Walls & Futures REIT PLC (AQSE:WAFR) said it is finalising the other elements of its planned restructuring.
The ethical housing investor said its unaudited NAV per share declined by 10.8% to 87p in the second half of its financial year ending 31 March 2023, which it said was due to the increase in UK interest rates and the broader macro-economic environment.
It said the quality of its covenants “remains strong” and 100% of rents have been collected from its specialist supported housing portfolio, which have increased in line with the inflation caps of their leases.
Having completed the disposal of Pax Homes last month, the REIT said it is “now moving forward to finalise the other elements restructuring”, which it set out in the circular on 6 February.
It said the other elements of the restructuring - the anticipated fundraise and broader investment strategy - “should enable the company to diversify our investments and mitigate potential risks, taking into account the impact of rising interest rates on commercial property values”.
Under the proposals, the company will adopt a more conventional REIT structure and appoint Vengrove SI-REIT Advisors from the Vengrove group as external investment managers and delegate to them the responsibility of raising up to £25mln in equity capital and executing the investment strategy, which will focus on ethically focused property investments rather than development.