Orava Residential REIT PLC's board is considering an alternative to its current real estate investment trust structure and business model following weak and negative financial results as well as falling share prices in the 2016-17 period.
The Helsinki-based trust reported a loss of roughly €2.8 million during the 12-month period, versus a €1.5 million profit in the previous year. Loss per share came to 29 cents, from earnings per share of 17 cents in 2016.
The board has identified and evaluated several structural and business models in order to improve the company's operational prerequisites, financial results and its share price in the coming years.
The board deems its current structure as not ideal for the company's future development and is, therefore, looking to commence investigations to convert the residential REIT into a real estate investment company whose share would be quoted on the main list of the stock exchange. It will also start negotiations with the stock exchange, Financial Supervisory Authority and financiers.
Depending on the initial investigations, the board will take a decision on tabling the proposal for a restructuring to its shareholders at an extraordinary general meeting.