Home REIT proposes investment policy overhaul as rent collection falls to 7%
Home REIT does not expect to be able to publish its audited results for the period to 31 August 2022 until 'late 2023 at the earliest'.
In a stock exchange notice published today (28 July), the board advised shareholders that if they do not approve the proposal, the recent appointment of AEW as AIFM and investment manager will not take effect.
The board also revealed rent collection for the period from 1 May to 30 June has fallen to just 7%, which it believes can be remedied by policy overhaul.
'The circle is collapsing': How a demolished house in Lancashire uncovered Home REIT's broken business model
Of immediate priority for the board is the introduction of a stabilisation period to «maximise the income and capital returns» from the trust's current portfolio.
If approved, the period would be in effect from 22 August 2023 to 22 August 2025, or a later date approved by the board, but no later than 22 August 2026.
During this period, Home REIT would undertake a programme of re-tenanting and a «rationalisation of the portfolio» in order to stabilise its financial condition.
Such a change would alter the investment policy of the trust, allowing the managers to invest in «residential accommodation assets having any form of residential use», shifting the focus away from the alleviation of homelessness in the UK, as per the current investment objective.
Following this period, the company will enter a post-stabilisation period, which will see the investment policy change again, provided the trust satisfies six factors: the portfolio is capable of being operated according to the post-stabilisation period investment policy; rent collection has stabilised; dividend payments have recommenced; the annual and interim reports and
Read more on investmentweek.co.uk
