Social housing trust Home Reit collected 12% of the rent it had invoiced in December, while auction sales of the trust’s portfolio continued.
In the latest of its planned monthly updates, the embattled trust said investment manager AEW was considering legal action against tenants that are not “engaging constructively and continue to withhold payment of rent”.
The Home Reit board also warned that rent collection would vary from month to month while AEW works on the ‘stabilisation’ process.
Meanwhile, the board revealed it had sold a further 98 properties at auction in December for a combined £26.5m.
A further 162 properties have exchanged on sales worth £25.7m collectively, all of which are expected to complete this month.
Total borrowings were reduced to £172.7m from £198.3m in November, while cash balances ended the year at £15.8m.
The update comes after an external inspection in December reduced the estimated value of its portfolio by £564.1m, compared to the price paid at acquisition.
In light of the revaluation, the board also published revised valuations for previous periods.
The Home Reit property portfolio was worth £412.9m at the end of August 2023, £422.9m at the end of February, and £414.4m at the end of August 2022.