Home REIT (HOME) H1 2023 earnings summary

Executive summary

• Faced unprecedented challenges including tenant arrears, liquidations, share suspension, and regulatory investigations, leading to significant financial losses and a managed wind-down strategy.

• AEW appointed as new Investment Manager and AIFM in August 2023, replacing Alvarium FM and AHRA after findings of mismanagement and undisclosed issues.

• Shareholders approved a new investment policy in September 2024 to realise all assets and return capital, following failed refinancing and ongoing litigation risks.

Financial highlights

• Acquired 234 properties for £104.1m, increasing the portfolio to 2,473 properties; portfolio valued at £422.9m as of 28 Feb 2023, down 7% like-for-like from Aug 2022.

• Loss before tax for HY23 was £108.1m (HY22: £34.7m profit; FY22: £474.8m loss); NAV per share fell 34.4% to 28.70p.

• No dividends paid for HY23; previous interim dividend of 1.38p per share paid in Jan 2023 for FY22.

• LTV at 59.1%, above policy cap and loan covenants; unrestricted cash fell to £8.9m.

Outlook and guidance

• Managed wind-down strategy approved, with all assets to be sold and proceeds used to repay debt and return capital to shareholders.

• Distributions to shareholders constrained by ongoing litigation and FCA investigation; timing and mechanism for capital return to be determined.

• Remaining portfolio is being marketed for sale, with encouraging interest and non-binding offers received.