Walls & Futures REIT plc – Half Year Results for the period to 30 September 2024

Half Year Results for the period to 30 September 2024

Walls & Futures REIT plc (“WAFR”) the Ethical Housing Investor and developer, is pleased to announce its unaudited interim results for the six months to 30 September 2024.

Highlights

• Net Asset Value (NAV) unchanged at 85p per share (31 March 2024 – 85p per share)
• Property assets increased by 2% (£40,000)
• Profit of £8,590 (30 September 2023 – Profit of £45,508)
• 100% of Specialist Supported Housing rents collected

Chief Executive’s Statement

“Despite the challenging economic environment characterised by stagnant economic growth and pervasive pessimism, our real estate portfolio continues to demonstrate robust performance. We are pleased to report a 100% rent collection rate, underscoring the enduring resilience of our tenant base and the quality of our assets.

Our focus on generating long-term, indexed income from high-quality social infrastructure assets has garnered interest from potential investors. We believe that the opportune moment has arrived with the new government’s ambitious target to construct 1.5 million new homes 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.

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.

On the operational front, we acknowledge the escalating costs associated with being a publicly traded company, particularly in areas of regulation and audit. The Quoted Companies Alliance reported that the average percentage change in audit fees across all markets between 2017/18 and 2022/23 was 127%, with Aquis companies experiencing the lowest average increase of 97%. Given our current size, these increases have had a disproportionate impact on our operations.

Our share price continues to be negatively impacted by the lack of liquidity. Several sales conducted in 2024 resulted in a significant decline in price, leading to a substantial discount between the share price and our Net Asset Value. We have engaged in discussions with the Exchange and our Corporate Adviser to explore potential solutions for addressing this long-term liquidity challenge.

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.”