Area Stocks Jan 22, 2018
Also: Other proxy advisors weigh in on J. Alexander’s M&A plan, LifePoint exec books big options profit
CoreCivic executives have bought a five-story Class B office building in Tallahassee that is leased mostly to Florida state agencies.
Terms of the acquisition of the 260,867-square-foot Capital Commerce Center aren’t being disclosed. For Nashville-based CoreCivic, the former Corrections Corp. of America, the purchase delivers the first notable asset that’s not a prison or other traditional correctional property.
“We believe that expanding into other government-leased real estate assets offers the synergistic benefits of leveraging our extensive real estate management capabilities across a current portfolio representing over 17 million square feet and our extensive history of working with and developing real estate solutions at all levels of government,” said President and CEO Damon Hininger.
CoreCivic bought the 28-year-old Tallahassee building from TerraCap Management, which had owned it since late 2013. Almost 90 percent of its space is leased long term by the Florida Department of Business and Professional Regulation.
CoreCivic shares (Ticker: CXW) were up slightly to $22.39 in Monday trading. They have fallen more than 20 percent in the past six months.
A second proxy advisory firm has come out against the plan by J. Alexander’s to buy casual dining chain 99 Restaurants, while a third suggests investors go along with management’s proposal.
Since Institutional Shareholder Services last week said J. Alexander’s owners should vote down the $200 million plan to buy 99 Restaurants, peer firm Glass Lewis has come to the same conclusion. But smaller player Egan-Jones Proxy Services is on board with the proposed acquisition, which will result in J. Alexander’s being majority-owned by newly public Cannae Holdings.
The leaders of J. Alexander’s on Monday morning said the ISS and Glass Lewis reports “surprisingly ignore the actions by the J. Alexander’s Board of Directors to establish an equitable process for the transaction, including specific negotiations for the transaction to be approved by disinterested shareholders.
“We were gratified that Egan-Jones […] reviewed the same facts as its competitors and came to recommend a vote “FOR” this transaction. We believe that shareholders who conduct their own thoughtful analysis will arrive at the same conclusion.”
J. Alexander’s shares (Ticker: JAX) were down about 1.4 percent to $10.20 in late-morning trading Monday. They rallied late last week but are still trading below the $11 valuation they’ve been accorded in the 99 acquisition plan.
David Dill, LifePoint Health’s president and chief operating officer, last week booked a seven-figure profit on a block of stock options he was granted in early 2009.
A trading plan set up by Dill, who has been with Brentwood-based LifePoint since mid-2007, on Tuesday exercised 45,000 options, paying almost $26 apiece. He then sold the same number of shares for about $48.50 each. The moves generated a little more than $1 million in gains for the 49-year-old exec, who still owns about $10 million worth of LifePoint stock.
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