Home REIT PLC

Annual Report (ESEF) • Oct 30, 2025

213800A53AOVH3FCGG442023-09-012024-08-31iso4217:GBP213800A53AOVH3FCGG442022-09-012023-08-31iso4217:GBPxbrli:shares213800A53AOVH3FCGG442024-08-31213800A53AOVH3FCGG442023-08-31213800A53AOVH3FCGG442023-08-31ifrs-full:IssuedCapitalMember213800A53AOVH3FCGG442023-08-31ifrs-full:SharePremiumMember213800A53AOVH3FCGG442023-08-31homereitplc:SpecialDistributableReserveMember213800A53AOVH3FCGG442023-08-31ifrs-full:RetainedEarningsMember213800A53AOVH3FCGG442023-09-012024-08-31ifrs-full:IssuedCapitalMember213800A53AOVH3FCGG442023-09-012024-08-31ifrs-full:SharePremiumMember213800A53AOVH3FCGG442023-09-012024-08-31homereitplc:SpecialDistributableReserveMember213800A53AOVH3FCGG442023-09-012024-08-31ifrs-full:RetainedEarningsMember213800A53AOVH3FCGG442024-08-31ifrs-full:IssuedCapitalMember213800A53AOVH3FCGG442024-08-31ifrs-full:SharePremiumMember213800A53AOVH3FCGG442024-08-31homereitplc:SpecialDistributableReserveMember213800A53AOVH3FCGG442024-08-31ifrs-full:RetainedEarningsMember213800A53AOVH3FCGG442022-08-31ifrs-full:IssuedCapitalMember213800A53AOVH3FCGG442022-08-31ifrs-full:SharePremiumMember213800A53AOVH3FCGG442022-08-31homereitplc:SpecialDistributableReserveMember213800A53AOVH3FCGG442022-08-31ifrs-full:RetainedEarningsMember213800A53AOVH3FCGG442022-08-31213800A53AOVH3FCGG442022-09-012023-08-31ifrs-full:IssuedCapitalMember213800A53AOVH3FCGG442022-09-012023-08-31ifrs-full:SharePremiumMember213800A53AOVH3FCGG442022-09-012023-08-31homereitplc:SpecialDistributableReserveMember213800A53AOVH3FCGG442022-09-012023-08-31ifrs-full:RetainedEarningsMember Home REIT plc Annual Report — For the year ended 31 August 2024 Home REIT plc Annual Report — For the year ended 31 August 2024 Home REIT plc (“the Company”) and its subsidiaries (together the “Group”) The board of non-executive directors of the Company (ticker: HOME) (the“Board” or the “Directors”) reports its annual results for the year ended 31 August 2024 (“FY24”). The Company had the investment objective in the period of stabilising the Group’s financial condition through initiatives to maximise income and capital returns by investing in a portfolio of UK residential real estate (the “Amended Investment Policy”). On 16 September 2024, shareholders approved the New Investment Policy. Under the New Investment Policy the Company has the objective of realising all existing investments in the Group’s portfolio in an orderly manner, with a view to ultimately returning available cash to shareholders following the repayment of the Group’s borrowings. Full details of the New Investment Policy are on page 19. The Group, a real estate investment trust (“REIT”), is listed on the Official List of the Financial Conduct Authority and was admitted to trading on the premium segment of the main market of the London Stock Exchange on 12October 2020. As the Group did not publish its annual financial report for the year ended 31 August 2022 (“FY22”) within four months of the end of its financial year (as required by the Financial Conduct Authority’s Disclosure Guidance and Transparency Rule 4.1.3) the listing of the Company’s ordinary shares (each a “Share” and together, the “Shares”) was suspended on 3 January 2023. The FY22 accounts were published on 11October2024 and the accounts for the year ended 31 August 2023 (“FY23”) were published on 14 January 2025. The interim results for the periods to 29 February 2024 and 28 February 2025 are expected to be published during the 4th quarter 2025 and the annual report and accounts for the year ended 31 August 2025 as soon as practicable thereafter. Following publication of all outstanding financial information, the Company will then be able to apply to the FCA forarestoration of its listing and the recommencement of trading on the London Stock Exchange. As non-executive directors, the Board relies upon information reported to it by the alternative investment fund manager (“AIFM”) and other external parties, including information regarding the quality of the Group’s assets and tenants. The Directors have provided as much detail as they are able to within this Annual Report in order to provide a true and fair view of the Group’s consolidated financial statements (the “Consolidated Financial Statements”). The Company intends to bring legal proceedings against those parties whom it considers may be liable for the losses it has suffered, subject to a reasonable cost-benefit analysis. In May 2024, the Company issued a pre-action letter of claim to Alvarium Home REIT Advisors Limited (in liquidation) (“AHRA”), its former investment adviser. Shortly before issuance of the pre-action letter of claim, the Company was made aware that AHRA had appointed joint liquidators for the purpose of winding up the company. Notwithstanding this event, it remains important that all means of potential financial recovery are fully considered, and that any wrongdoing is thoroughly investigated, where it is cost-effective to do so. The Company also issued pre-action letters of claim to Alvarium Fund Managers (UK) Limited (in administration) (its former AIFM) (“Alvarium FM”) and AlTi RE Limited (in administration) (“AlTi RE”), AHRA’s former principal by virtue of an Appointed Representative Agreement in April 2024. However, since the issue of those letters, both Alvarium FM and AlTi RE have been placed into administration. As with the liquidation of AHRA, this potentially complicates the ability of the Company to achieve financial recovery from Alvarium FM and/or AlTi RE. The Company is also assessing the viability of seeking recoveries directly from AHRA, Alvarium FM and AlTi RE’s insurers. The Board cannot comment any further at this stage, as to do so may prejudice the Company’s position in any potential proceedings. Any relevant announcements in this regard will be made to the market at the appropriate time. Contents Overview 1 Introduction and highlights 2 Financial overview 3 Portfolio and operating overview Strategic report 6 Chair’s statement 10 Management report 16 ESG report 18 Key performance indicators 19 Strategic overview 23 Principal risks and uncertainties 29 Going concern and viability statement Governance 31 The Board 32 Directors’ report 37 Corporate governance statement 42 Report of the Audit Committee 48 Report of the Management Engagement Committee 49 Report of the Nomination Committee 52 Directors’ remuneration report 57 Statement of Directors’ responsibilities 58 Independent Auditor’s report Financial statements 72 Consolidated Statement of Comprehensive Income 73 Consolidated Statement of Financial Position 74 Consolidated Statement of Changes in Shareholders’ Equity 75 Consolidated Statement of Cash Flows 76 Notes to the Consolidated Financial Statements 99 Company Statement of Financial Position 100 Company Statement of Changes in Shareholders’ Equity 101 Notes to the Company Financial Statements Additional information 108 Appendix 1 – Key Regulatory News Service Announcements 1 September 2023 to 17 October 2025 112 Appendix 2 – Governance and Internal Control 115 Glossary 120 Company information Overview  HomeREITplc | AnnualReport | Fortheyearended31August2024     1 ThisAnnualReportcoverstheresultsfortheyear ended31August2024(“FY24”)andthebelowsetsout thebackgroundthatisrelevantforshareholdersto reviewsincetheyearended31August2023(“FY23”). TheseFY24AnnualReportandAccountshave beendelayedasaresultofthetimeandeffortin investigatingandresolvingtheissuesdiscussedinthe FY22andFY23AnnualReportsandAccounts.TheFY22 auditedaccountshadinitiallybeendelayed,following thepublicationofareportandallegationsfromthird parties,toallowtheGroup’sauditor,BDOLLP(“BDO”) toundertakeanenhancedsetofauditprocedures inrespectofFY22,andfortheBoardtoinstruct Alvarez&MarsalDisputesandInvestigations,LLP (“A&M”)toconductaninvestigationintoallegations ofwrongdoing.ThekeyfindingsoftheA&Mreport andchallengesraisedbyBDOcausedtheBoardto reviewtheaccountingtreatmentforacquisitions andrevenuerecognitionanddeterminethatrevised accountingpolicieswererequiredtoappropriately accountforthesubstanceofhistoricalacquisitions andleasecontracts. Inaddition,theBoardinstructedathirdpartyto undertakeaninternalinspectionprogrammeto determinetheconditionofthepropertiesand appointedJonesLangLaSalleLimited(“JLL”)to undertakevaluationsoftheentireportfolioon thebasisoffairvalueasat31August2022and subsequentperiods. ShortlybeforeFY24commenced,therewasachange totheinvestmentmanagementoftheGroup: • AHRAwastheappointedInvestmentAdviseruntil 30June2023andAlvariumFMwastheappointed AIFMuntil21August2023. • On22May2023theBoardappointedAEWUK InvestmentManagementLLP(“AEW”orthe “InvestmentManager”)toprovideproperty advisoryservicesandannounceditsintentto engageAEWasInvestmentManagerandAIFM afterreceiptofFCAandshareholderapprovalof theAmendedInvestmentPolicy.On21August2023 shareholdersapprovedtheAmendedInvestment PolicyandtheBoardappointedAEWasInvestment ManagerandAIFM. • AEWisnotresponsibleforthehistorical performanceoftheGrouppriorto21August2023. AEW’sroleasInvestmentManageristomanage theGroupinaccordancewiththeapplicable investmentpolicy. AsummaryofkeyeventsfromRegulatoryNews Services(“RNS”)announcementsisincludedin Appendix1.ThereisaGlossaryofDefinedTerms onpages115to119. Overview Introduction and Highlights 2     HomeREITplc | AnnualReport | Fortheyearended31August2024 • TheGroupcompletedonthesaleof1,098 investmentpropertiesfornetsalesproceedsof £140.6millionduringtheyear(2023:nil),decreasing theGroup’sportfoliofrom2,473to1,375properties. • Theportfoliowasindependentlyvaluedat £265.4millionasat31August2024(2023: £412.7million).Thepropertieshavebeenvalued onanindividualbasis.Noportfoliopremiumhas beenapplied. • Alikeforlikeincreaseinthefairvalueofproperties of£7.2million.Thevaluationrepresents44.7%of thehistoricalacquisitioncostsof£593.6million (includingpurchasecosts)(2023:decreaseof £71.4million,whichrepresents40.7%ofthe historicalacquisitioncostsof£1,014.3million). • 83.1%oftheportfolio(bynumberofproperties, 88.6%byvalue)(2023:88.3%bynumberof properties,88.3%byvalue)wasvaluedonavacant possessionbasis(“MV-VP”).JLLvaluesproperties onaMV-VPbasiswhenatenantisjudgedtobe inpoorfinancialconditionorworseorwhenthe propertyconditionisjudgedtobeverypoor orworse.Also,JLLvaluedallpropertiesunder thecontrolofpropertymanagersusingthe MV-VPbasis. • TheGrouprepaid£126.2millionofborrowings duringtheyear(includingcashpaymentsof £109.6millionandbreakgainsof£16.6million), reducingtotalborrowingto£93.8millionat 31August2024. • On19June2023ScottishWidowsimposed aDeferredFeeof0.5%oftheaggregate amountsoutstandingonthetwoloansateach of31August2023and30November2023, payableonthefullandfinalrepaymentofthe loans.On4December2023ScottishWidows imposedafurtherDeferredFeeeffectivefrom 30November2023beingtheequivalentof5.0%per annumontheaggregateamountsoutstandingon thetwoloansascomputedonadailybasis,payable attheearlierof28June2024orthefullandfinal repaymentoftheloans.On2July2024,Scottish WidowsincreasedtheDeferredFeefrom5%to7% witheffectfrom1July2024untilthefullrepayment oftheloan. • TheLoan-to-Valueratio(“LTV”)asat 31August2024was35.3%(2023:53.3%(excluding cashheldinescrowpendingdeliveryofsecurity acceptabletotheLender))comparedtothe Group’sborrowingpolicycapof35%andloan covenantsof50%.AsdiscussedinNote26tothe consolidatedfinancialstatements,theloansandall associatedfeesandexpenseshavebeenfullypaid after31August2024. • TheGroupheldunrestrictedcashbalancestotalling £6.2millionat31August2024(2023:£0.8million). • Lossbeforetaxfortheyearof£25.2million(2023: £118.2million). • NodividendswerepaidinrespectofFY24(FY23:nil). • An11.6%decreaseinnetassetvalue(“NAV”)per Shareto24.25penceasat31August2024(2023: 37.3%decreaseto27.43pence)resultingfromthe lossfortheyearof£25.2million. Overview Financial overview  HomeREITplc | AnnualReport | Fortheyearended31August2024     3 • TheGroupowned1,375propertiesasat 31August2024(31August2023:2,473properties), ofwhich682propertieswereleasedto20different registeredcharities,communityinterestcompanies andotherregulatedorganisations,689properties whicharemanagedbythirdpartyproperty managersandfourpropertieswhichwerebeing heldtobeincludedintheSeptember2024auction. • Duringtheyearended31August2024,theGroup agreedsurrenderdealswith29tenantscovering 1,839properties.On154ofthoseproperties,the primaryleasewasnovatedandtheGroupentered intoadirectleasewiththeundertenant.New leaseswereagreedonafurther34propertiesand apropertymanagerwasputintoplaceon640 propertieswhicharestillinplace.Fourproperties wereheldtobeincludedintheSeptember2024 auctionandtheremaining1,007propertieswere exchangedforsale. • Asat31August2024,theDirectorsconsider12of the20tenantstobeofweakcovenantstrength,with threetenantsinadministration(31August2023:28of the29tenantsareconsideredtobeofweakcovenant strength,withthreetenantsinadministration). • TheGroupcompletedonthesaleof1,098properties for£140.6millionfrom1September2023to 31August2024.Anadditional165properties totallinggrosssalespriceof£29.1millionhad exchangedbutnotcompletedasat31August2024. Propertiesexchangedarepresentedasinvestment propertyheldforsaleintheConsolidated StatementofFinancialPositionat31August2024 at£29.1million. • Theconditionofthepropertiesheldasat 31August2024arebasedonanoriginalassessment byVibrantEnergyMattersLtd(‘Vibrant”)orother sourcesaspartofalargerinspectionprogramme whichreportsweremadeavailabletoJLL.Ofthe 1,375propertiesheldat31August2024,84.3%were inspectedinternallyandthesehavebeenassessed as0.1%verygood,10.0%good,61.2%fair,10.5% poorand2.5%verypoor.Ofthosepropertiesnot inspected,43.5%havebeensoldsubsequentto 31August2024. • 3.1%ofpropertiesweredeemedunhabitableas at31August2024(31August2023:8.0%)which includesthepropertiesdeemedasverypoor followingcompletionoftheinspectionprogramme aswellaspropertiesdeemeduninhabitablebased oninformationprovidedbytenantsandproperty managers,andinspectionsundertakenbyAEW’s investmentandassetmanagementteams. • Ofthe£48.5milliontradedebtors(ofwhich £1.2millionwereduefromnon-tenantoccupants) outstandingasat31August2024,£47.9million wasfullyprovidedfor(2023:£50.8millionand £50.7millionrespectively). Director Changes On18January2024,theCompanyannounced theappointmentofMichaelO’Donnellasan independentnon-executivedirectorsucceeding LynneFennahasindependentnon-executivechair withimmediateeffect. On2April2024,theCompanyannouncedthe appointmentofPeterWilliamsasseniorindependent non-executivedirectorwithimmediateeffectand ManagementEngagementCommitteeChair. On7June2024,theCompanyannouncedthe appointmentofRodDayasanindependentnon- executivedirectorwithimmediateeffectandAudit CommitteeChairelect. Potential Litigation/FCA Investigation Apre-actionletterofclaimwassenttotheCompany byHarcusParkerLimited(“HarcusParker”)onbehalf ofcertainshareholdersoftheCompanyinOctober 2023.On5March2024,theCompanyannouncedthat itintendedtobringlegalproceedingsagainstthose partiesitconsidersareresponsibleforwrongdoing. ItremainstheCompany’sintentiontopursuethose whomitconsidersmaybeliableforthelossesithas suffered,subjecttoareasonablecost-benefitanalysis. On12April2024,theCompanyissuedpre-action lettersofclaimtoAlvariumFMandAlTiRE.On 29May2024,theCompanyissuedapre-actionletter ofclaimtoAHRA. On7February2024,theCompanywasnotifiedbythe FCAofitscommencementofaninvestigationintothe Companycoveringtheperiodfrom22September2020 to3January2023. Overview Portfolio and operating overview 4     HomeREITplc | AnnualReport | Fortheyearended31August2024 Debt On19June2023,ScottishWidowsimposedaDeferred Feeof0.5%oftheaggregateamountsoutstanding onthetwoloansateachof31August2023and 30November2023,payableonthefullandfinal repaymentoftheloan.On4December2023,Scottish WidowsimposedafurtherDeferredFeeeffective from30November2023beingtheequivalentof5.0% perannumontheaggregateamountsoutstandingon thetwoloansascomputedonadailybasis,payable attheearlierof28June2024orthefullandfinal repaymentoftheloans.On2July2024,theDeferred Feewasincreasedfrom5%to7%witheffectfrom 1July2024untilthefullrepaymentoftheloan.On 27November2024,theGroupmadeitsfinalpayment ontheloansoutstandingtoScottishWidowsandon 16December2024theGrouppaidtheoutstanding DeferredFeeof£9.0millionandScottishWidows releaseditschargesovertheGroup’sassets. Post year end highlights Disposals From1September2024to17October2025,theGroup exchangedonthesaleof522propertiesforgrosssales proceedsof£96.5million,allofwhichpropertieshave completed.Propertiesexchangedwerepresentedin theConsolidatedStatementofFinancialPositionat 31August2024at£99.4million. Restrictedcash Ofthecashretentionsheldbysolicitorsasat 31August2024,£169,000hasbeenreleasedtothe Groupand£341,000isstillheldwithsolicitors.The balancesunderthecontrolofthelenderhavebeen usedtorepaytheloansandassociatedfeesas describedmorefullyinNote6totheConsolidated FinancialStatements. Alternativeperformancemeasures TheGrouppresentedvariousEuropeanPublicReal EstateAssociation(“EPRA”)PerformanceMeasuresand otherKeyPerformanceIndicatorsintheManagement Reportfortheperiodended31August2021.Given thesignificantnumberandquantumofnon- recurringadjustmentsrecordedinthe2022and2023 financialstatements,theBoardconcludedthatsuch performancemeasurementswouldnotbenefitthe userofthosefinancialstatements.Nowthatthe GrouphasenteredtheManagedWind-Down,the Groupispresentingperformancemeasuresitdeems mostappropriatebeingtheexpenseratioduringthe reportingperiodandtheNAVpershareandLTVasat thebalancesheetdate(seepage18forfurtherdetail). TheDirectorsdonotbelievethatpresentinganyEPRA PerformanceMeasuresintheseReportandAccounts wouldbenefittheshareholdersandassuchhasnot providedthisinformation. Overview Portfolio and operating overview—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     5 Strategic report 6 Chair’sstatement 10 Managementreport 16 ESGreport 18 Keyperformanceindicators 19 Strategicoverview 23 Principalrisksanduncertainties 29 Goingconcernandviabilitystatement 6     HomeREITplc | AnnualReport | Fortheyearended31August2024 Dearshareholder, Aspreviouslyannounced,theGrouphasfaced unprecedentedchallengessincethepublicationofthe ViceroyResearchReportinNovember2022including: • theterminationofAHRAastheInvestmentAdviser andAlvariumFMastheAIFM; • investigationsbytheCompanyintoallegationsof wrongdoingbyAHRAandAlvariumFM; • substantialtenantarrears; • non-performingtenants,includingtenantsentering administrationandliquidation; • suspensionoftradinginitsshares; • apotentialgroupactionagainsttheCompanyand thedirectorsinofficeatthetimethattheshares weresuspended; • appointmentofanewvaluer; • acomprehensiveinspectionprogramme; • thecommencementofanFCAinvestigationinto theCompany; • ademandbytheGroup’sLender,ScottishWidows, fortherepaymentofitsloans;and • substantialdelaystothepublicationoftheGroup’s annualreportsforFY22,FY23andFY24andthe interimreportsforFY23,FY24andFY25. Financial Results Earnings/Loss ThelossbeforetaxoftheGroupfortheyear to31August2024was£25.2million(yearto 31August2023:lossof£118.2million). Thesignificantitemsdrivingthelossinclude: • realisedlossesonthedisposalofinvestment propertiesof£10.8million; • netrevenuesof£8.6million,beingrentalincomeof £41.4millionnetofanimpairmentofrentstraight- liningof£3.7millionandtheprovisionforexpected creditlossesof£29.1million; • operatingexpensesof£6.8millionrelated topropertiesthatareunderproperty managementcontracts; • generalandadministrativeexpensesof£19.8million ofwhich£7.1millionrelatedtolegalfees;and • financecostsof£3.9million;offsetby • anincreaseinfairvalueofinvestmentproperty of£7.2million; Netassetvalue TheNAVhasdecreasedfrom£216.9millionasat 31August2023to£191.7millionasat31August2024. TheNAVperSharehasdecreasedto24.25penceasat 31August2024,adecreaseof11.6%from27.43pence asat31August2023. Strategic report Chair’s statement  HomeREITplc | AnnualReport | Fortheyearended31August2024     7 Corporate Governance TheCompanyisanexternallymanagedREITandduring theperiodhadnoemployeesandonlynon-executive directors.Thenon-executiveBoardisresponsible forleadingandcontrollingtheGroupandhasoverall authorityforthemanagementandconductofthe Group’sbusiness,strategyanddevelopment.Inorder tofulfiltheseobligations,theBoardappointedAEWto actastheCompany’sinvestmentmanagerandAIFM. The Investment Manager Followingarigorousselectionprocess,theBoard appointedAEWasPropertyAdviseron22May2023 andasInvestmentManageron21August2023 followingshareholderapprovaloftheAmended InvestmentPolicy. Amended Investment Policy and Stabilisation period TheAmendedInvestmentPolicy,effectivefrom 21August2023,aimedtoensuretheGroupwasable tocontinuetooperateinthesectorandpreserveits longer-termsocialobjectiveofhelpingtoalleviate homelessnessintheUK.Theobjectivewastostabilise theGroup’sfinancialconditionthroughinitiativesto maximiseincomeandcapitalreturnsbyinvestingina portfolioofUKresidentialrealestateandfromother SocialUseoccupiergroups.On16September2024this policywassupersededasshareholdersapprovedthe NewInvestmentPolicyfortheManagedWind-Down oftheGroupwhichisdescribedmorefullybelow. UndertheNewInvestmentPolicytheCompanyhas theobjectiveofrealisingallexistinginvestmentsin theGroup’sportfolioinanorderlymanner,withaview toultimatelyreturningavailablecashtoshareholders, followingtherepaymentoftheGroup’sborrowings. FCA Investigation TheCompanyannouncedon13February2024the commencementofaninvestigationbytheFCAinto theCompany.TheCompany,theDirectorsandthe previousDirectorsinofficeatIPOarecooperatingfully withtheFCAinitswork. Potential Litigation InsimilarformattoFY22andFY23accounts,Ihaveset outbelowstatementsoffact,withoutwaiveroflegal privilege,andalthoughthisprovidesatrueandfairview ofthestateoftheCompanyandGroup,Iamunableto elaboratewithfurtherdetailsastodosomayprejudice theCompany’spositioninanypotentialproceedings. Legalprivilegeincludesconfidentialdocumentsand communicationsbetweenlawyers,clients,and/orthird parties,whichcomeintoexistenceforthedominant purposeofbeingusedinconnectionwithactualor pendinglitigationorforthedominantpurposeof seekinglegaladvice.Legalprivilegecreatesanabsolute righttoprotectandwithholdinspectionofsuch documentsandcommunications. Apre-actionletterwassenttotheCompanyby HarcusParkeronbehalfofcertaincurrentandpast shareholdersoftheCompanyinOctober2023.No legalproceedingshavebeenissuedatthisstage.The letterallegedthattheCompany,alongwithcertain otherparties,providedinformationtoinvestorswhich wasfalse,untrueand/ormisleading.TheCompanyhas issuedacomprehensiveresponsetoHarcusParkerand correspondenceiscontinuingbetweentheparties. TheCompanyintendsvigorouslytodefenditselfin respectofthethreatenedlitigationandhasdeniedthe allegationsmadeagainstit. TheCompanyintends,subjecttoareasonablecost- benefitanalysis,tobringlegalproceedingsagainst thosepartieswhomitconsidersmaybeliablefor thelossesithassuffered.Tothatend,theCompany issuedpre-actionlettersofclaimtoAlvariumFM,AlTi REandAHRA. Shortlybeforeissuanceofthepre-actionletterof claim,theCompanywasmadeawarethatAHRAhad appointedjointliquidatorsforthepurposeofwinding upthecompany.Notwithstandingthisevent,it