Home REIT directors have stepped away from their roles on the board after the publication of the trust’s overdue 2023 annual report, which has revealed further hits to the value of the trust’s property portfolio.
Net asset value fell to £216.9m from £345.9m over the financial year, which came largely due to a £71.4m decrease in the fair value of investment properties.
The overall loss before tax for the year to 31 August 2023 amounts to £118.2m.
Following the publication of the overdue results, board members Peter Cardwell, Lynne Fennah, Simon Moore and Marlene Wood have all stepped down from the board.
The trust’s shares have remained suspended since early 2023, after it was unable to publish its results for the 2022 financial year on time.
See also: Home REIT repays Scottish Widows loan
Michael O’Donnell, chair of Home REIT, said: “The publication of the 2023 Annual Report and Accounts is a further positive step toward the relisting of the company’s shares.
“We remain focused on optimising the value of the portfolio and maximising returns to shareholders, while keeping disruption to underlying residents to a minimum, in line with the company’s Managed Wind-Down strategy.
“The company has made significant progress in recent months, with debt now fully repaid and the remaining portfolio launched for sale. I would like to once again thank shareholders for their ongoing patience as we continue to work towards the resolution of the remaining challenges facing the company.”
Since August 2023, the trust has sold or exchanged on the sale of 1,622 of its properties in a bid to pay down its borrowings, raising £244.1m.
As part of the firm’s managed wind down process, its remaining property portfolio of 851 assets is currently being marketed for sale, being independently valued in excess of £175m.
Home REIT has received a pre-action letter from Harcus Parker on behalf of a group of shareholders in the trust.
The trust’s board said it intends to “vigorously” defend itself in respect of the threatened litigation and has denied the allegations made against it.
Meanwhile, it reaffirmed its intention to bring legal proceedings against its former investment adviser, having issued pre-action letters last year to Alvarium Fund Managers (UK) Limited and AlTi RE Limited on 12 April 2024 and to Alvarium Home REIT Advisors Limited.