Home REIT PLC on Wednesday reported a decline in its portfolio valuation as the number of properties remained unchanged.

Home REIT, a London-based real estate firm, which invests in housing for homeless people, said its portfolio valuation stood at £412.9 million as at August 31, down 2.4% from £422.9 million at February 28, and 0.4% lower than £414.4 million a year prior.

The number of properties at the end of August was 2,473, unchanged from February, but up 10% from 2,239 a year ago.

The company said: ‘The majority of properties are now valued on a vacant possession basis and where a valuation has continued to be prepared on an investment basis, limitations on the duration of the income streams have been applied to account for the covenant strengths of the tenants, and the rent levels demanded under the leases.’

Home REIT added that the valuation was ‘impacted by a deterioration in the housing market and an increase in property yields more generally following a rise in interest rates.’

Further, the company said it exchanged on the sale of a further 80 properties or 3.6% of its portfolio, for £16.2 million. It expects completion in one month’s time. ‘The proceeds from the sale properties represented an average of 33% per cent of their purchase price,’ the company said.

Home REIT shares are currently suspended on Wednesday morning in London. They last closed at 38.05 pence each on January 3.

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