remainsimportantthatallmeansofpotentialfinancial recoveryarefullyconsideredandthatanywrongdoing isthoroughlyinvestigated,whereitisfinanciallyviable todoso.TheCompanyalsoissuedpre-actionletters ofclaimtoAlvariumFM(itsformerAIFM)andAlTiRE inApril2024.However,sincetheissueofthoseletters, bothAlvariumFMandAlTiREhavebeenplacedinto administration.AswiththeliquidationofAHRA,this potentiallycomplicatestheabilityoftheCompanyto achievefinancialrecoveryfromAlvariumFMand/or AlTiRE.TheCompanyisalsoassessingtheviabilityof seekingrecoveriesdirectlyfromAHRA,AlvariumFM andAlTiRE’sinsurers.TheCompanycannotcomment anyfurtheratthisstage,astodosomayprejudicethe Company’spositioninanypotentialproceedings. Directors IwasappointedtotheBoardon18January2024to succeedLynneFennahasIndependentNon-Executive Chair.PeterWilliamswasappointedon2April2024as SeniorIndependentNon-ExecutiveDirectorandRod DaywasappointedasIndependentNon-Executive Directoron7June2024. On14January2025,followingthepublicationof theFY23accounts,theCompanyannouncedLynne Fennah,MarleneWood,PeterCardwellandSimon MoorehadstooddownasDirectorswithimmediate effectwithRodDaysucceedingMarleneWoodas AuditCommitteeChair.Theywillcontinuetoassist theCompany,whennecessary,onhistoriclegaland regulatorymattersandLynneFennahisemployedby theCompanyonapart‐timebasistoprovideadditional supportinrelationtothesematters. Strategic report Chair’s statement—continued 8     HomeREITplc | AnnualReport | Fortheyearended31August2024 SignificantMattersImpactingAnnualResultsand Post Balance Sheet Activities Thefollowingisahigh-levelsummaryofsignificant matterswithinthefinancialyearandpostbalance sheeteventswithfurtherdetailprovidedinthe ManagementReport. Portfolio Valuation JLLhasindependentlyvaluedtheGroup’sportfolio inaccordancewiththeRICSValuation–Professional Standards.Asat31August2024,theGroup’sportfolio hadamarketvalueof£265.4million(2023:£412.7 million)representing44.7%ofthehistoricalacquisition costsof£593.6million(includingpurchasecosts).The reductioninthepropertyvaluationisaresultofthesale of1,098propertiesduringtheyear.Theassessment ofthecovenantstrengthoftenantsandthecondition ofthepropertiesasat31August2024resultedin 83.1%(2023:88.3%)(bynumberofproperties,88.7% (2023:88.3%)byvalue)oftheportfoliobeingvalued onavacantpossessionbasisforthe31August2024 valuation.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highrentlevelsdemandedundertheleases. SeefurtherdetailinNote9totheConsolidated FinancialStatements. Dividends On16February2023,theBoardannouncedthat exceptforanydistributionsthatwouldberequired tomaintainREITstatus,thatithasceasedpayingany furtherdividendsuntilfurthernotice.Therewereno dividendsdeclaredinrespectofthefinancialyearend 31August2024. Financing TheGrouphadtwoloanswithScottishWidowsbeing a12-yearloanagreementfor£120millionatanall-in rateof2.07%perannumforthedurationoftheloan term,dueforrepaymentinDecember2032anda 15-year,interestonly,£130millionloanagreement atanall-infixedrateof2.53%perannum,expiring inDecember2036.Thelatterloanwasfullydrawn downon28February2022,butfullusewassubjectto meetingconditionsonassigningcollateral.Thefacility arrangementswereintendedtoprovideprotection againsttheprevailingenvironmentofincreasing interestrates,giventhelong-termfixedrates ofinterest. AfterreportingloancovenantbreachesinJanuary 2023,theLenderextendedtheinitialwaiverletterdated 29January2023andhasissuednewwaiverlettersprior totheexpiryofeachpreviouswaiverperiod.Thewaiver lettersrelatedtomattersincludingfinancialcovenants, anadversechangeinthepositionoftheCompanyand itssubsidiaries,afailuretodeliverauditedaccountsand otherinformation,thesuspensionofthesharesofthe CompanyontheLondonStockExchangeandthetax statusoftheCompany. CertainfinancialpenaltieswereimposedbytheLender inrespectoftheloanfacilitiestoincentiviserepayment oftheloansassoonaspossible.TheGroupincurredthe followingDeferredFeestotalling£9.0million: • 0.5%oftheaggregateamountsoutstanding onthetwoloansateachof31August2023and 30November2023;and • 5.0%perannumontheaggregateamounts outstandingonthetwoloansascomputedonadaily basisfrom30November2023andincreasedto7% from1July2024untiltheloanswerefullyrepaid. DuringFY24andFY23theGrouprepaid£126.2million (comprisingofprincipalpaymentsof£109.5million andNetBreakGainsof£16.7million)and£30.0 millionrespectivelyofborrowings,reducingthe outstandingbalanceat31August2024to£93.8million. On27November2024,theGroupmadeitsfinal paymentontheloansandon16December2024paid theDeferredFees. Post-balance sheet matters ThepostbalancesheeteventsaredetailedinNote 26totheConsolidatedFinancialStatementsand furtherdetailprovidedintheManagementReport frompage14. Managed Wind-Down and New Investment Policy On5February2024,theGroupannouncedthatit hadcommencedare-financingprocesstoconsider alternativefinanceoptionsfortheCompany.On 17June2024,theCompanyannouncedthatithad beenunabletosecureare-financingofitsexisting debtfacilityontermsthatitcouldrecommend toshareholders,despiteextensiveandadvanced discussionswithapotentiallender.There-financing ofthedebtwasakeycomponentofthecontinued advancementofthestabilisationstrategydiscussed aboveandasadoptedinAugust2023.Asthere- financinghadnotbeenpossible,theCompanyalso announcedthatitwasconsideringanumberofoptions bothtore-paytheoutstandingdebtandprovidean optimisedresolutionforshareholders,whichcould includeamoreextensiverealisationstrategy.The BoardandAEWcontinuedtoengagewithScottish Widowswhichadvisedthatitsobjectiveisfor repaymentoftheloanbalanceintheshorttermand nolaterthan31December2024. Subsequenttoconcludingthatthere-financingwas nolongerviable,theBoardconductedafullreviewof thestabilisationstrategyandwhilstitrecognisedthat thereisanopportunitytoaddvaluetotheportfolioat Strategic report Chair’s statement—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     9 Strategic report Chair’s statement—continued apropertylevel,itconcludedthatthisstrategyfaced considerablechallenges.Theseincludedahighfixed corporatecostbase,requiredduetotheREITstructure andasaresultoftheissuesbeingdealtwithbythe Company,aswellasthecapitalexpenditurerequired todriveanincreaseinrentalvalue.Inaddition,the Boardwasawarethatthesizeofthevehiclefollowing therepaymentofdebtwouldbeconsideredtoosmall bymanyinvestorswhenconsideringitsfutureasa listedREIT. Asaresultofthesefactorsandhavingcarefully consideredtherangeofoptionsavailableforthe Company,theBoardconcludedthatitwasinthebest interestsofshareholderstoproposeamanagedwind- downstrategyfortheCompanypursuanttowhichthe assetsoftheGroupwouldbesoldwiththeobjectiveof optimisingremainingshareholdervalueandrepaying theGroup’sloanbalance(the“ManagedWind-Down”). TheimplementationoftheproposedManagedWind- DownrequiredafurtherchangetotheCompany’s investmentpolicy.Accordingly,on16September2024, shareholdersapprovedtheNewInvestmentPolicy, whichisintendedtoallowtheCompanytorealiseall theassetsinitspropertyportfolioinanorderlymanner withtheviewtorepayingborrowingsandmakingtimely returnsofcapitaltoshareholderswhilstaimingto optimisethevalueoftheGroup’sassets. FulldetailsoftheNewInvestmentPolicyareon pages19and20. Outlook and Approach to the Managed Wind-Down Afteranextensivemarketingcampaigncommenced inQ42024,asignificantnumberofpartiesshowed interestintheremainingpropertyportfolio.Non- bindingofferswerereceivedforthefullportfolioin February2025andduediligenceisprogressing.The Companyanticipatesthattheportfoliosaleprocess willconcludeinthefourthquarterof2025.However, thereisnoassurancethattheportfoliosalewill progressunderthecurrentexpectedtimelineor withtermswhichareacceptabletotheBoard.AEW continuestoundertakeassetmanagementinitiatives focusedonaddingvaluetotheportfolioandpreparing themforsale. Return of capital to shareholders ItistheintentionoftheBoardfollowingtherepayment oftheGroup’soutstandingdebtfacilitiesthatcapital willbereturnedtoshareholdersuponthecompletion oftherealisationstrategy.However,shareholders shouldbeawarethattheabilityoftheCompanyto makedistributionstoshareholderswillbeconstrained whilsttheCompanyfacespotentialgrouplitigation. Atpresent,theBoardisunabletoassessproperlyits abilitytomakedistributionswiththethreatoflitigation. Inaddition,theCompanyexpectstoretaincapitalto meetcorporatecostsandallowittopursuelegalaction againstthoseitconsidersresponsibleforwrongdoing. Themostappropriatetimingandmechanismto returncapitaltoshareholderswillbedeterminedin duecourse,however,theBoardistakingstepsnowto ensurecapitalcanbereturnedassoonaspossible. Followingshareholderapprovaltocancelthe Company’ssharepremiumaccountpassedon 20February2025,thecancellationoftheshare premiumaccountwasapprovedbytheCourton 29April2025andbecameeffectivewiththeregistration oftheCourtorderatCompaniesHouseon2May2025. Thepurposeofthecancellationofthesharepremium accountistocreateanewspecialdistributable reserveofapproximately£596millionwhichcanbe utilisedbytheCompanytomakereturnsofcapitalto shareholders,whenitisapositiontodoso. Financial statements and restoration of listing Theinterimresultsfortheperiodsto29February2024 and28February2025areexpectedtobepublished duringthe4thquarter2025andtheannualreportand accountsfortheyearended31August2025assoon aspracticablethereafter.Followingpublicationofall outstandingfinancialinformation,theCompanywill thenbeabletoapplytotheFCAforarestorationof itslistingandtherecommencementoftradingonthe LondonStockExchange. Furtherdetailsregardingtheexpectedtimetable forrestorationoflistingwillbeannouncedupon publicationoftheabovefinancialinformation.The Companyexpectstoengagewithshareholdersahead ofthisimportantevent. TheBoardsharesshareholders’frustrationsonthe progressoftheCompanyanddespitesubstantial effortstostabilisethebusiness,theCompany continuestofaceextensivefinancialandoperational challenges.Againstthisbackdropandinlightofthe expectedreducedsizeoftheCompany’sportfolio, theBoardconcludedthatthebestcourseofactionto optimiseremainingshareholdervaluewastheManaged Wind-Down.Iwouldagainliketothankshareholders fortheirongoingpatienceandsupportaswestrive toaddress,andseekredressfor,theissuesfacing theCompany. Michael O’Donnell Chair 17October2025 10     HomeREITplc | AnnualReport | Fortheyearended31August2024 Strategic report Management report Introduction On23May2023theBoardappointedAEWtoprovide propertyadvisoryservicesandannounceditsintent toengageAEWasInvestmentManagerandAIFM afterreceiptofFCAandshareholderapprovalof theAmendedInvestmentPolicy.On21August2023 shareholdersapprovedtheAmendedInvestment PolicyandtheBoardappointedAEWasInvestment ManagerandAIFM. AEWisnotresponsibleforthehistoricaleventsand performanceoftheGrouppriortoitsappointment. AEW’sroleasInvestmentManageristomanagethe Groupinaccordancewiththetermsofitsappointment andtheapplicableinvestmentpolicy,initially beingtheAmendedInvestmentPolicy(andfrom 16September2024,theNewInvestmentPolicy). Amended Investment Policy TheAmendedInvestmentPolicy,whichwasinplace duringtheentirefinancialyear,aimedtoensurethe Companywasabletocontinuetooperateinthesector andpreserveitslonger-termsocialobjectiveofhelping toalleviatehomelessness.Keycomponentsinclude: • aStabilisationPeriodwasintroduced,duringwhich time,theCompanywouldhavetheobjectiveof stabilisingtheGroup’sfinancialconditionthrough initiativestomaximiseincomeandcapitalreturns. TheStabilisationPeriodwasforaperiodof2years from22August2023orsuchlaterdate(notbeing laterthanoneyear)approvedbytheBoard. • thepermittedusesofpropertieswerediversified toincludeduringtheStabilisationPeriodany formofresidentialuse.Poststabilisationthe