REG - Home REIT PLC - Half-year Financial Report

Home ReitAnnouncement

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RNS Number : 9773E  Home REIT PLC  20 May 2026

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE
A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

 

20 May 2026

Home REIT plc

Interim results for the period to 28 February 2026

 
Home REIT's Interim results for the period to 28 February 2026 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, Non-executive Chair of Home REIT, said: "I am pleased to
say that we have made substantial progress in delivering the Company's Managed
Wind-Down, with the completion post period end of the sale of the majority of
the portfolio representing an important milestone. The Board is now
establishing a path towards returning funds to shareholders and will provide
further updates in due course."

Financial position update

·      The loss before tax of the Group for the six-month period to 28
February 2026 was £18.0 million (six months to 29 February 2025: loss of
£15.8 million)

·      Net revenues of £7.9 million:

o  Rental income of £9.1 million, net of an additional bad debt provision of
£1.1 million and the impairment of straight-line revenue debtor of £0.1
million

·      Property operating expenses of £5.9 million

·      General and administrative expenses of £5.4 million of which
£2.2 million related to AEW's fees and £1.8 million related to legal fees

·      Decrease in the fair value of investment property of £14.6
million;

 

Net asset value

As a result of the loss outlined above, the NAV decreased from £161.1 million
as at 31 August 2025 to £143.1 million as at 28 February 2026. The NAV per
Share decreased to 18.10 pence as at 28 February 2026, a reduction of 11.2%
from 20.38 pence as at 31 August 2025.

 

Properties have been included in the NAV as at 28 February 2026 at their
subsequent sales price.  Of the 850 properties held at 28 February 2026, 775
have exchanged for sale (94.5% by value) with 735 completed (90.9% by value).
This provides the Directors with actual value evidence on more than 90% of the
portfolio and was deemed to be the most relevant to a market view of the value
of the properties.

 

The Directors have presented the properties held for sale without a deduction
for transaction costs in line with IFRS.  However, the Directors have
aggregated the actual (for completed sales) and estimated (for unknown)
transaction costs for all property sales and the impact on investment
property, NAV and NAV per share are as follows:

 

                                             Investment Property  NAV      NAV
                                             £'000                £'000    Pence/share
 As presented as at 28 February 2026         139,833              143,127  18.10
 Deduct actual and estimated disposal costs  (3,900)              (3,900)  (0.49)
 Total                                       135,933              139,227  17.61

 

 

 

Outlook and Approach to the Managed Wind-Down

On 1 April 2026, the Group completed on the disposal of 706 properties to
Patron Capital for £123.0 million (of which £25.0 million was deferred for
one year).  The Group auctioned another 69 of the remaining 144 assets in
March and April 2026 with total proceeds of £9.2 million and expects to
conclude most of the remaining auction sales by the end of June 2026.

 

Return of capital to shareholders

The Company has previously indicated that the ability of the Company to make
distributions to shareholders continues to be constrained whilst the Company
faces potential group litigation or other claims.

A pre-action letter of claim was sent to the Company by Harcus Parker Limited
on behalf of certain current and past shareholders of the Company in October
2023. No legal proceedings have been issued at this stage and correspondence
is continuing between the parties. The Company continues to incur significant
costs defending itself and its former directors from shareholder related
potential litigation, which will ultimately affect any return of capital to
shareholders.

As announced on 13 February 2024, the Company was notified by the Financial
Conduct Authority of its commencement of an investigation into the Company,
covering the period from 22 September 2020 to 3 January 2023.

The Company expects that any return of capital to Shareholders will follow the
commencement of a liquidation process. Ernst & Young LLP continue to
advise on preparations for the Company to enter a solvent member's voluntary
liquidation. Any future proposal by the Company to enter liquidation remains
subject to:

(a) alignment with the continued Managed Wind-Down of the business, including
the sale of remaining properties in the portfolio, with a view to maximising
realisations for the benefits of all stakeholders;

(b) continued engagement with key stakeholders, including shareholders of the
Company, the FCA and SFO; and

(c) a detailed assessment of the financial position of the Company and its
subsidiaries at the time of any future resolution(s) put to shareholders for
the Company to enter liquidation, supported by professional advice.

The listing of the Company's shares would subsequently be cancelled in
conjunction with any liquidation process.

 

 

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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