One in four asked to be bought out. Six months later, a third would not vote.
One in four asked to be bought out. Six months later, a third would not vote.
On August 13, Lightstone Value Plus REIT V convened its annual meeting and adjourned it without electing a single director. Not enough shareholders showed up. The bar it failed is one third of shares outstanding, not a majority, and it had cleared that same bar by 0.7, 2.4 and 3.5 points at the three previous meetings.
That is the part anyone can report. The interesting part is what happened to these shareholders first.
The ordinary exit was closed, then the other one was rationed
Fifteen days after the December 2025 meeting, the board suspended the share redemption programme indefinitely and opened a self-tender for 2,200,000 shares at $14.08. That is 85% of the company's own $16.56 NAV. While the programme was suspended no redemption request would be accepted, so for the duration that discount was the only way out.
Holders tendered 3,893,608 shares against 2,200,000 of capacity. Oversubscribed by 77%. The company bought roughly 56.5% pro rata, leaving 1,693,608 tendered shares refused.
About a quarter of the register asked to leave at a 15% discount to the company's own valuation, and 43.5% of what they tendered was turned down. Five months later, that same register was mailed a proxy card.
I cannot show the first caused the second and I will not pretend otherwise. Nobody outside the transfer agent can match a refused seller to a non voter.
One detail makes it harder to wave away, and it cuts against the easy reading. The tender took 2.2 million shares out of the denominator, so the August quorum bar was about 5,382,307 shares instead of roughly 6,115,640. The target got easier. They missed it anyway.
The meeting reconvenes September 10. The proxy's own 120 day limit runs out September 12.
The whole filing trail, meeting by meeting →
If you hold anything non-traded, the lesson is free: vote. Failing a quorum does not remove a board, it lets the incumbents hold over, so abstaining is the option that helps them most. In something you cannot sell, the proxy card is the only lever left.
Have you ever been cut down on a redemption or a tender? Hit reply and tell me what happened, I read every one.
Jorge