Walls & Futures REIT PLC on Tuesday said its performance was ‘robust’ despite uncertainty over base rate reductions slowing progress, as its pretax profit fell.
The London-based designer and developer of specialist social housing said pretax profit was down 81% in the six months to the end of September, to $8,590 from $46,186 year-on-year.
Rent received increased by 4.0% to $64,904 from $62,407 in the previous year.
Pretax profit fell as the increase in property values fell and administrative expenses increased. Property values increased by $40,000, down from $60,000 last year. Administrative expenses rose by 27% to $101,127 from $79,485.
The net asset value per share was unchanged from March 31, at 85.00 pence on September 30.
The company said it has collected 100% of specialist supported housing rents in the first half.
Chief Executive Joe McTaggart said the ‘opportune moment’ has arrived for potential investors due to the new UK government’s target to construct 1.5 million houses over the next five years.
‘A substantial portion of these developments will be social and affordable housing, and the government is implementing policy changes in order to unlock the private capital necessary to address the housing crisis.’
He said: ‘We had anticipated that the Bank of England’s decision to reduce interest rates would inject optimism into the UK real estate market, which combined with the imperative to secure more lucrative returns, would enable us to raise fresh equity sooner. However, the shadow of escalating inflation and growing uncertainty, including over the speed of further base rate reductions, has slowed our progress.’
McTaggart said the company’s share price is negatively impacted by the lack of liquidity, and it is looking for solutions to address this.
‘While the opportunities that lie ahead are substantial and promising, we are reviewing our options to safeguard shareholder value and proactively address the evolving needs of our shareholders.’
Shares in Walls & Futures REIT are quoted at 12.50 pence and last traded at 15.00 pence on December 16 on the Aquis Exchange.
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