REG - Home REIT PLC - Annual Financial Report

Home ReitAnnouncement

25/02/2026 07:00

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RNS Number : 2297U  Home REIT PLC  25 February 2026

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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 (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
(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)  HomeREIT@fticonsulting.com (mailto:HomeREIT@fticonsulting.com)

 Dido Laurimore                           +44 (0)20 3727 1000

 Bryn Woodward

 Oliver Harrison

 

The Company's LEI is: 213800A53AOVH3FCGG44.

 

For more information, please visit the Company's
website: http://www.homereituk.com (http://www.homereituk.com)

 

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