Home REIT continues to sell properties to pay off debts

The sales form part of its winding-down strategy, which was announced in July as being in the “best interests” of shareholders as it faces significant debts, the threat of legal action and a probe by the financial regulator.

Home REIT has been selling homes by the hundreds as part of a plan to bring its debts under control.

Since August last year, Home REIT has sold 987 properties and exchanged on another 315 properties, bringing in a total of £181.2m.

Earlier this month, the trust announced it had reached an agreement with Mansit Housing CIC for the surrender of leases on 68 properties rented from Home REIT.

This came a week after One (Housing & Support) CIC, a tenant of 110 properties in Home REIT’s portfolio, agreed to enter into administration after being deemed “non-performing”.

The Financial Conduct Authority also launched an investigation into Home REIT in February, covering the period from 22 September 2020 to 3 January 2023.

Earlier, the firm revealed it had been unable to secure refinancing of its existing debts on terms that it could recommend to shareholders.

Trading in Home REIT’s shares was suspended in January 2023, after it missed a deadline to publish its annual report.

At the start of this month, Fitch Ratings revised its long-term outlook to negative on another real estate investment trust, Triple Point, due to “prolonged rent arrears” involving two of its lessees.

Triple Point later cut ties with one of these, Parasol Homes, by transferring 38 properties to another provider.