Half-year 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
20 May 2026
Home REIT plc
Interim results for the period to 28 February 2026
Home REIT's Interim results for the period to 28 February 2026 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, Non-executive Chair of Home REIT, said: "I am pleased to say that we have made substantial progress in delivering the Company's Managed Wind-Down, with the completion post period end of the sale of the majority of the portfolio representing an important milestone. The Board is now establishing a path towards returning funds to shareholders and will provide further updates in due course."
Financial position update
· The loss before tax of the Group for the six-month period to 28 February 2026 was £18.0 million (six months to 29 February 2025: loss of £15.8 million)
· Net revenues of £7.9 million:
o Rental income of £9.1 million, net of an additional bad debt provision of £1.1 million and the impairment of straight-line revenue debtor of £0.1 million
· Property operating expenses of £5.9 million
· General and administrative expenses of £5.4 million of which £2.2 million related to AEW's fees and £1.8 million related to legal fees
· Decrease in the fair value of investment property of £14.6 million;
Net asset value
As a result of the loss outlined above, the NAV decreased from £161.1 million as at 31 August 2025 to £143.1 million as at 28 February 2026. The NAV per Share decreased to 18.10 pence as at 28 February 2026, a reduction of 11.2% from 20.38 pence as at 31 August 2025.
Properties have been included in the NAV as at 28 February 2026 at their subsequent sales price. Of the 850 properties held at 28 February 2026, 775 have exchanged for sale (94.5% by value) with 735 completed (90.9% by value). This provides the Directors with actual value evidence on more than 90% of the portfolio and was deemed to be the most relevant to a market view of the value of the properties.
The Directors have presented the properties held for sale without a deduction for transaction costs in line with IFRS. However, the Directors have aggregated the actual (for completed sales) and estimated (for unknown) transaction costs for all property sales and the impact on investment property, NAV and NAV per share are as follows:
|
|
Investment Property |
NAV |
NAV |
|
|
£'000 |
£'000 |
Pence/share |
|
As presented as at 28 February 2026 |
139,833 |
143,127 |
18.10 |
|
Deduct actual and estimated disposal costs |
(3,900) |
(3,900) |
(0.49) |
|
Total |
135,933 |
139,227 |
17.61 |
Outlook and Approach to the Managed Wind-Down
On 1 April 2026, the Group completed on the disposal of 706 properties to Patron Capital for £123.0 million (of which £25.0 million was deferred for one year). The Group auctioned another 69 of the remaining 144 assets in March and April 2026 with total proceeds of £9.2 million and expects to conclude most of the remaining auction sales by the end of June 2026.
Return of capital to shareholders
The Company has previously indicated that the ability of the Company to make distributions to shareholders continues to be constrained whilst the Company faces potential group litigation or other claims.
A pre-action letter of claim was sent to the Company by Harcus Parker Limited on behalf of certain current and past shareholders of the Company in October 2023. No legal proceedings have been issued at this stage and correspondence is continuing between the parties. The Company continues to incur significant costs defending itself and its former directors from shareholder related potential litigation, which will ultimately affect any return of capital to shareholders.
As announced on 13 February 2024, the Company was notified by the Financial Conduct Authority of its commencement of an investigation into the Company, covering the period from 22 September 2020 to 3 January 2023.
The Company expects that any return of capital to Shareholders will follow the commencement of a liquidation process. Ernst & Young LLP continue to advise on preparations for the Company to enter a solvent member's voluntary liquidation. Any future proposal by the Company to enter liquidation remains subject to:
(a) alignment with the continued Managed Wind-Down of the business, including the sale of remaining properties in the portfolio, with a view to maximising realisations for the benefits of all stakeholders;
(b) continued engagement with key stakeholders, including shareholders of the Company, the FCA and SFO; and
(c) a detailed assessment of the financial position of the Company and its subsidiaries at the time of any future resolution(s) put to shareholders for the Company to enter liquidation, supported by professional advice.
The listing of the Company's shares would subsequently be cancelled in conjunction with any liquidation process.
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: www.homereituk.com
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