Home REIT sells 14 properties at average 51% loss as inspections prolonged
In October, the trust collected 18% of rent invoiced, an increase on the previous period collection of 3%.
In its third monthly update today (6 November), the embattled trust said the sales had taken place at a public auction held on 2 November, with two more auction sales expected this week.
In total, the trust has exchanged contracts for the sale of 191 properties for £36.5m. The first auction in early August delivered a 60.6% loss, while the value of the second sale at the end of September represented an average of just 32% of the properties' purchase price.
The board of the trust, whose shares have been suspended for nearly two years, said it currently anticipates publication of the outstanding accounts in early 2024. The publication of the accounts is a prerequisite for the restoration of trading.
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The board had previously noted it did not expect to be in a position to publish the accounts until late 2023 «at the earliest», as the trust awaits the completion of its property inspection programme.
Home REIT said the process of inspections is «taking longer than initially anticipated». As of the end of October 2023, 335 inspections had been aborted due to Vibrant, the inspector, being unable to obtain access when attending properties.
The inspection programme is due to continue throughout November and December, while Jones Lang LaSalle, the external valuer, also continues to inspect properties. Currently, the trust expects to publish valuation information by the end of year.
In October, the trust collected 18% of rent invoiced, an increase on the previous period collection of 3%. However, Home REIT said rent collection can vary month on month
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