DJ 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
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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 GBP128,917, up 11.7% (2023: GBP115,398)
-- Loss -GBP43,561 (2023: Loss of -GBP472,765)
-- 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 GBP15,000 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 GBP GBP
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 GBP GBP GBP GBP
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 17
year 67,556 32,592
NET CURRENT ASSETS 627,345 737,425
TOTAL ASSETS LESS CURRENT 3,187,346 3,237,426
LIABILITIES
CREDITORS
Amounts falling due after more 18 7,000 13,000
than one year
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 GBP GBP
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 1,749
8,652
Net cash from investing activities (121,485)
8,652
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 2 756,524 949,249
year
Cash and cash equivalents at end of year 2 691,367 756,524
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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.
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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
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