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Vision Capital Calls for Major Changes at IRES Ahead of Annual General Meeting

Vision Capital Corporation, a significant shareholder in Irish Residential Properties REIT plc (IRES), owning approximately 5.0% of the company’s ordinary shares, has issued an open letter to IRES shareholders expressing concerns about the company’s effectiveness and corporate structure. The letter also outlines Vision’s intentions for voting at the REIT’s upcoming Annual General Meeting on May 4th, 2023.

In the letter, Vision argues that IRES has become an increasingly ineffective platform and has failed to address both shareholder interests and the critical needs of the Irish housing market. As one of Ireland’s largest owners and operators of affordable and mid-market multifamily apartments, IRES has the potential to significantly contribute to the country’s housing stock.

Vision claims that the REIT’s current corporate structure, as a publicly-traded company, contains numerous inefficiencies that prevent it from effectively addressing Dublin’s severe housing shortage. The shareholder believes that IRES could unlock significant value by transitioning to a private entity with a different corporate and capital structure.

The letter also highlights the market price of IRES’ ordinary shares trading at a significant discount to the market value of the real estate it owns and its operating platform. Vision accuses the IRES Board and management of neglecting fundamental structural issues and benefitting disproportionately from the company’s compensation structure, which disincentivizes them from pursuing necessary changes.

Vision has been an IRES shareholder since 2014 and has actively engaged with the company since July 2021. The firm claims to have been continually misled, cajoled, and stymied in their efforts by IRES’ Board and management.