A group of investors in the PRS REIT, representing 17.3% of the company’s issued share capital, has formally served a requisition to the company.
The PRS REIT invests in new build, family homes in the private rented sector and has a portfolio of just over 5,300 homes.
Seeking changes to the board of directors, they are proposing the immediate removal of Stephen Smith, the Non-Executive Chairman, and Steffan Francis, a Non-Executive Director. In their place, the investors propose the appointment of Robert Naylor and Christopher Mills.
The requisitioning investors have expressed their intention for the newly appointed directors, if successful, to collaborate with the existing board members. Their primary objective would be to conduct a comprehensive review of options aimed at enhancing shareholder value.
Despite the Real Estate Investment Trust’s shares rising 3% so far in 2024, it still trades at a 27% discount to Net Asset Value.
The group of investors includes Waverton Investment Management Limited, CCLA Investment Management Limited, Alder Investment Management Limited, CG Asset Management Limited, and Harwood Capital Management Limited.
Notably, Christopher Mills, one of the proposed new directors, holds the position of ultimate majority shareholder in Harwood Capital Management Limited who made the announcement on Thursday.
The requisition comes shortly after the MIGO Investment Trust added PRS to their portfolio. MIGO are a ‘trust of trusts’, specialist in identifying undervalued investment trusts.