Ires Reit incurred €900,000 of costs last year dealing with an activist campaign by Vision Capital and expected to incur a similar expense this year, according to its latest annual report, published on Wednesday.
Cost this year would have included fees of various advisers and holding of an extraordinary general meeting (egm) in February, at which Vision’s resolutions were voted down. It had proposed replacing five directors and had sought to push through a resolution for the board to make all efforts to sell or break-up the company within two years.
Both sides reached a settlement earlier this week, which will see Ires support the nomination of two Vision candidates to the board at the apartment owner’s annual general meeting (agm) next month, at a time when the company is carry out a strategic review.
“While the board remains confident in the long-term prospects and strategy of the company, the board recognises that the company, like many real estate focused companies, faces several challenges and opportunities, influenced by factors including macroeconomic conditions, regulatory frameworks, and commercial market conditions,” chairman Hugh Scott-Barrett said in an annual general meeting notice issued on Wednesday.
“The board recognises there is a requirement for change in the current business model and remains open to exploring all scenarios in the strategic review where shareholder value can be maximised. In this regard, the Strategic Review comprises a comprehensive consideration of all strategic options available to the company to maximise value for shareholders, with the potential to unlock the inherent value contained within the Ires portfolio of high-quality residential assets and the operating platform.”
The annual report also disclosed that outgoing chief executive Margaret Sweeney’s remuneration rose 7.4 per cent last year to €1.07 million, driven by a 15.7 per cent increase in her basic pay.
Her successor, Eddie Byrne, who formally takes over at the start of next month has been appointed on a base salary of €475,000, but that may increase as he gains experience in the role, according to the report.
He may receive a maximum annual bonus of 150 per cent of salary and stock awards of as much as 135 per cent of salary – in line with Ms Sweeney’s variable pay opportunity.
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