Irish Residential Properties REIT is to launch a strategic review, with mergers, sell-offs and the REIT’s listed status on the table.
The board of IRES said today that “now is an appropriate time to commence a strategic review”, following extensive discussions with key shareholders over the past few months.
It added that the aim would be to unlock the value of the €1.426bn portfolio, which includes almost 4,000 properties.
“This will include, but not be limited to, new strategic initiatives, consolidation, combinations, mergers or other corporate action, a review of the company’s status as a listed REIT, the sale of the entire issued share capital of the company, and selling the company’s assets and returning value to shareholders,” it said.
The board said it believed the IRES share price (currently at €1.08) and discount to NAV (€1.66 per share) “fail to reflect the underlying value of its assets, platform, and business of the company”.
The review will be launched “as soon as practicable” in Q1 2024, following the publication of its 2023 results.
The REIT is facing an existential threat from activist shareholder Vision, which holds around 5% of its stock.
Vision wants to take control of the board by taking five of its nine seats, and force through a sale of assets.
The board has recommended shareholders vote against Vision’s plans.
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