Home REIT, the investor in homeless accommodation, has reported its maiden results after launching in October 2020.
The group raised £240m in an initial public offering (IPO) and has since spent all the proceeds on amassing a portfolio of 572 properties with 3,019 beds.
Highlights from the results are:
- Net asset value (NAV) and EPRA net tangible asset (NTA) per ordinary share increased to 102.8 pence as at 28 February 2021, an increase of 4.9% from the 98.0 pence at the time of the company’s IPO.
- The portfolio was valued at £243m at 28 February 2021, an increase of 4.32% on the acquisition price.
- Profit before tax of £11.4m.
- Secured a 12-year debt facility of £120m with Scottish Widows at a fixed rate of 2.07% per annum.
- 3,019 beds provided across 572 properties
- Average weekly rents of £86 per bed
- Average building size comprises 5 bed spaces and is either a house or small apartment block
- Assets diversified across different sub sectors within homeless accommodation ranging from drug and alcohol abuse, domestic abuse, prison leavers, general needs poverty and those with mental health issues
- Let to registered charities, housing associations, community interest companies and other regulated organisations, which have a proven operating track record in providing low-cost accommodation to the homeless. They also provide care, support, training, and rehabilitation at the properties to provide vulnerable homeless people with the skills and confidence to reintegrate back into society
- All the rent is funded by support from local and central government
- Portfolio is 100% let and income producing
- Rent collection levels were 100%
- Average net initial property yield of 5.83% (including acquisition costs)
- Long weighted average unexpired lease term (WAULT) of 25 years
- 100% of the income is index-linked
- Geographic diversification across 66 different local authorities in the UK
Post balance sheet
Since 28 February 2021, the group has acquired 21 new assets totalling £33.1m (net of purchase costs) across various geographical locations in London and the North West, South West, East, and West Midlands regions of England. These properties provide over 230 further beds for vulnerable homeless people whose circumstances cover a range of sectors.
A first interim dividend of 0.83 pence per share was paid in March 2021. The company said it was on track to pay a minimum total dividend of 2.5 pence per share for the financial period from IPO until 31 August 2021 and a minimum total dividend of 5.5 pence per share for the financial year ending 31 August 2022.
HOME : Home REIT reports maiden results
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