Home REIT (HOME) H1 2024 earnings summary

Executive summary

• Interim results cover the period from 1 September 2023 to 29 February 2024, with a focus on stabilising financial condition and maximising returns through UK residential real estate investments.

• A new investment policy was approved on 16 September 2024, shifting the objective to an orderly realisation of all assets and returning cash to shareholders after debt repayment.

• The company faced significant challenges, including tenant arrears, non-performing tenants, investigations, and suspension of share trading.

• AEW was appointed as the new Investment Manager and AIFM, replacing previous advisers.

Financial highlights

• Portfolio independently valued at £340.7 million as of 29 February 2024, down from £412.7 million at 31 August 2023.

• 394 properties sold for gross proceeds of £74.8 million during the period, reducing the portfolio from 2,473 to 2,079 properties.

• Loss before tax for the six months was £8.8 million, a significant improvement from a £108.1 million loss in the same period last year.

• Net asset value per share decreased by 4% to 26.32p as at 29 February 2024.

• No dividends were paid for the period.

Outlook and guidance

• The managed wind-down strategy aims to sell all assets and return capital to shareholders after debt repayment.

• Non-binding offers for the full portfolio were received in February 2025, with the sale process expected to conclude in Q4 2025.

• The ability to make distributions is constrained by ongoing litigation and FCA investigation.