Walls & Futures REIT PLC: Final Results for the Year to 31 March 2024

Walls & Futures REIT PLC (WAFR)
Walls & Futures REIT PLC: Final Results for the Year to 31 March 2024

09-Sep-2024 / 12:00 GMT/BST


THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

 

9 September 2024

WALLS & FUTURES REIT PLC

 

 (“Walls & Futures” or the “Company”)

 

Final Results and Audited Annual Report and Accounts for the Year to 31 March 2024

Notice of Annual General Meeting

 

Walls & Futures REIT plc (Ticker: WAFR), the Ethical Housing Investor and Developer, is pleased to announce its final results and the publication of its audited annual report and accounts for the year to 31 March 2024 (the “Annual Report”). A copy of the Annual Report has been published on the Company’s website, www.wallsandfutures.com, in accordance with its articles of association, and can also be viewed through a link at the bottom of this announcement.

 

The principal activity of the group continues to be investing and developing property to meet the unmet demand for specialist social housing ("SSH") in the UK. We do not have involvement with the care delivered within the properties, which is managed by care providers approved by local authorities.

 

The Company’s Annual General Meeting for the year ending 31 March 2024 will be held at Octagon Point, 5 Cheapside, London, EC2V 6AA on 3 October 2024 at 1.00pm (the “AGM”).  The notice of the AGM (the “Notice”) will be posted to shareholders today, and a copy of the Notice will be added to the Company's website.

 

Highlights

 

  • Net Asset Value ("NAV") down 4.5% to 85p per share (2023: 89p per share)
  • Revenue £128,917, up 11.7% (2023: £115,398)
  • Loss -£43,561 (2023: Loss of -£472,765)
  • Investment property value increased by 2.4%
  • Earnings per share -1.17p (2023: -12.59p)
  • 100% of Specialist Supported Housing rents collected
  • Welcome Ross Taylor, Vengrove CEO, to the board

 

Key elements of the final results can be viewed below.

 

Joe McTaggart, CEO of Walls & Futures REIT plc said:

 

“We are pleased with the performance of our portfolio, where we collected 100% of our rents, which benefited from an increase from our inflation-adjusted leases. It outperformed the MSCI UK Residential Index in terms of income return, delivering 4.69% compared to the benchmark of 3.18%.

 

We are, however, frustrated that we have not made the intended progress on the fundraising front during the 2023-24 financial year. Our experience is not unique and is reflected in the wider real estate sector, which has faced the highest interest rates in 16 years and broader economic headwinds.

The Bank of England’s recent decision to reduce interest rates marks a change in direction, and from reviewing the underlying economic indicators and the need to drive economic growth, there is a case for rates to fall much further. This is likely to lead investors to return to property for higher yields, which, until very recently, have performed better.

 

The fundraising is showing signs of improvement, and we firmly believe that there is a need for a REIT focused on investing in social infrastructure and by leveraging Vengrove’s expertise, we are best placed to deliver.

 

We are continuing with our engagement of institutional investors focused on the infrastructure and real estate sectors and hope to provide updates soon.”

 

 

For further information, contact:

 

Walls & Futures REIT PLC                                                 0333 700 7171     

Joe McTaggart, Chief Executive

Website www.wallsandfutures.com

 

 

Allenby Capital Limited (Corporate Adviser)                               

Nick Harriss/James Reeve     020 3328 5656

 

 

 

Business review

 

2023-24 has continued to be a challenging period for the real estate sector, all facing economic headwinds and the highest interest rates in 16 years. Some sectors, such as offices and retail, have been more affected as they battle technology advancements, remote working and other structural changes, with falling occupancy rates leading to reduced income and asset values.

 

Our portfolio of residential lead assets offering essential support to the community has bucked this trend and performed robustly. Compared to the MSCI UK Residential Index (which runs to 31 Dec 23), it underperformed in terms of Total Return -2.52% vs the benchmark of 3.4%. However, it outperformed the index in terms of income return by 4.69%, compared to the benchmark of 3.18%.

 

Overall, we have collected 100% of our rents, which benefited from increases from our inflation-adjusted leases. There has been a modest increase of 2.4% in the value of our portfolio, and our Net Asset Value ("NAV") fell by 4.5% to 85p per share on 31 March 2024. The group has less than £15,000 outstanding on a Bounce Bank loan, so with no significant borrowing, it has been minimally affected directly by rising interest rates and the cost of serving debt.

 

Negative sentiment towards the narrow investment vertical of the Specialist Support Housing sector remains, and the share price of REITs in this sector have fallen and trade at discounts to their NAV.

 

This confirms our view that we need to build a broader portfolio of high-quality, income-producing real estate assets across social infrastructure assets that support the quality of life of regional and local communities.

 

Pax Homes update

 

Over the last year, Pax Homes (in which the Company holds an interest in preference shares) has been approved by NHS England for grant funding. They are supporting a number of local authorities in grant applications, which, if successful, will fund the build of new Pax Homes. Working in partnership with local authorities, care providers and a national housing association, pre-application submissions have been made for schemes in Derbyshire, Dorset and Leicestershire.

 

Further prospective sites have been identified in The Borders, Cambridgeshire, and Lancashire, and opportunities are being pursued in Hampshire, Hertfordshire, Suffolk, Peterborough, Norfolk, Oxfordshire, and Kent.