Companywouldtargetpredominantlyhomeless accommodationassetsandassetswithanySocial Use;and • anewleasingmodelwasadoptedwhichwasbetter alignedtotheneedsofLocalAuthorities,Charities, RegisteredProvidersandHousingAssociations andtheneedsoftheunderlyingoccupantsof theproperties. Investment Manager activity AEWhasundertakenthefollowingactivitysince it’sappointment: Property disposals SinceAugust2023theGrouphasundertakena seriesofauctionsalesinordertorepaybankdebt andprovideworkingcapital.Asatthedateofthese accounts,1,620propertieshavebeensoldatauction fortotalgrossproceedsof£244.1millionofwhichall propertieshavecompleted.Theproceedsfromthe saleofthesepropertiesrepresentanaverageof38.4% oftheirpurchasepriceand98.2%oftheirAugust 2023valuation. Asset management initiatives Sincethebeginningofthecurrentfinancialyear,AEW haveundertakenthefollowingsignificantinitiatives: • AEWcompletedtheinspectionprogrammestarted inthepreviousfinancialyear,whichinvolved internallyinspecting2,033propertiesfromAugust 2023toMay2024,representing82.2%ofall propertiesownedat31August2023; • WorkedwithJLLtofinalisetheirinspection programmeandtheinformationsupportingtheir worktoreleasetheirvaluationasat31August2023 and2022and28February2023; • Usingtheinspectiondataandotherinformation gatheredfromexternalsources,AEWcompiled aninformationdatabaseonallpropertieswhich wasusedtodeterminepropertysuitability,capital expenditurestomakethepropertyfitforpurpose, andincomeandreturnprospectsinordertoguide asell/holdanalysis; • Afterformingaviewofthefinancialstabilityof everytenant,AEWengagedintenant-by-tenant negotiationstounlockaccesstoandinformationon theunderlyingproperties.Usingthisinformation AEWprogressednegotiationsto: – surrenderleasesfromnon-performingtenants; – removetheprimarytenantanddirectlyengage withthesub-tenant;or – supportperformingtenants,whereappropriate; • Forhabitablepropertieswithnon-performing tenants,identifyanewtenantorpropertymanager totakeoveroperationoftheproperty;  HomeREITplc | AnnualReport | Fortheyearended31August2024     11 Strategic report Management report—continued • Forpropertiesassociatedwithexistingornew performingtenantsandpropertymanagers: – Obtainrequiredinformationsuchasgasand electriclicensing, – DriveHMOcompliancewithregulationsin ordertoensurecontinuedsafeoperationofthe propertyforoccupants; – Obtainanunderstandingofoverallhealth& safetycomplianceandsummarisetheresultsfor discussionwiththeBoard;and – Establishnewfinancialandoperational reportingstructuresincludingrentdemands andcollections,expensepayments,required repairsandmaintenance,updatedhealth& safetyinformation,occupancydetailsandoverall monthlyresults; • From1September2023to17October2025, completedthesaleof1,620propertiesfor £244.1million,whichisinlinewiththeAugust 2023valuation; • Theaboveinitiativesresultedinaportfolioof 2,473propertiesletto29tenantsofwhich28 (representing99.8%ofannualcontractedrent) weredeemednon-performingbecomingaportfolio of1,375propertiescomprisedof682tenanted properties,689propertiesunderthecontrolof propertymanagersandfourwerecontrolledby AEWforinclusionintheSeptemberauctionallas at31August2024. • Expandedshareholdercommunications,holding periodicwebinarsandupdatecallstosignificantly expandinformationsharedwithshareholders; • WorkedtoissuetheAugust2022and2023 AnnualReportandAccounts;the2023Interim Accounts,andthese2024AnnualReport andAccounts. Investment Properties Propertyvaluation TheGroup’sportfoliohasbeenindependently valuedbyJLLinaccordancewiththeRICSValuation ProfessionalStandards.Asat31August2024,the Group’sportfoliohadamarketvalueof£265.4million (2023:£412.7million)representing44.7%ofthe historicalacquisitioncostsof£593.6millionincluding purchasecosts(2023:40.7%and£1,014.3million respectively).Thereductioninthepropertyvaluationis principallytheresultofthesalesof1,098propertiesin theyearto31August2024. Indeterminingthefairvalueasat31August2024,JLL hasusedacombinationofvaluationbases,adoptingan investmentvaluationfor11.4%oftheportfolioandMV- VPvaluefor88.6%oftheportfolio(2023:Investment value11.7%andMV-VP88.3%).Inallcases,JLLhas consideredtherentalvaluefortheexistingusesofthe propertiesandLocalHousingAllowance(“LHA”)rates. Thesecurityoftheunexpiredtermfortheseleases differsacrosstheportfoliodependingonthecovenant strengthofthetenant.Fortenantswithaweak covenantstrengthorwhereapropertywasdeemed unhabitableJLLdisregardedtheleasesandvaluedthe propertiesonthebasisofMV-VP.Allpropertiesunder thecontrolofpropertymanagershavebeenvaluedon thebasisofMV-VP. Whereavaluationhasbeenpreparedonaninvestment basis,limitationsonthedurationoftheincome streamshavebeenappliedtoaccountforthecovenant strengthofthetenants,andtheabove-marketrent levelsdemandedunderthein-placeleases.JLLcapped theunexpiredleasetermat5yearsduetothelackof confidenceinthosetenantsbeingabletofulfiltheir leaseobligations.Furthermore,forthoseproperties whichwereletorsublettoatenantwithastrong covenant(inthecaseofasublease,JLLdisregarded theprimaryin-placelease),JLLcapitalisedthelease/ subleasepassingrentforitsremainingtermofupto eightyears. 12     HomeREITplc | AnnualReport | Fortheyearended31August2024 Strategic report Management report—continued Thebelowtableshowsthebreakdownofpropertiesandvaluebyvaluationapproach. 31August2024 31August2023 Asat Number ofproperties FairValue £millions Number ofproperties FairValue £millions Investmentvaluationapproach 232 30.2 289 48.1 Marketvalue–vacant possessionapproach 1,143 235.2 2,184 364.6 Total 1,375 265.4 2,473 412.7 Asat31August2024,44propertiesofthe1,375were consideredunhabitable(2023:198of2,473properties). Theannualcontractedrentandfairvalueinrespectof thesepropertiesasat31August2024was£0.6million and£9.4millionrespectively(2023:£4.9million and£27.1millionrespectively).Subsequentto 31August2024,26ofthepropertieswhichwere consideredunhabitablehavebeensoldallofwhich havecompleted. Tenants Tenantcovenantstrengthandliquidations Asat31August2024,682oftheGroup’s1,375 propertieswerelettoregisteredcharities,housing associationsandcommunityinterestcompanies (2023:2,358of2,473properties).InlinewiththeOriginal InvestmentPolicy,theGrouphadintendedtoacquire assetsletorpre-lettoawiderangeoftenantswith robustfinancialsandaprovenlong-termoperating trackrecordacrossadiverserangeofhomeless sub-sectorsandlocations.Theheadroombetween coreleaserentpayableontheGroup’spropertiesand housingbenefitwasintendedtocoverthetenant’s managementchargeandthecostofintensivehousing management/buildingsupkeepassociatedwiththe provisionofaccommodationtohomelesspeople. AEWhasdeterminedthatthemajorityoftenantswere poorlycapitalisedandlackedlong-termoperatingtrack recordsandthebenefitoflocalauthoritysupport.In someinstances,forexamplesinglefamilyhomes,the rentburdenundertheoriginalleasewasunsustainable basedonthelocation,lay-out,useandconditionof theproperty. AEWandtheBoardhavedeterminedthatas at31August2024,12of20tenants(2023:28of the29tenants)wereofweakcovenantstrength representing67.6%ofpropertiesand76.1%of annualcontractedrent(2023:99.8%and99.8% respectively).Threetenantswereinadministrationas at31August2024(2023:threetenants),andafurther threetenants(2023:ninetenants)haveenteredinto voluntaryadministrationpostperiodend,representing 4.1%ofpropertiesand13.8%ofannualcontractedrent asat31August2024(2023:63.1%ofpropertiesand 68.1%ofannualcontractedrent). Anumberoftenantshavesurrenderedleasesor enteredintocreditorsvoluntaryliquidationor administration.Ofleasesassociatedwiththetenants inplaceforthe1,375propertiesownedbytheGroup on31August2024,238leasesweresurrenderedby theprimarytenantandHomeREITnowhasadirect leasewiththeunder-tenant,39arestillinplace, 481propertieshavebeenturnedovertoaproperty managerandtheGrouphasdirectarrangementswith theoccupantsorthepropertiesarebeingheldvacant, 95arere-tenanted,and522havebeensold. Rentcollection Rentcollectedduringtheyeartotalled£6.3million.Of theamountdemandedunderleasestonon-occupant tenantsof£35.1million,£4.1millionwascollected.An additional£2.2millionwascollectedfromproperties managedunderpropertymanagementagreements. Arrearsat31August2024were£52.2million,ofwhich £48.4millionwasfullyprovidedfor(2023:£50.8million and£50.7millionrespectively).TheGrouprecognised anadditionalprovisionforexpectedcreditlossesof £29.1millionin2024(2023:£49.5million)andwroteoff £30.7millionoftenantreceivablesin2024(2023:nil). Amountscollectedaftertheperiodendforrent dueunderoperatingleasesincludingarrearswas £4.8millionfrom1September2024to31August2025 comparedtorentdemandedof£8.5million.  HomeREITplc | AnnualReport | Fortheyearended31August2024     13 Strategic report Management report—continued OccupancyandSocialUse Theinspectionprogrammewhichwasinitiatedin August2023providesareferencepointastoproperty occupancyasatthedateofinspection,however, theinspectionsdidnotdifferentiatebetweenone bedroombeingoccupiedcomparedtoawholebuilding beingoccupied. AEWhasundertakenacomprehensivereviewand datacollectionexerciseofthepropertyportfolio. Analysisoftheunderlyingpropertyconditionanduse wasparamountaspartofanexercisetodetermine suitability,capitalexpenditurerequirements,andthe prospectsforincomeandcapitalreturnsprospects asAEWworkstorationalisetheportfolioduringthe ManagedWind-Down. AEWcontinuestoobtainreliabledatafromtenants thatthemajorityoftheoccupantsintheportfolio hasbeenidentifiedasPRSratherthanhomeless accommodationbackedbyexemptrentsfromlocal authorities.PRSoccupiers,however,couldbeatriskof homelessnessandmeetthecriteriaofbroaderSocial Use,asdefinedintheAmendedInvestmentPolicy, basedonthelocationofthepropertiesandthetypeof accommodationtheyprovide. Debt Finance and Repayment On19June2023ScottishWidowsimposedaDeferred Feeof0.5%oftheaggregateamountsoutstanding onthetwoloansateachof31August2023and 30November2023,payableonthefullandfinal repaymentoftheloan.On4December2023Scottish WidowsimposedafurtherDeferredFeeeffective from30November2023beingtheequivalentof5.0% perannumontheaggregateamountsoutstandingon thetwoloansascomputedonadailybasis,payable attheearlierof28June2024orthefullandfinal repaymentoftheloans.On2July2024,theDeferred Feewasincreasedfrom5%to7%witheffectfrom 1July2024untilthefullrepaymentoftheloan.On 27November2024,theGroupmadeitsfinalpayment ontheloansoutstandingtoScottishWidowsandon 16December2024theGrouppaidtheoutstanding DeferredFeeof£9.0million. General and administrative expenses TheGrouphasincurredsignificantexpensesintheyear to31August2024.Thebroadcategoriesofexpenses areasfollows: Fortheyear ended31August 2024 £’000 Fortheyear ended31August 2023 £’000 Legalfees 7,106 3,502 AEWpropertyand investmentmanagement fees(Note19) 5,000 1,085 Professionalfees 4,608 3,395 FeespaidtotheGroup’s IndependentAuditor 846 1,076 Valuationfees 300 2,165 Directors’fee(Note19) 362 176 Alvariuminvestment advisoryfees(Note19) – 5,094 Tenantandaggregator settlements – 1,419 Otheradministrative expenses 1,563 1,247 Total 19,785 19,159 • Legalfeesincurredrelatedtothefollowing workstreams:1-activitiessupportingtheresponse toallegationsmadeinNovember2022andthe associatedcorporateactionsof£0.9million(2023: £1.0million),2-theinvestigationofwrongdoing, thepreparationofdefensiveactiononbehalfofthe CompanyandthepursuitofthosetheCompany considersresponsibleforthewrongdoingof £3.2million(2023:£1.2million),3-tenantrelated mattersof£1.8million(2023:nil),4-bankloan relatedsupportforboththeborrowerandthe lenderof£0.7million(2023:£0.2million),5-forensic supportforalllegaladvisersof£0.3million (2023:£0.9million),and6-othermiscellaneous workstreams£0.2million(2023:£0.2million). • Professionalfeesincludecostsassociatedwith financialadvisorsandboardrecruitmentaswellas accounting,PRandtaxsupport. • AEWandAHRAfeesarediscussedmorefullyinNote 19totheConsolidatedFinancialStatements. • Valuationfeesin2023includeamountspaidtoJLL forinspectionandvaluationservicesaswellas costrelatedtoVibrantandotherthirdpartieswho performedpropertyinspectionstosupportthe valuationprocess,whichdidnotrecurinFY24. 