Home REIT (HOME) H2 2024 earnings summary

Executive summary

• The year was marked by a managed wind-down strategy, with the objective to sell all assets and return capital to shareholders after repaying debt, following failed refinancing efforts and ongoing legal and regulatory challenges.

• Significant board changes occurred, with new non-executive directors appointed and legacy directors stepping down after the publication of delayed financial statements.

• The company faced ongoing FCA investigation and potential group litigation, impacting its ability to make distributions to shareholders.

Financial highlights

• Loss before tax for FY24 was £25.2 million, a significant improvement from the £118.2 million loss in FY23.

• Net asset value (NAV) per share decreased by 11.6% to 24.25p (2023: 27.43p), with total NAV at £191.7 million.

• 1,098 properties were sold for £140.6 million, reducing the portfolio from 2,473 to 1,375 properties.

• Total borrowings reduced to £93.8 million after repaying £126.2 million during the year; all loans and fees were fully repaid post year-end.

• No dividends were paid for FY24.

Outlook and guidance

• The managed wind-down strategy aims to complete the sale of the remaining portfolio by Q4 2025, with capital returns to shareholders dependent on the resolution of litigation and FCA investigation.

• The company will not make further investments and will only incur capital expenditure necessary to protect or enhance asset value.

• Restoration of listing on the London Stock Exchange is planned after publication of all outstanding financial information.