REG - Home REIT PLC - Trading Statement

Home ReitAnnouncement

01/09/2025 07:00

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RNS Number : 3302X  Home REIT PLC  01 September 2025

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1 September 2025

Home REIT plc

("HOME" or the "Company")

Trading Update

 

The Board of HOME and AEW UK Investment Management LLP ("AEW" or the
"Investment Manager") provide a trading update for the Company.

 

Financial Position Update

·      As at 31 July 2025, the Company had £9.2m of cash.

·      Since the start of 2025, the monthly gross rent received has
averaged approximately £1.1m per month.

·      Rent collected and allocated for the month of July was
approximately £1.3m.(1)

·      The split between gross rent collected by Operating Leases and
Management Agreements is £0.53m and £0.74m respectively (2)

·      The Company's cash together with rental income are expected to be
sufficient to fund the Company's operational expenses and fees during the
managed wind-down and for the next twelve months.

 

 (1) Please note all rent collected on management agreements are reported on
a gross basis, before operating expenses and as stated by the property
managers at the end of each month. The amount is recorded on a cash-received
basis by the property managers for the respective month.

(2) On average Property Management fees are approximately 10% of gross rent.

 

 Asset Management Update

·      As announced on 22 August 2025, the Board and AEW have agreed a
revised investment management agreement aligned to the Company's managed
wind-down strategy and ongoing sale process.

·      As at 31 July 2025, the number of properties in the portfolio
totalled 853.

·      Asset management initiatives continue to focus on maximising the
value and liquidity of assets while prioritising activities associated with
health and safety and compliance.

 

Wind Down and Portfolio Sale Update

·      The Managed Wind Down strategy continues to progress, with
detailed due diligence on the property portfolio continuing.

·      The Company anticipates that the portfolio sale process will
conclude in Q4 2025.

·      It is the intention of the Board that capital will be returned to
Shareholders upon the completion of the realisation strategy. Shareholders
should be aware, however, that the ability of the Company to
make distributions to Shareholders may be constrained whilst the Company
faces potential shareholder group litigation.

 

 

 

Historic Accounts Update

·      The Company expects to publish the outstanding unaudited interim
results for the period ended 29 February 2024 and the annual report and
accounts for the year ended 31 August 2024 during September 2025, and the
unaudited interim accounts for the period ended 28 February 2025 in the fourth
quarter of 2025.

·      The Board and AEW have begun planning for the preparation of the
31 August 2025 financial statements and the associated audit of the Annual
Report and Accounts.

·      The Board and AEW remain committed to the restoration of trading
in the Company's ordinary shares as soon as is practically possible. Following
publication of all the outstanding financial results an application to the FCA
for restoration of the Company's listing will be made.

 

Litigation:

·      There have been no material changes to the potential shareholder
group litigation or the FCA investigation in recent months. Any relevant
announcements in this regard will continue to be made to the market at the
appropriate time.

·      In October 2023, a pre-action letter of claim was received by the
Company from Harcus Parker Limited on behalf of a group of current and former
shareholders of the Company. No legal proceedings have been issued at this
stage. As announced in April 2024, the Company has issued a comprehensive
response to this pre-action letter and correspondence is continuing between
the parties.

·      It should be noted that the Company intends vigorously to defend
itself in respect of the threatened litigation and has denied the allegations
made against it.

·      As previously announced, the Company intends to bring legal
proceedings against those parties it considers are responsible for wrongdoing.
The Company has issued pre-action letters of claim to Alvarium Fund Managers
(UK) Limited (in administration) (its former alternative investment fund
manager), AlTi RE Limited (in administration) (its former investment adviser's
principal) and Alvarium Home REIT Advisors Limited (in liquidation) (its
former investment adviser). The Company expects to retain sufficient capital
resources to meet its ongoing corporate costs and to provide the Company with
sufficient resources to pursue legal action against those it considers
responsible for wrongdoing.

·      The Company cannot comment any further on these issues at this
stage as to do so may prejudice the Company's position in any potential
proceedings. Any relevant announcements in this regard will be made at the
appropriate time.

 

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: www.homereituk.com
(http://www.homereituk.com)

 

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