AEW re-tenants 10% of Home REIT portfolio as rent collection falls to 3%
Home REIT no longer has any exposure to Redemption Project CIC, one of its non-performing tenants that had not paid any rent for 2023, after it surrendered all of its leases.
In its second monthly update today (2 October), the trust said rent collection fell to 3% during the month, down from 7% in the three months to August, as some tenants' financial strength continued to deteriorate.
«AEW continues to assess strategies for non-performing tenants and continued non-payment of rent by some tenants and will consider all actions available to the company to improve rent collection in future periods,» the board said.
The trust no longer has any exposure to Redemption Project CIC, one of its non-performing tenants that had not paid any rent for 2023, after it surrendered all of its leases.
Home REIT begins 'formal and phased' board succession process
Tenants in liquidation account for 21% of Home REIT's annual contracted rent as at 29 September, including Supportive Homes CIC, Gen Liv UK CIC, Lotus Sanctuary and Serenity Support CIC, with more tenants expected to enter into liquidation in the short term, the board said.
Home REIT said it is in discussions with prospective tenants and «quality providers» of social housing and support services, with «stringent» covenant analysis and due diligence set to be undertaken on all proposed tenants.
AEW is still developing its strategy for non-performing tenants, the board said, as its ongoing inspection programme provides evidence of underlying occupancy and suitability of property for use.
As of 27 September, Vibrant Energy Matters completed inspections of 16% of all internal properties for their condition, compliance and occupancy, in parallel with valuations being undertaken
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