This article first appeared in CityAM entitled:City grandees launch bid to unseat Urban Logistics chair.
Alongside Achilles Investment Company, Waverton Investment Manager and Harwood Capital, TR Property has called a shareholder vote to unseat the chair and two directors of Urban Logistics REIT.
While many REITs use external management contracts, whereby a third-party is contracted to manage the REIT’s assets and make investment decisions, some contracts may misalign the objectives of the external manager with those of shareholders. Managers can lose sight of their primary objective, which is to generate real returns for the company’s owners and can sometimes lead to financially incontinent investment decisions.
TR Property’s fund manager, Marcus Phayre-Mudge, stated in the article: “While many REITs are making welcome improvements to governance and strengthening alignment between managers and shareholders, Urban Logistics appears to be moving in the opposite direction.”
It is possible to get external management right, with good controls including fees based on market cap and one-year – maximum – rolling management contracts. REIT boards need to take decisive actions and champion governance practices that safeguard the interest of shareholders.
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Capital at risk. Approved by Columbia Threadneedle Management Limited on 07/04/2025
