Home REIT has sold a further 14 properties in its portfolio for a total £9m, representing an average 51% loss when compared to purchase price.
In the latest of the trust’s monthly updates, the board said the sales had taken place at a public auction on 2 November, with further sales expected this week.
Proceeds from the sales will be used to provide working capital and reduce borrowings as part of the trust’s stabilisation process, the board said.
The latest in a series of property sales takes assets sold by the trust to 191 for a total of £36.5m since the start of its stabilisation process earlier this year.
Meanwhile, rent collection improved to 18% of the amount invoiced during October, up from just 3% in September.
However, the board noted that rent collection can vary in the near term as some tenants continue to experience deterioration of financial strength and inability to meet rental payments and pay arrears.
The trust’s cash balances stood at £15.3m at the end of October, of which £2.7m is unrestricted, while the trust has a debt pile of £216.2m borrowings.
Home REIT anticipates publication of its overdue annual results in early 2024. The trust’s shares were initially suspended in January 2023 after it failed to publish its annual results.
The process of inspecting each of the trust’s property is taking ‘longer than initially anticipated’, the board said. So far, 335 inspections have been aborted due to Vibrant Energy Matters, an independent inspector, being unable to obtain access when attending properties. The inspection programme is due to continue throughout November and December.
Finally, senior adviser Mark Davies is overseeing the process to appoint a new chair. Once appointed, the chair will then oversee the appointment of a new board.