownership of
the Company’s directors and executive officers in the Company’s
stock is included in their SEC filings on Forms 3, 4 and 5, which
can be found through the SEC’s website at www.sec.gov. Information
can also be found in the Company’s other SEC filings. More detailed
and updated information regarding the identity of potential
participants, and their direct or indirect interests, by security
holdings or otherwise, will be set forth in the proxy statement and
other materials to be filed with the SEC. These documents can be
obtained free of charge from the sources indicated above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190513005241/en/
Investors:Robin N. LoweChief Financial Officer(345)
815-9919Robin.Lowe@AltisourceAMC.comMedia:Jonathan
Gasthalter/Nathaniel GarnickGasthalter & Co.(212)
257-4170FrontYard@gasthalter.com
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