PRS REIT has announced that chairman Steve Smith will step down at its upcoming AGM as part of a series of changes to the board’s structure to appease a group of activist investors.
Last month, the REIT received a requisition letter from Harwood Capital Management, Waverton Investment Management, CCLA Investment Management, Alder Investment Management and CG Asset Management, requesting the board of the REIT convene a general meeting to vote on a motion to remove Smith and non-executive director Steffan Francis from the REIT’s board.
The requisition letter also requested shareholders vote to approve the appointment of Robert Naylor as non-executive chairman and Christopher Mills of Harwood Capital Management as a director of PRS REIT.
Earlier today, the board of PRS REIT said the requisition notice had been withdrawn after an agreement was reached with the requisitioning shareholders and following discussions with other shareholders.
The REIT confirmed that Smith, who is nearing the end of his term as non-executive chairman, will step down at the company’s upcoming AGM and Geeta Nanda, who is currently a senior independent director at PRS REIT, will become interim chair at the meeting and lead the appointment process for a new permanent, independent, non-executive chair.
The REIT confirmed that Naylor and Mills will also be appointed to the board as non-executive directors after the announcement of full-year results on or around 8 October and proposed for election at the company’s AGM.
The AGM to approve the election of all directors of the newly constituted board is expected to take place in early December.
In a statement, the board of PRS REIT said: “The board wishes to thank Steve Smith for seven years of leadership of the board. Steve has successfully led the PRS REIT since the IPO through a period of rapid expansion, and the board believes the company’s portfolio of single-family rental homes is now the largest of its kind in the UK, providing much needed high-quality, professionally-managed housing for families across the country.
“Steffan Francis will remain as a non-executive director, ensuring continuity of property experience. The succession plan for Steffan Francis and Rod MacRae, currently scheduled for 2025 with their tenure coming up to nine years of service, will be conducted in accordance with the AIC code of corporate governance and will balance the appropriate skills required.”
