Orava Residential Real Estate Investment Trust PLC said Finland's Financial Supervisory Authority has confirmed the company will no longer be considered an alternative investment fund after implementing its planned structural changes.
As part of its move to streamline its structure and improve operational efficiency, the Finnish residential real estate investment trust is planning to, among other measures, remove all references to itself as a REIT and revoke existing rules for its real estate investment operations.
The company's board is expected to approve a new strategy to allow the company to focus on, in addition to its investment activities, industrial activities, such as apartment rental operations and project development.
Orava announced in February that it was evaluating strategic alternatives to its current REIT structure following negative financial results and declining share prices in the 2016-17 period.
The board plans to convene an extraordinary general meeting to make a final decision on the restructuring, the company said in a release.