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Real estate investment trusts

Ires Reit's Annual Meeting: A Turnaround After Years of Turmoil

Strategic Insights

— 1 min read

Shareholders gathered for Ires Reit's annual meeting last Thursday, marking a stark contrast to previous years. Despite a unanimous rejection of the slate by influential pension fund Calstrs, the entire board was returned with secure majorities. Eddie Byrne, the chief executive, faced little dissent, while Hugh Scott-Barrett, the chairman, and new director Richard Nesbitt had over 5% of the share register vote against them.

Key Takeaways:

  • The entire board was returned with secure majorities, despite a unanimous rejection of the slate by Calstrs.
  • Eddie Byrne, the chief executive, faced little dissenting voices, while Hugh Scott-Barrett and Richard Nesbitt had over 5% of the share register vote against them.
  • The Ires share price has performed well, growing 18% in the year to date, and closing the valuation gap between market capitalization and net asset value.
  • Interest rates have been coming down, improving the environment for selling units, with Ires forecasting average sales premiums of between 15 and 20% this year.
  • The government's potential reform of rent controls could have a significant impact on Ires's revenue-generating potential.
  • Asset Value Investors (AVI) and Thames River Capital are two big owners to watch, holding 6.3% and 4.6% stakes respectively.
  • AVI has a history of activism, teaming up with a group of disgruntled activists to force out the chairman and another director at PRS Reit, a UK corporate landlord.
  • Marcus Phayre-Mudge, an investor in PRS Reit, has expressed public support for activist action.

Statistics:

  • Ires Reit's share price has grown 18% in the year to date.
  • The company has forecast average sales premiums of between 15 and 20% this year.
  • The valuation gap between Ires's market capitalization and net asset value has been closed.
  • Asset Value Investors (AVI) holds a 6.3% stake in Ires Reit.
  • Thames River Capital holds a 4.6% stake in Ires Reit.

Sources:

  • Byline: Jon Ihle Agenda Previous editions of Ires Reit's annual meetings have been unsettled affairs. Not so this year. Shareholders gathered in Herbert Park hotel in Dublin last Thursday for what turned out to be a comparatively humdrum event, with little evidence in the voting of the investor disquiet that has roiled the corporate landlord in recent years.
  • BYRNE, Eddie, Chief Executive of Ires Reit.

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