 

While Pax Homes has a growing order book, it has not generated any revenues. As such, we will continue to impair the value of the investment on our balance sheet. This will be evaluated annually.

 

Consolidated Statement of Comprehensive Income

 

 

 

 

For The Year Ended 31 March 2024

 

 

 

 

 

 

 

 

 

 

 

2024

 

2023

 

Notes

£

 

£

TURNOVER

5

              128,917

 

              115,398

Administrative expenses

 

              239,077

 

              239,033

 

 

           (110,160)

 

           (123,635)

Gain/loss on revaluation of tangible assets

 

                 60,000

 

           (250,000)

 

 

 

 

 

OPERATING LOSS

7

              (50,160)

 

           (373,635)

Interest receivable and similar income

 

                    8,652

 

                    1,749

 

 

 

 

 

 

 

              (41,508)

 

           (371,886)

Amounts written off investments

8

 -

 

                 99,999

 

 

 

 

 

 

 

              (41,508)

 

           (471,885)

Interest payable and similar expenses

9

                        409

 

                        558

 

 

 

 

 

LOSS BEFORE TAXATION

 

              (41,917)

 

           (472,443)

Tax on loss

10

                    2,163

 

                        332

 

 

 

 

 

LOSS FOR THE FINANCIAL YEAR

 

              (44,080)

 

           (472,775)

OTHER COMPREHENSIVE INCOME

 

 -

 

 -

 

 

 

 

 

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

 

              (44,080)

 

           (472,775)

 

 

 

 

 

Loss attributable to:

 

 

 

 

Owners of the parent

 

              (44,080)

 

           (472,775)

 

 

 

 

 

Total comprehensive income attributable to:

 

 

 

 

Owners of the parent

 

              (44,080)

 

           (472,775)

 

 

 

 

 

Earnings per share expressed in pence per share

12

 

 

 

Basic

 

                    (1.17)

 

                 (12.59)

Diluted

 

                    (1.17)

 

                 (12.59)

           

 

 

Consolidated Statement of Financial Position

 

 

 

 

 

 

31 March 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

2023

 

Notes

 

£

£

£

£

FIXED ASSETS

 

 

 

 

 

 

Intangible assets

13

 

 

 -

 

 -

Investments

14

 

 

                           1

 

                            1

Investment property

15

 

 

      2,560,000

 

       2,500,000

 

 

 

 

      2,560,001

 

    25,000,001

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

Debtors

16

 

          3,534

 

       13,493

 

Cash at bank

 

 

    691,367

 

    756,524

 

 

 

 

    694,901

 

    770,017

 

CREDITORS

 

 

 

 

 

 

Amounts falling due within one year

17

 

       67,556

 

       32,592

 

 

 

 

 

 

 

 

NET CURRENT ASSETS

 

 

 

           627,345

 

            737,425

 

 

 

 

 

 

 

TOTAL ASSETS LESS CURRENT LIABILITIES

 

 

 

      3,187,346

 

       3,237,426

 

 

 

 

 

 

 

CREDITORS

 

 

 

 

 

 

Amounts falling due after more than one year

18

 

 

                 7,000

 

               13,000

NET ASSETS

 

 

 

      3,180,346

 

       3,224,426

 

 

 

 

 

 

 

CAPITAL AND RESERVES

 

 

 

 

 

 

Called up share capital

22

 

 

           187,754

 

            187,754

Share premium

23

 

 

      3,505,154

 

       3,505,154

Fair value reserve

23

 

 

      1,226,019

 

       1,166,019

Retained earnings

23

 

 

    (1,738,581)

 

     (1,634,501)

 

 

 

 

 

 

 

SHAREHOLDERS' FUNDS

25

 

 

      3,180,346

 

       3,224,426

               

 

 

Consolidated Statement of Cashflows

 

 

 

 

 

For The Year Ended 31 March 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

2023

 

Notes

 

£

 

£

Cash flows from operating activities

 

 

 

 

 

Cash generated from operations

1

 

                                 (67,400)

 

           (64,682)

Interest paid

 

 

                                         (409)

 

                   (558)

 

 

 

 

 

 

Net cash from operating activities

 

 

                                 (67,809)

 

           (65,240)

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Development costs recognised in c/year

 

 

 -

 

        (123,234)

Interest received

 

 

                                       8,652

 

                 1,749

 

 

 

 

 

 

Net cash from investing activities

 

 

                                       8,652

 

        (121,485)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Loan repayments in year

 

 

                                    (6,000)

 

              (6,000)

 

 

 

 

 

 

Net cash from financing activities

 

 

                                    (6,000)

 

              (6,000)

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in cash and cash equivalents

 

 

                                 (65,157)

 

        (192,725)

Cash and cash equivalents at beginning of year

2

 

                                 756,524

 

           949,249

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of year

2

 

                                 691,367

 

           756,524

 


Attachment

File: Annual Report and Audited Accounts for the Year to 31 March 2024


Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse Regulation (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


ISIN: GB00BD04QG09
Category Code: FR
TIDM: WAFR
LEI Code: 213800CJV93R1FPNT553
OAM Categories: 1.1. Annual financial and audit reports
2.2. Inside information
Sequence No.: 345680
EQS News ID: 1984389

 
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