Walls & Futures REIT PLC: Results for the 6 months to 30 September 2024

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

 

31 December 2024

WALLS & FUTURES REIT PLC

 

 (“Walls & Futures” or the “Company”)

 

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.”

 

Joe McTaggart

Chief Executive

 

 

 

 

 

 

 

Consolidated Income Statement

For the Six-Month Period to 30 September 2024

 

	6 Months to 30 September 2024		6 Months to 30 September 2023		Year ended 31 March 2024
		£		£	£
Rent received	64,904		62,407		128,917
Cost of sales	-		-		-
Gross Profit	64,904		62,407		128,917
Increase in property values	40,000		60,000		60,000
Other Income	-		3,569		-
Administrative Expenses	(101,127)		(79,485)		(239,077)
Depreciation	-		-		-
	____________		____________		____________
OPERATING PROFIT/(LOSS)	3,777		46,491		(50,160)
Exceptional item	-		-		-
Interest receivable and similar income	4,961		-		8,652
Interest payable	(148)		(305)		(409)
	____________		____________		____________
PROFIT/(LOSS) BEFORE TAXATION	8,590		46,186		(41,917)
Taxation	-		678		2,163
Loss on disposal of fixed assets & depreciation	-		-		-
	____________		____________		____________
PROFIT/(LOSS) FOR THE FINANCIAL PERIOD	8,590		45,508		(44,080)
Other comprehensive income	-		-		-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	8,590		45,508		(44,080)

 

 

Consolidated Balance Sheet

30 September 2022

	30 September 2024			30 September 2023			31 March 2024
	£	£	£		£	£		£
FIXED ASSETS
Investment Property		2,600,000			2,560,000			2,560,000
Investments		1			1			1
CURRENT ASSETS
Cash at Bank	624,153		753,335			691,367
Debtors and Prepayments	6,581		5,642			3,534
CREDITORS
Amounts falling due within one year	(38,799)		(39,062)			(67,556)
NET CURRENT ASSETS		591,935			737,425			627,345
TOTAL ASSETS LESS CURRENT LIABILITIES		3,191,936			3,237,426			3,187,346
Provision for Liabilities		-			-			-
Amounts falling due over one year		(3,000)			(10,000)			(7,000)
NET ASSETS		3,188,936			3,269,936			3,180,346
CAPITAL AND RESERVES
Called up share capital		187,754			187,754			187,754
Share Premium		3,505,154			3,505,154			3,505,154
Fair Value Reserve		1,226,019			1,226,019			1,226,019
Retained Earnings		(1,769,991)			(1,648,992)			(1,738,581)
		3,188,936			3,269,936			3,180,346

 

Consolidated Cash Flows

For the Six-Month Period to 30 September 2024

	30 September 2024	30 September 2023	31 March 2024
	£	£	£
Cash flows from operating activities
Cash generated from operations	(69,027)	(3,516)	(67,400)
Interest paid	(148)	(224)	(409)
Tax paid	-	-	-
Net cash from operating activities	(69,175)	(3,740)	(67,809)
Cash flows from investing activities
Purchase of investment property	-	-	-
Sale of tangible fixed assets	-	-	-
Sale of fixed asset investments	-	-	-
Sale of investment property Development costs recognized in c/year	- -	- -	- -
Interest received	4,961	3,569	8,652
Net cash from investing activities	4,961	5,569	(6,000)
Cash flows from financing activities
New loans in year	-	-	-
Loan repayments in year	(3,000)	(3,000)	(6,000)
Share issue	-	-	-
Share buyback	-	-	-
Net cash from financing activities	(3,000)	(3,000)	(6,000)
Increase/(decrease) in cash and cash equivalents	(67,214)	(3,171)	(65,157)
Cash and cash equivalents at beginning of period	691,367	756,524	756,524
Cash and cash equivalents at end of period	624,153	753,353	691,367

 

 

The above figures have not been reviewed by the Company’s auditors.

 

The Directors of the issuer accept responsibility for the contents of this announcement.

 

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