Home REIT sells additional 98 properties for £26.5m
An additional 162 properties have been exchanged for sale at a total of £25.7m, which are expected to complete this month.
An additional 162 properties have been exchanged for sale at a total of £25.7m, which are expected to complete this month.
Shareholders progress lawsuit against Home REIT and Alvarium after portfolio revaluation
Throughout December, the trust's board said it collected 12% of rent invoiced including arrears, warning that rent collection is likely to vary on a monthly basis in the short term as investment manager AEW «continues to work on stabilising the portfolio».
AEW is also considering taking legal action against tenants that are «not engaging constructively and continue to withhold payment of rent», it added.
Last month, the trust also repaid £25.6m of debt to its lender, comprising a cash payment of £23.1m and a net break gain of £2.5m, which is being applied to Home REIT's debt repayment.
The board noted the value of the trust's break gains has «reduced significantly» due to reductions in future interest swap rates.
As of the end of December, Home REIT had total borrowings of £172.7m, comprising of an £82.4m interest-only term loan repayable in 2032 with a fixed rate of 2.07% per annum, and a £90.3m interest-only term loan repayable in 2036 with a fixed rate of 2.53% per annum.
The trust also has to pay an additional fee of 5% a year on the aggregate outstanding balances, with the fee accruing on a daily basis from 30 November 2023, the board explained. The fee is payable at the earliest of 28 June 2024 or full repayment of its loans.
As of 31 December, the trust had cash balances of £15.7m, of which £5.4m was unrestricted; and the board said it expects further sales of the property portfolio
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