This article is from the Australian Property Journal archive
LENDLEASE shareholders have slammed the company with a first strike and protest vote against the re-election of board members, after the property giant posted a $232 million full-year loss as it moves through a transformational period.
More than a third of shareholders voted against the re-election of Phil Coffee and Elizabeth Proust, both long-term members of the board, while nearly 40% voted against the remuneration report, well above the 25% threshold required for a strike.
It means that if Lendlease is hit with a second consecutive strike next year, a board spill motion would be triggered that forces every board member to stand for re-election.
Lendlease announced a $232 million loss for FY23 in August, due to retrospective legislation in the United Kingdom/, difficult trading conditions, provisions against prior projects and lower property valuations.
The company has been moving towards an investment-led business in recent years, since mid-2021 under the guidance of CEO Tony Lombardo.
Chairman Michael Ullmer told the company’s annual general meeting that, “The board and I acknowledge that securityholder expectations were not met, and understand the frustration felt”.
“Let me assure you that the board and executive leadership team are focused on delivering the underlying drivers of sustained performance – continuing to execute on the strategy and see Lendlease thrive into the future.
“Simplifying the business and restoring the group’s return on equity to the target range of 8% to 10% from FY24 remains, apart from health and safety, our most important objective.
“Despite the challenging environment, your company has the right strategy in place, with our pivot to becoming an investments-led company repositioning Lendlease to achieve more sustainable performance, and, ultimately, more sustainable returns for securityholders.”
The company’s share price has plunged from more than $19 million on the eve of COVID to be sitting at $6.85 on Friday.
Lendlease laid off 740 jobs globally in July in a bid to save $150 million per year.
Lendlease joined a growing line of companies that have been whacked by shareholders with a first strike this AM season, such as Qantas, Woolworths, and Tabcorp.
Also getting a first strike on Friday was holiday parks and retirement villages owner Ingenia, with 35% of shareholders voting against its remuneration report.
“The 2023 financial year was one of significant challenge and transition for Ingenia as we moved from our previous focus on acquisition to one of integration, putting in place the building blocks to significantly scale our land lease development platform and operations,” Ingenia chairman Jim Hazel said.
Macro-economic conditions continued to impact the business and led to changes in expectations relating to our performance in the second half of the year.
Rising interest rates, inflationary pressure, significant rainfall and extended construction timeframes all presented real and significant headwinds for the group.
