Home REIT has reported a fall in the value of its property portfolio in the six months to the end of August 2025.
In the reporting period, the number of properties in the portfolio fell from 860 to 853 and the portfolio valuation fell from £169m to £155.7m.
The majority of the portfolio (70% by number of properties) was valued by JLL on a vacant possession basis with the remainder at investment value and on an individual property basis.
Home REIT said the reduction in the valuation of the portfolio was principally as “a result of adjustments to the basis of valuation for properties held at investment value”. This resulted in a reduction to the cap of vacant possession value at which these properties with leases are held.
JLL applied a discount to vacant possession value for supported living properties not on a direct lease and the overall valuation also decreased due to “specific factors for individual properties”.
Home REIT said its unaudited interim accounts for the periods ending 28 February 2024 and 28 February 2025 were expected to be published by the end of 2025.
In an update on the sale of the remaining properties held by the REIT as part of the managed wind down of the company, Home REIT said: “After an extensive marketing campaign commenced in Q4 2024, non-binding offers were received for the full portfolio in February 2025 and due diligence is progressing. The company anticipates that the portfolio sale process will conclude in the fourth quarter of 2025.
“However, there is no assurance that the portfolio sale will progress under the current expected timeline or with terms which are acceptable to the board. AEW continues to undertake asset management initiatives focused on adding value to the portfolio and preparing them for sale.”
