Home REIT serves notice to investment manager as it cuts costs in wind-down

Key facts

• Home REIT exercised the six-month notice under its investment management agreement on October 21, 2026.
• The company completed sales of its remaining 853 properties, generating gross proceeds of £138.8 million.
• Home REIT's annualised expenses, excluding legal fees, were £4.7 million based on the September 2026 run-rate.
• The Directors are targeting expenses, excluding legal fees, of between £2.0 million and £2.5 million per annum.

Home REIT has served formal notice to terminate its investment manager as part of a cost-cutting drive during its managed wind-down, the company said in a trading update on November 2, 2026.

The company exercised the six-month notice under its investment management agreement on October 21, 2026, and began the process of appointing a new AIFM. AEW have agreed to be retained on a consultancy basis after the expiration of the investment management agreement to deal with any remaining property and tenant matters that go beyond the term. All other major contracts are being reviewed as part of this process.

Home REIT has now completed the sales of its remaining 853 properties, generating gross proceeds of £138.8 million. Following completion of the final property sales, the company announced on September 15 that all of its subsidiaries have entered into creditors' voluntary liquidation. The Board considers this a necessary step to allow it to advance the planning for any subsequent return of capital to shareholders.

In the third quarter of the calendar year 2026, the company paid £0.8 million in general and administrative expenses, excluding legal fees, down from £1.5 million in the second calendar quarter. Following the completion of the sale of the property portfolio, the company's annualised expenses, excluding legal fees, based on the September 2026 run-rate were £4.7 million, a reduction of approximately £2.1 million from the level incurred in the year ended August 31, 2026.

The Directors are targeting to further reduce expenses, excluding legal fees, to between £2.0 million and £2.5 million per annum, once the service provider realignment has been completed. In the third quarter of the calendar year 2026, the company paid £0.5 million of legal costs, down from £1.2 million in the second calendar quarter 2026.