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LONDON (Alliance News) - K&C REIT PLC on Friday said it is eyeing opportunities to buy buildings leased to operators in the residential care property segment, and tabled plans to cancel executive option arrangements and issue restricted preference shares in lieu.
The real estate investment trust said it has reviewed all the sub-categories in the residential sector, and remains positive on both the private rented sector and the retirement residential market. Given "growing demand" for residential care property and the income yield available to investors K&C REIT said it will consider buying more buildings in this sector.
K&C said it has agreed conditionally to authorise the creation and issue of restricted preference shares and to cancel executive option arrangements as well as to amend its articles of association so it can issue the restricted preference shares in part of the initial executive options.
Currently K&C REIT incentivises executive through the granting of initial executive options and agrees with those executives that provided they remain employees, it will enter into further option agreements with them on the same terms.
However, if K&C REIT's resolutions are passed, these options will be cancelled and restricted preference shares will be issued, which will not have voting rights or dividend rights, but will rank pari passu with ordinary shares on a winding-up or return of capital from the company.
A meeting will be held on February 20 for shareholders to vote on the pair of resolutions.
Shares in K&C REIT were untraded on Friday, having last traded at 6.50p.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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