14     HomeREITplc | AnnualReport | Fortheyearended31August2024 Strategic report Management report—continued Property operating expenses Operatingexpensesrelatingtopropertiesunder managementagreementsareasfollows: Fortheyear ended31August 2024 £’000 Fortheyear ended31August 2023 £’000 Maintenanceandcompliance 2,301 550 Managementfees 1,342 – Utilities 788 – Counciltax 562 4 Otherfees 166 – Subtotal 5,159 554 Irrecoverable propertyinsurance 624 – Propertyconsultancyfees 568 200 Otherpropertyexpenses 435 – Total 6,786 754 TheGroupbeganincurringpropertyoperating expensesdirectlyasAEWnegotiatedsurrenders withtenantsandinsertedpropertymanagersto manageeachpropertyuntilstabilisedorsold.This directarrangementwiththeoccupantplacesthe responsibilityforsettlingexpensesassociatedwith eachpropertywiththeGroup(ifnotdirectlywith thetenantforsuchcostsasutilitiesandcouncil taxes).TheGroupincurredsignificantmaintenance andcompliancecostsasittookbackpropertiesto ensurethatpropertiesweresuitableforoccupation. Propertieswereevaluatedforsaleorimprovement atthesurrenderdateandifAEWconsidered improvementstoensurethepropertywassuitable foroccupationweretoosignificant,thepropertywas auctionedtogenerateproceedstoreducethird-party loans.Inadditiontostandardmanagementfees,the Groupalsoincurredon-boardingandvacancyfees, andimprovementsoversightexpensesfromproperty managers.Propertyconsultancyfeesareassociated withathirdpartyengagedbyAHRA,whoassistedwith thetransitiontoAEWin2023andwhosecontractwas terminatedwitheffectfrom31October2023. Post period end activity NewInvestmentPolicy–ManagedWind-Down On5February2024,theGroupannouncedthatit hadcommencedare-financingprocesstoconsider alternativefinanceoptionsfortheCompany.On 17June2024,theCompanyannouncedthatithad beenunabletosecureare-financingofitsexisting debtfacilityontermsthatitcouldrecommend toshareholders,despiteextensiveandadvanced discussionswithapotentiallender.There-financing ofthedebtwasakeycomponentofthecontinued advancementofthestabilisationstrategydiscussed aboveandasadoptedinAugust2023.Asthere- financinghadnotbeenpossible,theCompanyalso announcedthatitwasconsideringanumberofoptions bothtorepaytheoutstandingdebtandprovidean optimisedresolutionforshareholders,whichmay includeamoreextensiverealisationstrategy.The BoardandAEWcontinuedtoengagewithScottish Widowswhichadvisedthatitsobjectivewasfor repaymentoftheloanbalanceintheshorttermandno laterthan31December2024. Subsequenttoconcludingthatthere-financingwas nolongerviable,theBoardconductedafullreviewof thestabilisationstrategyandwhilstitrecognisedthat thereisanopportunitytoaddvaluetotheportfolio atapropertylevel,itconcludedthatthisstrategy facesconsiderablechallenges.Theseincludeahigh fixedcorporatecostbase,requiredduetotheREIT structureandasaresultoftheissuesbeingdealtwith bytheCompanyatthetime,andtherequirement forcapitalexpendituretodriveanincreaseinrental valueandvaluationoftheportfolio.Inaddition,the Boardwasawarethatthesizeofthevehiclefollowing therepaymentofdebtwouldbeconsideredtoosmall bymanyinvestorswhenconsideringitsfutureasa listedREIT. Asaresultofthesefactors,andhavingcarefully consideredtherangeofoptionsavailableforthe Company,theBoardconcludedthatitwasinthe bestinterestsofshareholderstoproposeamanaged wind-downstrategyfortheCompanypursuantto whichtheassetsoftheCompanywouldbesoldwith theobjectivesofoptimisingremainingshareholder valueandrepayingtheCompany’sloanbalance.The implementationoftheproposedManagedWind- DownrequiredanotherchangetotheCompany’s investmentpolicy.Accordingly,on16September2024, shareholdersapprovedtheNewInvestmentPolicy, whichisintendedtoallowtheCompanytorealiseall theassetsinitspropertyportfolioinanorderlymanner withtheviewtorepayingborrowingsandmaking returnsofcapitaltoshareholderswhilstaimingto optimisevaluefortheCompany’sassets.  HomeREITplc | AnnualReport | Fortheyearended31August2024     15 Strategic report Management report—continued Outlook Asnotedabove,shareholdersapprovedtheNew InvestmentPolicyfortheManagedWind-Downon 16September2024. Approach to the Managed Wind-Down ItisexpectedthattheCompany,viaAEW,willadopta broadandmanagedapproachtothedisposalofassets, withaviewtooptimisingvalueforshareholders.A proportionofthepropertyportfoliowassoldatauction before31December2024tomeettherequirements ofScottishWidowsandrepayalloutstandingdebtand associatedfees. Afteranextensivemarketingcampaigncommenced inQ42024,asignificantnumberofpartiesshowed interestintheremainingpropertyportfolio.Non- bindingofferswerereceivedforthefullportfolioin February2025andduediligenceisprogressing.The Companyanticipatesthattheportfoliosaleprocess willconcludeinthefourthquarterof2025.However, thereisnoassurancethattheportfoliosalewill progressunderthecurrentexpectedtimelineor withtermswhichareacceptabletotheBoard.AEW continuestoundertakeassetmanagementinitiatives focusedonaddingvaluetotheportfolioandpreparing themforsale. GiventheCompany’soriginallystatedobjectiveof providingaccommodationforthehomeless,the realisationprocesswillbemanagedinawaytominimise impactanddisruptiontovulnerableoccupiers. Return of capital to shareholders TheBoardintendstoreturncapitaltoshareholdersas soonaspossibleafterthecompletionoftherealisation strategy.However,shareholdersshouldbeawarethat theabilityoftheCompanytomakedistributionsto shareholderswillbeconstrainedwhilsttheCompany facespotentialgrouplitigation.Further,theCompany expectsitwillneedtoretaincapitaltomeetcorporate costsandallowittopursuelegalactionagainstthoseit considersresponsibleforwrongdoing. Themostappropriatetimingandmechanismto returncapitaltoshareholderswillbedeterminedin duecourse.Followingshareholderapprovaltocancel theCompany’ssharepremiumaccountpassed on20February2025,thecancellationoftheshare premiumaccountwasapprovedbytheCourton 29April2025andbecameeffectivewiththeregistration oftheCourtorderatCompaniesHouseon2May2025. Thepurposeofthecancellationofthesharepremium accountistocreateanewspecialdistributable reserveofapproximately£596millionwhichcanbe utilisedbytheCompanytomakereturnsofcapitalto shareholders,whenitisapositiontodoso. Financial statements and restoration of listing Followingpublicationofalloutstandingfinancial information,theCompanywillthenbeabletoapply totheFCAforarestorationofitslistingandthe recommencementoftradingontheLondonStock Exchange.TheCompanyexpectstoengagewith shareholdersaheadofthisimportantevent. AEW UK Investment Management LLP 17October2025 16     HomeREITplc | AnnualReport | Fortheyearended31August2024 ThisEnvironmental,SocialandGovernancePolicy applies to the Company and the Group. TheBoardtogetherwithAEW(together,“we”forthe purposesofthisESGreportonly),havearesponsibility toconducttheGroup’sinvestmentbusinessina sociallyresponsiblewayandrecognisethatour investorsmayhavethesamevalues. Environmental,Social&Governance(“ESG”) TheBoardbelievesthatESGshouldbeakeyprinciple ofAEW’sapproachtoResponsiblePropertyInvesting (RPI)andthatasustainableandsociallyresponsible approachtorealestateinvestmentmanagementboth protectsandenhancesthevalueofourassets,nowand inthefuture. AEWisfullyawareoftheimpactofouractivities onenvironmentalandsocialissuesbothfromour businessandourinvestment,assetmanagementand developmentactivities.TothisendAEWiscommitted toimplementingacomprehensiveSociallyResponsible Investment(SRI)policy.BydoingsoAEWexpectto meetourstakeholders’expectations,whetherthey areclients,tenants,providers,employees,oranyother individualwithwhomweinteract. AEW’spolicyisalignedwiththeinternationalclimate agreementsignedinParisinDecember2015asclimate changeisamajorchallengeforhumanitythatposes importantrisksandcreatesopportunitiesforthe realestateindustry.TherealestatesectorinEurope accountsforsome40%oftotalenergyconsumption andabout25%ofgreenhousegas(GHG)emissions. Overthecomingyearswebelievethatbothoccupiers andinvestorswillincreasinglyfocusonthewayinwhich ESGissuesaremanaged.Inturn,thisisexpectedto impactonbuildingobsolescence,lettability,ratesof leaserenewalsandultimatelytherentalandcapital valuesforindividualassetsifESGissuesareignored. However,theBoard’sandAEW’sfiduciarydutyto investorsmustalwayscomefirstinallinvestment decision-making.AEWengagewithclientswherever possibletoeducateontheimportanceofESG.Where wefeelitisimportanttodosoandcostscanbejustified intermsofperformanceobjectives,orarerequiredto complywithUKlegislation,wewillseektoincorporate oradoptbestpractice. Environmental Bylawallrentedresidentialpropertymusthavean energyperformancecertificate(EPC)ratingof“E” orabove.Thegovernmenthaveproposedthatby December2028,allexistingprivatelyrentedproperties willneedanEPCratingof“C”orabove.AspartofAEW’s inspectionprogramme,includingtheVibrantsurveys, complianceisbeingmonitoredandwillberegularly reportedtotheBoard. Ofthepropertiesheldasat31August2024theGroup’s currentEPCratingsareasdetailedbelow: Rating Numberof Properties % A 2 0.2 B 6 0.4 C 402 29.2 D 734 53.4 E 222 16.2 F 6 0.4 G 3 0.2 Total 1,375 100.0 Social Wehaveidentifiedthemajorstakeholdersinthe Group’sbusinessandendeavourtoconsidertheimpact ofourdecisionsuponthese. Shareholders:AsapublicgrouplistedontheLondon StockExchange,theGroupissubjecttotheListing RulesandtheDisclosureGuidanceandTransparency Rules.TheListingRulesincludealistingprinciplethat alistedgroupmustensurethatittreatsallholdersof thesameclassofsharesthatareinthesameposition equallyinrespectoftherightsattachingtosuch shares.Weuseourbestendeavourstoabidebythe ListingRulesatalltimes. Employees:Asanexternallymanagedrealestate investmenttrust,theGroupdoesnotgenerally haveanyemployees(exceptLynneFennahsince 15January2025,whoadvisestheBoardonhistorical mattersasapart-timeemployee)asallitsfunctionsare carriedoutbythirdpartyserviceproviders.However, theGrouphasaBoardofDirectorscomprisedof non-executiveDirectorswhogenerallyreceivefixed feeremuneration.TheGroup’sBoardreceiveregular marketandregulatoryupdatesfromitsprofessional adviserssuchasAEW,theBrokerandtheCompany Secretaryandattendseminarswhererequired. Strategic report ESG report  HomeREITplc | AnnualReport | Fortheyearended31August2024     17 Tenants:AEWperformsextensiveduediligencebefore atenantisselected,andduringthetenancyagreement weaimtomaintainaconstructiverelationship.Wetake intoaccountourtenants’changingneedsanduseour expertisetoassisttheminanywaywithinourability. Occupants:Inourcommitmenttofosteringa sustainableandresponsibleinvestmentstrategy, werecognizethattheoccupiersofourproperties arenotonlytenantsbutessentialstakeholders. Theirwellbeingisparamountandwetakeproactive measurestoensurethatallourpropertiescomplywith applicablelaws,includinghealthandsafetystandards, therebycreatingasecurelivingenvironment.We arecommittedtodrivingimprovementsinthe qualityofaccommodation,recognizingthatasafe andcomfortablehomeisfundamentaltothelivesof occupiers.Inparticular,weplacegreatemphasison theneedsofsupportedlivingtenants,whotypically requireadditionalsupportfromthirdpartyintensive housingmanagers. Service Providers: AlistoftheGroup’skeyservice providerscanbefoundintheCompanyInformationon page120.TheGroupconductsallitsbusinessthrough itskeyserviceproviders.Beforetheengagement