Walls & Futures REIT aims for long-term secure income
Last updated: 08:36 10 May 2023 BST, First published: 15:55 26 Feb 2021 GMT
Snapshot
- Walls & Futures REIT finalising fundraise and broadening of investment strategy
- Walls & Futures REIT happy to redeploy capital to meet supported housing need
About the company
Walls & Futures REIT PLC is an ethical housing investor and developer on a mission to address the unfulfilled demand for specialist supported housing in the UK.
The company designs, funds and developes specialist supported housing which is let on Full Repairing and Insuring (FRI), inflation linked leases to local authorities, registered providers and charities.
How it is doing
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.
Walls & Futures REIT PLC (AQSE:WAFR) (W&F) has called a general meeting to vote through proposals that will see Vengrove become its investment manager with a remit to raise up to £25mln in new funding for the REIT.
Under the proposals, the Pax Homes business will be sold to current chief executive Joe McTaggart and structured in a way that will provide a reasonable return for the investment made to date, said the company in a statement.
Walls & Futures REIT PLC (AQSE:WAFR) said it made fantastic progress since the launch of Pax Homes - flexible accommodation designed around the needs of people with autism.
The update was contained in the full-year results statement from the ethical housing investor and developer.
What management says
Joe McTaggart, chief executive of Walls & Futures REIT PLC (LON:WAFR), says coronavirus has highlighted the importance of supported housing. There is a huge need, he adds, and as properties are on long-term contracts there has been less disruption than seen in other areas of the commercial property market. The company has just sold a property in Wimbledon and intends to re-deploy the proceeds into supported housing. McTaggart adds the trust’s recently completed Oxford development is almost a blueprint for how supported development projects should look in future. “It’s state-of-the-art,” he says and reflects the company’s build your own ethos. That way you get a better quality product, pricing and yields, he says.