Home Reit has initiated a “formal and phased” succession process of its board.
In the first of a planned series of monthly updates, the trust said a senior independent director is expected to join the board “in the coming weeks”, who would then lead the succession process.
The board anticipates that all of its members will depart in the next 12 months with the majority expected to be replaced by the time its shares have been restored, currently expected to be the end of 2023 at the earliest.
See also: Consolidation, overcrowding and widening discounts: Do investment trust boards need to step up?
The update also shone a further light on the trust’s financial situation. Home Reit collected just 7% of the £13.2m rent due in the three months to 31 August 2023.
It follows the appointment of AEW as investment manager and alternative investment fund manager in August. Alongside the appointment, Home Reit amended its investment policy to no longer focus solely on social housing, but instead invest in properties for ‘any form of residential use’ as it attempts to return value to shareholders.
As part of the new approach, AEW has now completed its engagement with tenants and is now conducting a due diligence process to improve rent collection.
The investment manager is also engaging with liquidators of two of its largest tenants, Redemption Project CIC and Serenity Support CIC, to “unlock opportunities to re-tenant” and “carry out other asset management initiatives”.
On 4 August, Home Reit sold 40 properties at auction for £4.8m as part of a stabilisation process. In today’s monthly update, the trust said it expects further sales in the near term.
The beleagured trust maintained it does not expect to be in a position to publish its delayed annual results, which led to the suspension of its shares in January, until late 2023 at the earliest.
See also: Home Reit rent collection drops to 7% as board considers change to investment policy
