Annual Financial Report
Summary by AI BETAClose X
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION
25 February 2026
Home REIT plc (the "Company")
2025 Annual Report and Accounts
Home REIT's Annual Report and accounts for the year to 31 August 2025 are today being made available to shareholders and published on its website at https://www.homereituk.com. The results have also been submitted to the Financial Conduct Authority's National Storage mechanism and will be available shortly for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Michael O'Donnell, Chair of Home REIT, said:
"The Board remains fully committed to securing the best possible outcome for shareholders. Over recent months, together with AEW, we have made significant progress in progressing the Company's Managed Wind-Down strategy, not least entering exclusivity with Patron Capital for the sale of the majority of the portfolio. While it remains the objective of the Board to ensure the Company can return available capital to Shareholders as soon as possible upon completion of the realisation strategy, we feel it is important to remind Shareholders that this may be constrained by a range of factors, including the prospect of potential litigation."
Financial Results
For the year to 31 August 2025:
· The portfolio was independently valued at £154.9 million as at 31 August 2025 (2024: £265.4 million) following property sales.
· In addition to the sale of 522 properties for gross proceeds of £97.0 million, the remaining portfolio experienced a like-for-like decrease of £11.0 million over the year driven by general residential property movements and an updated valuation methodology for certain properties.
· Loss before tax of £30.6 million (2024: loss of £25.2 million), the key drivers of which were general and administrative expenses, property level operating expenses, and a decrease in the fair value of property.
· A 16% decrease in net asset value ("NAV") per Share to 20.38 pence as at 31 August 2025 (2024: 11.6% decrease to 24.25 pence) resulting from the loss for the year.
· The Group held unrestricted cash balances totalling £9.6 million at 31 August 2025 (2024: £6.2 million).
· The Group repaid all of its outstanding borrowings to Scottish Widows and all associated interest and the deferred fees of £9.0 million during the year.
Portfolio sale update
As announced on 13 November 2025, the Company is in exclusivity with Patron Capital in respect of the disposal of approximately 700 of the Company's portfolio of assets. The remaining properties have been valued at £17.6 million in the 31 August 2025 Consolidated Statement of Financial Position and are expected to be substantially sold through the auction market during the first half of 2026.
While discussions with Patron Capital are ongoing, there can be no certainty that a transaction will be agreed upon. AEW continues to undertake asset management initiatives focused on adding value to the portfolio including health & safety and compliance initiatives, improved tenant and manager quality, increased rent collection and preparations for sale.
Return of capital to shareholders
As shareholders are aware, the Company has faced the ongoing prospect of potential group litigation for some time. That prospect has not receded. Separately, but in addition, the recent announcement of the Serious Fraud Office ("SFO") also serve to illustrate the complex and uncertain environment in which the Board is required to make decisions.
It remains the objective of the Board to ensure the Company can return available capital upon completion of the realisation strategy as soon as possible.
However, we must remind shareholders that the ability to make distributions may be constrained by the circumstances facing the Company, including the uncertainties of potential litigation described above, which may result in returns of capital taking place over a longer period. The Board continues to take professional advice on the options that would enable available capital to be returned to shareholders in a way that is transparent, cost effective and consistent with the Board's legal and fiduciary duties and obligations as directors of the Company.
We understand the uncertainty regarding the quantum and timing of the return of available capital may be a source of further disappointment to shareholders.
As we have previously disclosed, the Company intends to retain capital to meet corporate costs and allow it to pursue legal action against those who may be liable for the losses it has suffered, subject to a commercial assessment of the cost-benefit analysis.
Potential litigation
There have been no material changes with regards to the potential shareholder group litigation, the FCA investigation, or the Company's pursuit of legal action. Any relevant announcements in this regard will be made at the appropriate time.
As we announced on 14 January 2026, the Company understands that the SFO made arrests and raided properties on that day related to people formerly associated with the Company. The Company continues to provide all assistance that it is able to the SFO as it pursues its investigations.
Restoration of listing
The Company expects to file its 2025 interim accounts in the first quarter of 2026. The Company will apply to the FCA for a restoration of its listing and the recommencement of trading on the London Stock Exchange following publication of its outstanding information.
FOR FURTHER INFORMATION, PLEASE CONTACT:
|
FTI Consulting (Communications Adviser) Dido Laurimore Bryn Woodward Oliver Harrison |
+44 (0)20 3727 1000 |
The Company's LEI is: 213800A53AOVH3FCGG44.
For more information, please visit the Company's website: http://www.homereituk.com
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