Gyrodyne reaches agreement with Star Equity, reduces board size

ST. JAMES, N.Y. - Gyrodyne, LLC (NASDAQ:GYRO), a small-cap real estate company with a market capitalization of $22.34 million, announced Friday it has entered into an agreement with Star Equity Fund, LP that will reduce the company’s board size from five to four directors and implement certain director compensation limitations. According to InvestingPro data, the company’s stock has shown strong momentum, posting a 27% gain over the past six months.

Under the agreement, Star Equity Fund has withdrawn its slate of nominees for election at the 2025 annual shareholders meeting. Gyrodyne will freeze director compensation and limit the aggregate fee paid to the Chairman to $65,000. Richard Smith will be the sole nominee standing for election at the upcoming shareholders meeting.

The real estate company, which owns and manages properties in the New York metropolitan area, said Star Equity has agreed to certain customary standstill provisions as part of the deal.

"We appreciate the thoughtful input from Star Equity and our broader shareholder base," said Gary Fitlin, Gyrodyne’s President and Chief Executive Officer in the press release. "Their perspectives have strengthened our efforts as we work toward completing the sale of our properties." The company’s stock is currently trading at $10.16, near its 52-week high of $12.00, reflecting investor optimism about these strategic moves.

Jeff Eberwein, manager of Star Equity Fund, stated they were "pleased to have worked collaboratively with the Board to enhance governance and further align with shareholders’ interests."

The agreement also marks the departure of Paul Lamb, who will not stand for re-election after 28 years of service to Gyrodyne. Nader Salour, Chairman of Gyrodyne’s Nominating Committee, noted that Lamb will continue to be "an important voice" as a significant shareholder.

Gyrodyne owns a 63-acre site approximately 50 miles east of New York City on Long Island’s north shore, which includes industrial and office buildings and undeveloped property, as well as a medical office park in Cortlandt Manor, New York.

The full agreement with Star Equity will be filed in a Current Report on Form 8-K with the Securities and Exchange Commission, according to the company’s statement. For investors seeking deeper insights into Gyrodyne’s financial health and performance metrics, InvestingPro offers additional analysis, including exclusive ProTips and comprehensive financial metrics.

In other recent news, Gyrodyne, LLC has announced a significant land sale agreement involving its subsidiary, GSD Flowerfield, LLC. The company has entered into a purchase and sale agreement with B2K Smithtown LLC for approximately 49 acres of vacant land located in the Flowerfield complex in St. James, New York. The sale agreement is valued between $24 million and $28.74 million, with Gyrodyne estimating the final price to reach the upper end of this range. This development is expected to considerably enhance the company’s value. The agreement highlights Gyrodyne’s strategic moves within the real estate sector. These recent developments reflect Gyrodyne’s ongoing efforts to optimize its asset portfolio. The company has not released any further details regarding the timeline for this transaction.

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