ofaserviceprovider,weaimtoensurethatour businessoutlookaswellasourvaluesaresimilar.The Groupperformsanannualevaluationofallofitskey serviceproviderstoensureinteraliathatourvalues remainaligned. Compliance TheCompanywasincorporatedandregisteredin EnglandandWalesasapubliccompanylimitedby shares.TheGroupisnotauthorisedorregulatedasa collectiveinvestmentschemebytheFCA,however itissubjecttotheListingRulesandtheDisclosure GuidanceandTransparencyRules.Theprincipal legislationunderwhichtheGroupoperatesisthe CompaniesAct2006.WhiletheGroupholdsincome producingpropertyassets,theDirectorsintend,at alltimes,tocontinuetoconducttheaffairsofthe GrouptoenabletocontinuetoqualifyasaREITfor thepurposesofPart12oftheCTA2010(andthe regulationsmadethereunder). TheGroupseekstocomplywiththeAICCodeof CorporateGovernance(the“AICCode”)andwillreport onitscompliancewiththeAICCodeeachyearinits AnnualReport. Risk Management Ourgovernancemodelisdesignedtomanage investmentriskandoperationalrisk.Therisk managementprocessandsystemsofinternalcontrol aredesignedtomanageratherthaneliminatetherisk offailuretoachievetheCompany’sobjectives.Itshould berecognisedthatsuchsystemscanonlyprovide reasonable,notabsolute,assuranceagainstmaterial misstatementorloss. TheBoardhasreviewedtheriskmanagement governancemodelduringtheperiodandhasmade minoramendmentstothemodel,including: i. InternalinspectionofpropertiesbyJLL,Vibrantand otherthirdparties; ii. EnhancementoftheGroup’swhistleblowingpolicy forthirdpartiesincludingacontactaddressfor theChairandrequestforkeyserviceprovidersto providerelevantemployeescontactdetailsofChair toraiseconcerns; iii. Health&Safety–AsaresultoftheAmended InvestmentPolicywhichincludesanewleasing modelremovingtherequirementforallleasesto befullyrepairingandinsuring(FRI),theGroupis exposedtoincreasedhealthandsafetyrisk.Health &safetyisastandardpriorityitemontheBoard’s agendawithAEWhavinganestablishedHealth& SafetyCommitteewhichregularlyreportsmaterial matterstotheBoard. OperationalRisk AEWsinceappointmenton21August2023continues toassesstheoperationalriskonacontinuousbasis andreportregularlytotheBoardonoperational riskmatters. Responsible investment Ownership TheGroup’sInvestmentManagerwastheownerofthis policyatthereportingperiodend.Thepolicyissubject toannualreview. AEW,appointedon21August2023,iscommittedto creatinglong-termvalueforshareholdersandadheres toapolicyofsustainableandresponsibleinvestment. AEW’sSRIpolicycanbefoundwithintheCorporate ResponsibilityareaontheGroup’swebsitewww. homereituk.com.AEWreviewsitsSustainabilityPolicy onanannualbasis,andthepolicyisapprovedbythe BoardofAEW. Strategic report ESG report—continued 18     HomeREITplc | AnnualReport | Fortheyearended31August2024 TheGrouppresentedvariousEPRAPerformanceMeasuresandotherKeyPerformanceIndicatorsinthe ManagementReportfortheperiodended31August2021.Giventhesignificantnumberandquantumofnon- recurringadjustmentsrecordedinthe2023and2022financialstatements,theBoarddidnotconsiderthat reportingtheEPRAandotherkeyperformancemeasurementswouldbenefittheuserofthefinancialstatements. FurtherforFY24,consideringtheGrouphasenteredintotheManagedWind-Down,theBoardconsidersthatonly thefollowingkeyperformanceindicators(“KPIs”)asappropriatefortheuseroftheseReportandAccounts: SetoutbelowaretheKPIsthatareusedtotracktheGroup’sperformance. KPI and definition Relevance to strategy Performance Results2024 2023 1. NAV per Share TheNAVattributableto shareholdersdividedby averagesharesoutstanding duringtheperiod. NAVpershareprovides shareholderswithan indicationofGroupvalue. 24.25 pence 27.43 pence Decreaseof11.6%,resulting fromthelossrecognised inFY24. 2. Total expense ratio Thepercentageoftotaloperating expenses,includingmanagement feesandadministrativeand operationalcostsexpressedasa percentageoftheNAV. Thetotalexpenseratioisa keymeasureoftheGroup’s operationalperformanceand canbeusedtomeasureGroup performanceagainstpeer companies. 10.3% 9.1% Asdescribedonpages 13and14,expensesgrew astheGroupincurred directpropertyoperating expensesrelated topropertiesunder managementcontracts. 3. Loan-to-Value Ratioofgrossdebtasa percentageofthevaluationof investmentproperty. LTVmeasuresthe prudenceofbalancing highershareholderreturns andadditionalportfolio diversificationagainstthe additionalriskofleverage. 35.3% 53.3% GroupLTVdecreaseddue tothe£126.2millionloan repaymentsmadefrom excesscashandproperty disposalproceedsin2024. Strategic report Key performance indicators  HomeREITplc | AnnualReport | Fortheyearended31August2024     19 Strategic report Strategic overview Purpose, business model and strategy TheBoardisresponsiblefortheoverallmanagement oftheGroupand,inaccordancewiththeAICCode, theBoardestablishestheGroup’spurpose,valuesand strategy,andreportstoshareholdersonthedetailof howthisisachieved. Asaninvestmentgroup,theGroup’spurposeis expressedinitsinvestmentobjective.Itsinvestment policydescribesthestrategyadoptedbytheGroup toachieveitsobjective.Theinvestmentobjectiveand policystatedbelowshouldbeconsideredinconjunction withtheChair’sstatementandtheotherdisclosures withintheStrategicReportwhichprovideanin-depth reviewoftheGroup’sperformanceandfuturestrategy. TheAmendedInvestmentPolicy,whichissummarised onpage10,wasapprovedbyShareholderson 21August2023.TheNewInvestmentPolicywas approvedbyshareholderson16September2024.In accordancewiththeAICCode,thecurrentinvestment objectiveandpolicy,whichwaseffectivefrom 16September2024,isdetailedbelow. Investment objective TheCompany’sinvestmentobjectiveistorealiseall existinginvestmentsintheCompany’sportfolioin anorderlymanner,withaviewtoultimatelyreturning availablecashtoshareholders,followingthesettlement ofallamountsduetotheLender. NewInvestmentPolicy TheCompanywillendeavourtorealiseallof theCompany’sinvestmentsinamannerthat achievesabalancebetweenmaximisingthevalue ofitsinvestmentsandmakingtimelyreturnsto shareholders. TheBoardintendsthattheproceedsofanyasset realisationswillbeusedtosettleallamounts outstandingtotheLenderbeforeanysuchproceeds aredistributedtoshareholders. TheCompanywillnotmakeanyfurtherinvestments. Capitalexpenditurewillbepermittedwhereitis deemednecessaryordesirablebytheInvestment ManagerinconnectionwiththeManagedWind-Down, primarilywheresuchexpenditureisnecessaryto protectorenhanceanasset’srealisablevalue,orin ordertocomplywithstatutoryobligations. DiversificationofRisk Thenetproceedsfromassetrealisationstodate havebeenusedtosettleallamountsoutstandingto theLender.Futurenetproceedswillbereturnedto shareholders(netofprovisionsfortheCompany’s costs,expensesandpotentialliabilities)insuchmanner astheBoardconsidersappropriateandwhenitis abletodoso. Excesscashwillbeheldinsterlingonlyandplacedon depositand/orheldascashequivalentsecurities,other cashequivalents,cashfundsorbankcashdeposits, pendingitsreturntoshareholders. Borrowing policy Thenetproceedsfromrealisationshavebeenused tosettleallamountsoutstandingtotheLender.The Companywillnottakeonanynewborrowings. AnymaterialchangetotheCompany’sinvestment policysetoutabovewillrequiretheapprovalof shareholdersbywayofanordinaryresolutionata generalmeetingandtheapprovaloftheFinancial ConductAuthority.Non-materialchangestothe investmentpolicymaybeapprovedbytheBoard. Approach to the Managed Wind-Down ItisexpectedthattheCompany,viaAEW,willadopta broadandmanagedapproachtothedisposalofassets, withaviewtooptimisingvalueforshareholders.Sales willbestructuredandexecutedtoachievebestvalue andtominimisedisruptiontotheunderlyingoccupiers oftheproperties.Adecisiononthepreferredmethod ofdisposalwillbedeterminedbyanumberoffactors, includingpropertycondition,location,tenanttypeand leaseterms. DuringtheManagedWind-Downassetmanagement initiativeswillbefocusedonaddingvaluetoproperties andpreparingthemforsaletomaximiseliquidity. Inaddition,giventheCompany’soriginallystated objectiveofprovidingaccommodationforthe homeless,therealisationprocesswillbemanagedina waytominimiseimpactanddisruptiontounderlying, vulnerableoccupiers. 20     HomeREITplc | AnnualReport | Fortheyearended31August2024 Return of capital to shareholders ItistheintentionoftheBoard,followingthesettlement ofallamountsoutstandingtotheLender,thatcapital willbereturnedtoshareholdersuponthecompletion oftherealisationstrategy.However,shareholders shouldbeawarethattheabilityoftheCompanyto makedistributionstoshareholderswillbeconstrained whilsttheCompanyfacespotentialgrouplitigationand anFCAinvestigation.Atpresent,theBoardisunableto assessproperlyitsabilitytomakedistributionsunder theapplicablelegalrequirements.Inaddition,the Companyexpectstoretaincapitaltomeetcorporate andcompliancecostsandallowittopursuelegalaction againstthoseitconsidersresponsibleforwrongdoing. Themostappropriatetimingandmechanismto returncapitaltoshareholderswillbedetermined induecourse. Restoration of listing Theinterimresultsfortheperiodsto29February2024 and28February2025areexpectedtobepublished duringthe4thquarter2025andtheannualreportand accountsfortheyearended31August2025assoon aspracticablethereafter.Followingpublicationofall outstandingfinancialinformation,theCompanywill thenbeabletoapplytotheFCAforarestorationof itslistingandtherecommencementoftradingonthe LondonStockExchange. Furtherdetailsregardingtheexpectedtimetable forrestorationoflistingwillbeannouncedupon publicationoftheabovefinancialinformation.The Companyexpectstoengagewithshareholdersahead ofthisimportantevent. Business and status of the Company TheCompanyisregisteredasapubliclimitedcompany andisaninvestmentcompanywithinthetermsof section833oftheCompaniesAct2006.TheCompany isaREITforthepurposesofPart12oftheCorporation TaxAct2010.ItwillbetreatedasaREITsolongasit continuestomeettheREITconditionsinrelationtoany accountingperiod. TheCompanywasincorporatedon19August2020. ItsSharestradeonthePremiumSegmentoftheMain MarketoftheLondonStockExchange.Thelistingof theCompany’sordinaryshareswassuspendedon 3January2023duetothenon-publicationofitsannual financialreportwithinfourmonthsaftertheendofits financialyearforFY22,contrarytotheFCA’sDisclosure GuidanceandTransparencyRule4.1.3. Employees,humanrights,socialand community issues TheBoardrecognisestherequirementunder CompaniesAct2006todetailinformationabouthuman rights,employeesandcommunityissues,including informationaboutanypoliciesithasinrelationto thesemattersandtheeffectivenessofthesepolicies. Theserequirements,whichmayapplytotheGroup’s investments,donotapplytotheCompanyas,other thanLynneFennahwhosince15January2025isa part-timeemployeeadvisingtheBoardonhistorical matters,ithasnoemployees,alltheDirectorsarenon- executiveandithasoutsourcedallitsfunctionstothird partyserviceproviders.TheCompanyhastherefore notreportedfurtherinrespectoftheseprovisions. AEWisanequalopportunitiesemployerwhorespects andseekstoempowereachindividualandthediverse cultures,perspective,skillsandexperienceswithinits workforce.ForfurtherinformationonAEW’sprinciples inrelationtopeopleincludingdiversity,genderpay, employeesatisfactionsurveys,wellbeingandretention, pleaserefertotheESGlinkwithintheCorporate Responsibilityareaatwww.homereituk.com. ModernSlaveryAct2015,BriberyAct2010and CriminalFinancesAct2017 TheCompanyisnotrequiredtoproduceastatement onslaveryandhumantraffickingpursuanttothe ModernSlaveryAct2015asitdoesnotsatisfyallthe relevanttriggersunderthatActthatrequiressuch astatement.TheCompanydoes,however,closely monitorthepoliciesofitssupplierstoensurethat properprovisionsareinplace. AEWUKInvestmentmanagementLLP,theInvestment ManagertotheCompany,ispartoftheNatixisGroup, whosestatementonSlaveryandHumanTrafficking hasbeenpublishedinaccordancewiththeModern