By Joe Hoppe
Home REIT said rent collection in October, including arrears, represented 18% of the rent invoiced for the month, and that it has exchanged on several sales of properties.
The real-estate investment trust said Monday that at a public auction on Nov. 2, it exchanged on the sale of 14 properties for around 9.0 million pounds ($11.1 million), with further property disposals expected at two auctions this week.
At the end of October, cash balances stood at GBP15.3 million, of which GBP2.7 million is unrestricted.
Investment managed AEW continues to develop its strategy for non-performing tenants during Home REIT’s stabilization period. The trust said AEW is assessing all strategies available for tenants that aren’t engaging constructively and withholding payment, including serving statutory demands and notices of forfeiture on selected tenants.
Home REIT had said on Sept. 4 that AEW has engaged with all of its tenants and carried out a number of actions to begin inspecting and valuing its portfolio. The manager is focused on stabilizing Home REIT’s property portfolio and financial condition, and plans to maximize income and capital returns.
Due to the under way inspection program, enhanced audit requirements and the application of revised accounting policies, Home REIT’s management now expect to publish its outstanding accounts in early 2024. Shares in the company are temporarily suspended as its auditor BDO LLP completes an enhanced set of procedures, delaying the publication of its fiscal 2022 results.
Home REIT previously said it received a report on Feb. 15 on rent collection and the operational performance of its portfolio following a detailed review by specialists. The report highlighted a serious deterioration in rent collections for the quarter to November 2022 and serious challenges in rent collection for December and January, the company said, with only 23% of the November quarter rent collected. Rent collection forecasts are also highly uncertain, it said at the time.
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