Home REIT posted a pre-tax loss of £474.8m for the financial year ended 31 August 2022, the company revealed earlier today as it published its overdue accounts for the period.
The business, which announced it was embarking on a managed wind down in September following shareholder approval, reported its NAV increased from £247.9m to £345.9m as at 31 August 2022. However, once the net proceeds from a share issuance during the period of £601.2m were taken into account, its NAV decreased by £503.2m from the restated August 2021 NAV.
In June, Home REIT announced it had been unable to secure a refinancing of its £250m debt facility with Scottish Widows on terms it could recommend to shareholders, which led to the managed wind down of the business.
Following a series of property sales, Home REIT has managed to reduce its loan balance with Scottish Widows to £72m as at 30 September 2024.
Michael O’Donnell, chair of Home REIT, said: “Whilst the board is pleased to finally be in a position to publish the report and accounts we share shareholders’ frustrations about the progress of the company. Despite substantial efforts to stabilise the business, the company continues to face extensive financial and operational challenges. Against this backdrop and reflecting the expected reduced size of the company’s portfolio, the board concluded that the best course of action to optimise remaining shareholder value is the managed wind-down.
“Our priority now is to optimise the value of the portfolio and maximise returns to shareholders, while keeping any disruption to residents to an absolute minimum. Despite the challenges faced by the company, the work undertaken over the past 12 months by AEW, including asset management initiatives to enhance value, regaining control of most properties and rolling out a re-tenanting programme, has created a portfolio that, while subscale to continue as a standalone quoted entity, represents an attractive investment opportunity for investors seeking to enter the supported living and private rented sectors.
“It should be noted however that the fees incurred in defending the company against threatened litigation from a group of current and past shareholders will directly reduce the amount of capital ultimately returned to all shareholders and may impact the timing of any distribution to shareholders. I also would again like to thank shareholders for their ongoing patience and support as we strive to address, and seek redress for, the issues facing the company.”
Home REIT said it intended to publish its historical accounts before the end of 2024 and the audited annual results for the year ended 31 August 2024 will follow “as soon as is practicable thereafter”.