SlaveryAct2015. http://natixis.groupebpce.com/wp-content/ uploads/2022/11/Modern-Slavery-Act- statement-2024.pdf Gender diversity Asat31August2024,theBoardofDirectorsofthe Groupcomprisedofsevendirectors.Twofemaleand fivemaleDirectors.Asatthedateofthisreport,the BoardofDirectorsoftheGroupiscomprisedofthree maledirectors.TheappointmentofanynewDirector ismadeinaccordancewiththeCompany’sdiversity policyasdetailedonpage50. Strategic report Strategic overview—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     21 Strategic report Strategic overview—continued Stakeholder engagement StakeholdersareintegraltothesuccessoftheGroup. TheBoardrecognisesthat,bothindividuallyand collectively,itsoverarchingdutyistoactingoodfaith andinawaythatismostlikelytopromotethesuccess oftheCompanyandtheGroup.Assetoutinsection 172oftheCompaniesAct2006,theDirectorsactfor thebenefitofshareholdersandintheinterestsof stakeholdersasawhole,havingregard,amongstother matters,to: • thelikelyconsequencesofanydecisioninthe long-term; • theneedtofostertheGroup’sbusiness relationshipswithsuppliers,tenants,occupants andothers; • theimpactoftheGroup’soperationsonthe communityandtheenvironment; • thedesirabilityoftheGroupmaintaininga reputationforhighstandardsofbusinessconduct; and • theneedtoactfairlybetweenshareholdersof theGroup. AllBoarddiscussionsincludeconsiderationofthe longer-termconsequencesofanykeydecisionsand theirimplicationsfortherelevantstakeholders. Agroup’sstakeholdersarenormallyconsideredto compriseitsshareholders,employees,customers, suppliersaswellasthewidercommunityinwhich theGroupoperatesandimpacts.TheGroupdiffers asitisanexternallymanagedinvestmenttrustithas noemployeesand,intermsofsuppliers,itreceives professionalservicesfromanumberofdifferent providers,principalamongthembeingAEW. Throughregularengagementwithitsstakeholders, theBoardaimstogainaroundedandbalanced understandingoftheimpactofitsdecisions.Feedback fromstakeholdersisgatheredbyAEWinthefirst instanceandcommunicatedtotheBoardinitsregular quarterlymeetingsandotherwiseasrequired. Theimportanceofstakeholdersistakenintoaccount attheboardmeetings,withdiscussionsinvolving carefulconsiderationofthelonger-termconsequences ofanydecisionsandtheirimplicationsforstakeholders. DetailsofhowtheBoardseekstounderstandthe needsandprioritiesoftheGroup’sstakeholders andhowthesearetakenintoaccountduringallofits discussionsandaspartofitsdecision-makingare setoutbelow: Shareholders TheBoardwelcomesshareholders’viewsand iscommittedtomaintainingopenchannelsof communicationswiththem.TheBoardisresponsible forthecontentofcommunicationregarding corporateissuesandforcommunicatingitsviewsto shareholders.Itaimstoensurethatshareholdersare providedwithsufficientinformationtounderstand therisk/rewardbalancetowhichtheyareexposedby investingintheGroup.Thechannelsofengagingwith shareholdersinclude: Annual General Meeting Allshareholdersareencouragedtoattendandvote attheAnnualGeneralMeeting(“AGM”)andatany generalmeetingsoftheCompany,duringwhichthe BoardandAEWareavailabletodiscussissuesaffecting theGroupandtoprovideanoverviewontheGroup’s performanceanditsfutureoutlook.TheCompany valuesanyfeedbackandquestionsitmayreceivefrom shareholdersaheadofandduringtheAGMandtakes action,asappropriate. Meetings with shareholders TheBoard,AEWandtheBrokerregularlymeetwith theCompany’sshareholderstoprovideGroupupdates andtofosterregulardialogue.Feedbackfromall shareholdermeetings,andshareholders’views,are discussedbytheBoardonaregularbasis.Shareholders wishingtocommunicatedirectlywiththeBoardshould contacttheCompanySecretaryattheregisteredoffice address.TheChairandtheotherDirectorsareavailable throughouttheyeartomeetwithshareholdersto understandtheirviewsontheGroup’sperformance andgovernancewheretheshareholderswishtodoso. 22     HomeREITplc | AnnualReport | Fortheyearended31August2024 Strategic report Strategic overview—continued Publications TheAnnualandHalf-YearlyReportsaremadeavailable ontheCompany’swebsite.Thesereportsintend toprovideshareholderswithaclearunderstanding oftheGroup’sportfolioandfinancialposition.In additiontotheAnnualandHalf-YearReports,the investorpresentationsprovidedsinceinceptionby AEWandAHRAandanyprospectusesandcirculars issuedbytheGrouparealsoavailableonthewebsite. TheCompanyprovidesregularupdatesonportfolio acquisitions,disposals,tenantupdatesandanyother relevantmatterbywayofmarketannouncements. WiththeadoptionofaManagedWind-Downstrategy, theCompanywillcontinuetoprovideupdatesto shareholdersbutthiswillbedrivenbyevents(such asinrespectofmaterialdisposalsandconsequential reductionsinborrowings)ratherthanafixed monthlyrelease. Shareholder concerns Intheeventthatshareholderswishtoraiseissuesor concernswiththeBoardorAEW,theyarewelcome towritetotheCompanyattheregisteredoffice address.TheSeniorIndependentDirectorand othermembersoftheBoardarealsoavailableto shareholdersiftheyhaveconcernsthathavenotbeen addressedthroughthenormalchannels.Shareholders canalsowritedirectlytotheChairoftheCompany throughtheCompanySecretary,asdetailedonthe Company’swebsite. Tenants AEWhasbeenactivelyengagingwithalltenantsas itassessestheirsuitabilityanddevelopsitstenant specificstrategyforre-tenantingassets.AEW hasattemptedtoworkwithtenantstorationalise portfoliosandwhereappropriatenegotiatesurrenders ofleasesinordertotakebackcontroloftheassets. AEW’sAssetManagementteam,maintainsanongoing dialoguewithtenantseitherdirectlyorinthecaseof occupiersonASTsthroughitsappointedproperty manager.AEWcontinuestoengagewithprospective tenantsaspartofthestrategytore-tenantthe portfolioduringtheManagedWind-Down. Lenders RegularmeetingswereheldbetweentheLender,the BoardandAEWtodiscussandassesstheCompany’s compliancewithbankingcovenantsandagreewaivers, repaymentofloanfacilitiesandadditionalfeespayable. TheoutstandingloanbalancesandDeferredFeeswere repaidinNovemberandDecember2024,respectively. Society and the environment Asaninvestorinrealestate,theGroup’sassetshave animpactonthebuiltenvironment.TheGrouphasan ESGpolicywhichisincludedonpages16to17ofthis AnnualReport. Key decisions made during the year AppointmentofNon-ExecutiveDirectors TheBoardapprovedtheappointmentofMichael O’DonnellastheChairoftheCompanywitheffect from18January2024andPeterWilliamsasthe SeniorIndependentDirectorfrom2April2024and asManagementEngagementCommitteeChair. RodDaywasappointedasIndependentNon-Executive Directoron7June2024andasAuditCommittee Chairdesignate. Repaymentofdebt TheBoardoriginallyapprovedtheaccelerated repaymentoftheloansusingproceedsfromthesale ofpoororworsepropertiesexpectingtorefinancethe remainingportfolio.WhentheBoardconcludeditcould notobtainanewloanontermsitcouldrecommend toshareholdersitagreedtoacceleratethesaleof additionalpropertiestofullyrepaytheloansbefore December2024.Additionally,theBoardagreedtopay DeferredFees. Key decisions made during post period end Repaymentofdebt On27November2024,theGroupmadeitsfinal paymentontheloansandon16December2024paid theDeferredFeestotalling£9.0million. Changeofinvestmentpolicy TheBoardproposedaNewInvestmentPolicyfor theManagedWind-DownoftheGroupwhichwas approvedbyshareholderson16September2024. TheNewInvestmentPolicyisintendedtoallowthe Grouptorealisealltheassetsinitspropertyportfolio inanorderlymannerwiththeviewtorepaying borrowingsandmakingtimelyreturnsofcapitalto shareholderswhilstaimingtooptimisethevalueofthe Group’sassets. ResignationofNon-ExecutiveDirectors inplaceattheIPO WiththepublicationoftheAnnualReportand Accountsfortheyearended31August2023on 14January2025,thedirectorsinplaceattheIPO resignedfromtheboard.  HomeREITplc | AnnualReport | Fortheyearended31August2024     23 TheBoard,throughdelegationtotheAuditCommittee,hasundertakenarobustassessmentandreviewofthe principalrisksfacingtheCompanyandtheGroup,togetherwithanexercisetoidentifyanynewriskswhichmay havearisenduringtheperiod,includingthosethatwouldthreatenitsbusinessmodel.Theserisksareformalised withintheGroup’sriskmatrix,whichisregularlyreviewedbytheAuditCommittee.Aspartofitsriskmanagement process,theAuditCommitteeseekstoidentifyemergingriskstoensurethattheyareeffectivelymanagedasthey developandrecordedintheriskmatrix. Asaresultoftheeventsduringtheperiod,theprincipalrisksanduncertaintieswhichtheGroupfacesunderthe NewInvestmentPolicyasapprovedbyshareholderson16September2024(seepage19foradescriptionofthe policy)aresetoutbelow. Risk Mitigation Investment Objective (Managed Wind-Down) Ability to dispose of all assets maximising value forshareholders: TheCompany’sManagedWind-Downinvestment objectiveistomaximisetheproceedsfromthe saleofallassetsinthemosttimeandcost-efficient mannerandafterrepaymentofloansandall liabilities,returnthenetproceedstoshareholders. TheCompanymaynotachieveitsobjectiveof maximisingreturnswhilstrealisingassetsinan orderlymanner. Theimpactofbringingassetstomarketaspart ofapublicwind-downstrategyandthetime requiredtoexecutedisposalsmayalsohave animpactondisposalproceeds.Assetsmay thereforeberealisedatvalueswhichrepresent amaterialdiscounttothemostrecently publishedindependentvaluations. SalesoftheGroup’sassetsmaytakelonger thananticipated. Themarketforresidentialpropertiesisuncertain duetoevolvingGovernmentpoliciesonrenters’ rightsandgeneralmarketconditions.Furtherthe Companyhasamixofproperties,includingsingle familyhomes,HMOs,investmentproperties, aswellasamixoftenantsincludingsupported livingandPRS. Itisintendedsaleswillbestructuredandexecutedtoachievebestvalue. TheCompanyiscurrentlymarketingtheentireportfolioforsaleinone transaction.Themixofpropertyandtenanttypesmayrequirethe Companytosellpropertiesinsmallerlotsizesifitcannotfindasingle buyerforaportfoliosale,whichcouldimpactpriceattainedandthetiming andcostofcompletingthesales. Intheeventthatthesaleofsuchadiverseportfolioisnotfeasible,the Companywillconsiderotherformsofpropertysalesincludingviaauction, privatetreatyandindividualassetsales. TheGrouphasalreadymetoneofthekeyaspectsoftheinvestment objective,inthattheGrouphassettledallamountsoutstanding,including theloanfacilitiesandtheDeferredFees,totheLendersubsequent toyear-end. Therealisationprocesswillbecarriedoutinawayintendedtominimise impactanddisruptiontovulnerableoccupiers. TheBoardregularlyreviewstheprogressoftheportfoliosaleandthe operationofthepropertiesduringthemarketingperiod.TheBoardseeks regularadvicefromtheindependentadvisersonthesale(JLL,TT&Gand Allsops),includingformalupdatesfromalladvisorsatBoardmeetingsand informalad-hocupdatesmorefrequently. Control of Operating Expenses: TheGrouphassignificantoperatingcosts includingthecostsofrunningalistedbusiness andthecostsofdefendingitselfandtaking actionagainstwrongdoers.Thelonger theseworkstreamscontinuethemorethat willneedtobedeductedfrompotential shareholderdistributions.Thereisnocertainty thattheGroupwillrecovermeaningfulsumsfrom thirdparties. TheBoardhasforecastandwillcontinuetoassesscurrentandfuture potentialliabilitiesasitconsidersreturningcapitaltoshareholders. TheCompanyintendstodefenditselfvigorouslyinrespectofthe threatenedlitigationandhasdeniedtheallegationsmadeagainstit. TheBoardregularlyengageswithitsadvisorstoconsiderthemeritsof theCompany’spositionandtoweighthecost/benefitofbringinglegal proceedingsagainstthoseitconsidersresponsibleforwrongdoing. AEWupdatesthecashflowforecastmonthlyfor13weeksand15months, whichisreviewedatleastmonthlywiththeBoard. Strategic report Principal risks and uncertainties 24     HomeREITplc | AnnualReport | Fortheyearended31August2024 Risk Mitigation Return of capital may be delayed and reduced: TheCompanymaynotachieveitsinvestment objectiveofreturningavailablecashtoshareholders inatimelymannerandreturnsmaybeimpacted. Thedistributionsthatshareholdersreceivewill besubjecttodeductionsfor,amongotherthings, directdisposalcosts,tax,managementfees, professionalfeesandrunningcoststhroughout theremaininglifeoftheGroup.Thesecostsmay reducethesumsavailablefordistributionto shareholdersinthefuture. Further,theCompany’sabilitytomake distributionsmaybeconstrainedwhilstthe Companyfacespotentialgrouplitigation. TheDirectorsintendtomakeaninitialreturnofcapitaltoshareholders uponthecompletionoftherealisationstrategyandafterconcluding onappropriateretainedfundstowindthebusinessdownandcover contingentliabilities. TheBoardisconsideringallavailableoptionsofreturningcashto shareholdersincluding(butnotlimitedto)dividenddistributions, issuanceofBsharesandtenderoffersforoutstandingshares.Themost appropriatetimingandmechanismtoreturncapitaltoshareholdersis beingconsideredandwillbecommunicatedinduecourse. Property Leasing and Operations Direct letting of property Asnon-performingtenantsareremoved,a propertymanagerisappointedtoundertake theday-to-daytasksofoperatingtheproperty, withoccupierscontractingdirectlywithaGroup company.Thedirectlettingmodelincreasesrisks totheCompanyincluding: 1. Increasedcontroloverpropertiesand thereforegreaterresponsibilityforhealthand safetyandtechnicalcompliance. 