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

End of Announcement	EQS News Service