Walls & Futures REIT PLC (AQSE:WAFR) outperformed its benchmark in the past year as it collected 100% of specialist supported housing (SSH) rents and 97% from the private rented sector (PRS).
Management’s strategy to sell the social housing investor and developer’s London PRS properties to fund further supported housing investments was delayed by emergency legislation during the pandemic.
The sale of two of the three properties was completed during the period, with a total of £1.3mln in cash generated before fees, part of which was used to pay down the entire £0.6mln revolving credit facility.
A fall in value of the last PRS property led to Wall & Futures reporting a 4.9% decline in net asset value (NAV) to 102p for the year to 31 March 2021, as a valuation of the property assets saw a modest fall of 1.9%. The supported housing asset valuations remained the same as a year ago.
For the fourth year running, the Aquis-listed REIT outperformed its benchmark, the MSCI UK Residential Annual Property Index, with a total return of 3.53% versus 0.57%.
Management said the intention is to scale the business so the investment strategy’s average total return of 268% is reflected in terms of operating cash flow and share price.
To date, the £1.34mln invested in SSH developments is currently valued at £2.57mln, an increase of 92%.
There was a cash outflow of £110,612 in the year, though revenues rose 7.5% to £148,420.
“Against the challenging economic backdrop caused by Covid-19, we are pleased with the performance of our portfolio,” said chief executive Joe McTaggart.
He added: “We're looking forward to announcing further partners in the coming months and continuing to build the future of specialist supported housing with the launch of our bespoke modular housing solution for autism.”