(Alliance News) - Irish Residential Properties REIT PLC defended its top executives ahead of its annual general meeting, after a shareholder called for changes.

Ahead of the firm's AGM on May 4, Irish Residential called on investors to vote in favour of its chair and chief financial officer staying on.

The recommendation followed an open letter by Vision Capital Corp, criticising the real estate investment trust's structure. Vision also announced its intention to vote against the election of several directors at the AGM.

Vision also plans to vote against three resolutions concerning pre-emption rights and director pay.

"I-RES has increasingly become an ineffective platform and continues to poorly address the interests of both its shareholders and the critical needs of the Irish housing market," Vision Capital said last week Wednesday.

Vision called on shareholders to vote against the re-election of Irish Residential Executive Chair Declan Moylan, Chief Financial Officer Brian Fagan, and remuneration committee members Joan Garahy and Tom Kavanagh.

Irish Residential went on the defensive on Monday. The company claimed that its current share price has been impacted by various factors, including interest rate hikes and inflation, and does not reflect its true value.

Irish Residential stated that since the start of December 2021 it has outperformed the listed European Real Estate sector by 6.4% on the STOXX Europe 600 Real Estate index. It also achieved 6.5% revenue growth in 2022.

The company said also that it has reviewed Vision's 2022 request for a formal sales process, and concluded that this was not in the best interests of its shareholders.

Irish Residential commented: "The future of I-RES is attractive, given the strong platform which has been created, alongside the underlying demand for housing and outlook for employment and the Irish economy, and the board has confidence that its strategic focus and portfolio optimisation will deliver value for shareholders."

The company added that it "will continue to engage constructively with Vision and other shareholders, and welcomes all shareholders' views."

Shares in Irish Residential traded 0.8% higher at EUR1.01 each in London on Monday afternoon.

By Emma Curzon, Alliance News reporter

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