2. Directresponsibilityforpropertyoperating costssuchasutilities,counciltaxes, insurance,repairsandmaintenance. 3. ForSupportedLivingproperties,directco- ordinationwiththeCounciltoobtainapproval forfundingandprovisionofadequatesupport tooccupants.Forpropertiesnotinpayment, collectionofrentsisunlikely. 4. ForHMOs,increasedcomplianceand licensingrisks. 5. Forallproperties,responsibilitytoensure propertiesareoccupiedandrentscollected anddebtorschasedwhereappropriate. TheAEWAssetManagementteammeetsmonthlywitheachproperty managertoreviewmonthlyperformance.Thosemeetingsincludea reviewoffinancialresults,leasingandvacancystrategy,compliance reportingandsignificantrepairsandmaintenance.Allrequestsforcapital expendituresarepre-approvedandsignificantworksaresignedoffbyan independentthirdpartypriortosettlingassociatedinvoices. TheAEWAssetManagementalsomeetweeklywitheachProperty Managertoreviewandapproveactionsonurgentmattersandprogress onkeyinitiatives,includingobtainingapprovalforsupportedliving propertiestobeinpayment. Strategic report Principal risks and uncertainties—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     25 Risk Mitigation Intensive Housing Managers (IHM) and PropertyCost: TheGrouphasappointedthirdpartyspecialists includingIHMandpropertymanagers,whichhas resultedinadditionalcoststotheGroup. AEWhascontrolsinplacearoundexpendituresmadebytheIHMand propertymanagersinaccordancewithcontractualagreements.AEW monitorsexpenditureagainstexpectationsandprovidesregular reportingtotheBoardonpropertiessubjecttoIHMandproperty managementagreements. Insomeinstances,propertymanagers formerlyusedbynon-performingtenantsmay beappointedbytheCompanyduetotheir knowledgeoftheunderlyingpropertiesand existingrelationshipswithoccupiersinorderto facilitaterentalcollection.AEWmaynothavehad previousexperienceorrelationshipswiththese serviceprovidersandthequalityoftheservice maybeunknown. Wherepossible,AEWnegotiatescontractswithIHMandproperty managersonaflexiblebasistoprovidestabilityandcontinuityofservice thatalignswiththeflexibilityrequiredforsaleofthepropertiesunderthe ManagedWind-Down. IHMandpropertymanagersareheavilyreliedupon toprovideaccurateinformationandproactively resolveissuesastheyarise,includinginrelationto healthandsafety,compliance,licensing,property maintenance,crisisresponse,administration, financialreportingandcashflowforecasting. AEWundertakesappointmentsinaccordancewithitssupplierselection andmonitoringproceduresincludingundertakingduediligenceon serviceproviders. Property Risk Propertiesmaysufferphysicaldamageresulting inlosses(includinglossofrent)whichmaynotbe fullycompensatedbyinsuranceoratall. TheGroupmaintainsacomprehensiveportfolioinsurancepolicy. BuildingDeclaredValueshavebeenupdatedinlinewithrecentformal ReinstatementCostAssessments(whereundertaken)fortypicallylarger propertiesandforlocationsthatareyettobeinspected,theexpiring valueshavebeenestimated. Liquidity risk: Theimpactofbringingassetstomarketas partofapublicwind-downstrategymayalso resultinchangesinrentcollectionlevelsand there-tenantingprocessduetooccupiersand tenantsbeinguncertainoverwhotheirfuture landlordwillbe. TheCompanyisincurringhighcorporatecosts includingsignificantlegal,auditandprofessional fees,anddirectorandofficerinsurance. TheGroup’sinvestmentsaregenerallynot immediatelyliquid. TheliquidityriskhasdiminishedsignificantlynowthattheGrouphas repaidbothloanfacilitiesandtheDeferredFeestotheLendersubsequent toyearend. Asofthedateoftheseaccounts,theGrouphasaccumulatedsufficient cashtofundoperationsforthenext12months.Intheeventthat additionalcashisrequired,theGroupcouldsellpropertiesatauction togenerateadditionalliquiditywithin45-60days. AEWhasaprocedurefortheapprovalofsignificantcapexand unbudgetedexpenses. Surplusproceedsfromremainingpropertysaleswillbeplacedon sterlingonlydepositsand/orheldascashequivalentsecurities,other cashequivalents,cashfundsorbankcashdeposits,pendingitsreturn toshareholders. Real Estate sector Property market – residential including Social Use and Supported Living: Performancewillbesubjecttotheconditionand sentimentofpropertymarketsintheUKincluding SocialUseandSupportedLiving.Asignificant downturnintheunderlyingvalueoftheGroup’s investmentpropertywouldimpactthereturnof fundstoshareholders. Factorsincludeinteraliageneraleconomic climate,excesssupplyorfallindemandfor properties,interestratesandchangesinlaws orgovernmentregulations. Sinceappointment,AEWhasundertakenacomprehensiveinspection programmeviathirdpartiestoassessthequalityoftheassets.AEW’s assessmentofeachpropertyincludingsuitability,capitalexpenditure requirementsandincomeandcapitalreturnprospectstakesintoaccount factorssuchaspropertylocation,localdemandandqualityoperating partnersandtenants. AEWreportsitsstrategyandprogressinachievingobjectivesforthe propertiesandre-tenantingtotheBoardonaregularbasis. Strategic report Principal risks and uncertainties—continued 26     HomeREITplc | AnnualReport | Fortheyearended31August2024 Risk Mitigation Tenant default and liquidation: Failurebytenantstocomplywiththeirrental obligationsandtenantliquidationsaffectsthe Group’sabilitytogeneratecashandnegatively impactsassetvaluation. Asat31August2024,12ofthe20directtenants areofweakcovenantstrengthrepresenting67.6% ofpropertiesand76.1%ofannualcontracted rentasatthattime.Threetenantshadentered liquidationasat31August2024andafurther threetenantshadenteredintoadministrationor liquidationpostperiodend,representing13.0%of propertiesand49.0%ofannualcontractedrentas at31August2024. AEWdeterminedthatthemajorityoftheoriginaltenantswerepoorly capitalisedandlackedlongtermoperatingtrackrecords.Fortenants considerednon-performingorunsuitable,AEWnegotiatedsurrenders oftheleasestotakebackcontroloftheunderlyingpropertiesto:sell theassociatedpropertyatauctionorappointapropertymanagerto letdirectlyasPRSorre-lettoahousingproviderforSupportedLiving. Materialdecisionsinrespectofleasesurrendersandanywriteoffsof arrearsareapprovedbyAEW’sInvestmentManagementCommitteeprior toapprovalbytheBoard. Ifatenantisstillperforming,theleaseswillremaininplace,although termsmaybevaried. AEWprovidesregularupdatestotheBoardonitsstrategy. Property Valuations: Propertyvaluationsareinherentlysubjectiveand uncertainandmaynotreflectactualsalesprices realisedbytheGroup. Realisationswillvary,anditisanticipatedthat therewillbebothpositiveandnegativevariances fromsalespricestovaluationsduringthe ManagedWind-Down.Thereasonsforsucha varianceareconsiderationssuchaschanges inthehousingmarket,changesincondition oroccupationofthepropertysincevaluation, methodofmarketingandsale(portfolio,auction, privatetreaty),tenant,rentpayment,lease structureandinformationavailability. TheBoardhasappointedanexperiencedindependentexternalvaluer, JLL,withrelevantandrecentexperience.JLLconsidersthequalityand thesuitabilityoftheassets,thecovenantstrengthofthetenantandthe rentalvaluefortheexistinguseandLHArates.JLLusesacombinationof theinvestmentapproachandMV-VP.Whereavaluationispreparedonan investmentbasis,limitationsonthedurationoftheincomestreamsare appliedtoaccountforthecovenantstrengthsofthetenants,andtherent levelsdemandedundertheleases.AEWandJLLusethesalesevidenceof recentauctionstosupporttheirestimatesofMV-VPandthisinformation isreviewedwiththeBoardaspartofthevaluationsignoffprocess. Shares Restoration of trading of shares: ThelistingoftheShareswassuspendedon 3January2023duetotheCompanynotfiling accountswithinfourmonthsofyearend. ThereisariskthattheSharesarepermanently delistedfromtheLondonStockExchange. OncetheSharesarerelisted,thereistheriskofa significantsaleofSharesbyinvestorsmaycause themarketpriceoftheSharestofall. TheBoardanditsadvisersregularlyengagewiththeFCAand CompaniesHouseinrelationtothecontinueddelaystothefilingofthe Group’saccounts. TheBoard,AEWandLiberumhavebeenactivelyengagingwith shareholdersduringtheperiodofsuspensionincludingperiodicupdates andshareholderpresentations.InadvanceofrelistingoftheShares, theChairandAEWwillengagewithshareholdersthroughaseries ofmeetings. Volatility of share price during the ManagedWind-Down: TheCompanymayexperiencevolatilityinits shareprice,bothasafunctionofvolatilityinits netassetvalueandareductioninshareliquidity ascapitalisreturnedtoshareholders,whichmay resultinacontinuedorpossiblywiderdiscountto netassetvalue. TheBoard,AEWandLiberumhavebeenactivelyengagingwith shareholdersincludingupdatesandshareholderpresentations.The CompanywillcontinuetoprovideperiodicupdatesduringtheManaged Wind-Down,however,thelevelofdisclosureincludedwillbereviewed throughouttheprocessinordertoprotecttheCompany’scommercial interestsandallowdisposalstobecompletedinamannerthatpreserves shareholdervalue. Shareholders ability to continue to hold shares: IftheCompanyceasestomaintainREITstatus theCompany’sshareswillalsoceasetobe ‘excludedsecurities’undertheFCA’sruleson non-mainstreampooledinvestmentswhichmay haveanimpactontheabilityofcertaininvestors tocontinueholdingtheCompany’sshares. AEWandtheCompany’sspecialisttaxadvisermonitorcompliancewith theREITregimeandliaiseregularlywithHMRC. TheCompanywillmakeappropriateannouncementsintheeventofthe CompanyceasingtomaintainitsREITstatus. Strategic report Principal risks and uncertainties—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     27 Risk Mitigation Engagements with third party service providers Reliance on the performance of the Investment Manager and Other Key Service Providers: TheCompanyhasnoemployees(otherthan LynneFennahsince15January2025,whoadvises theBoardonhistoricalmattersasapart-time employee)andisreliantupontheperformance ofAEWandotherthirdpartyserviceproviders. FailurebyAEWand/oranyserviceprovider tocarryoutitsobligationstotheCompanyin accordancewiththetermsofitsappointment couldhaveamateriallydetrimentalimpactonthe operationoftheCompany. ThefutureabilityoftheCompanytosuccessfully pursueitsinvestmentobjectiveandinvestment policymay,amongotherthings,dependonthe abilityofAEWtoretainitsexistingstaffand/ ortorecruitindividualsofsimilarexperience andcalibre. AEW’sperformanceiscloselymonitoredbytheBoardwithregularreview includingkeystaffandgeneralresourcing. PerformanceofthekeyserviceprovidersismonitoredbytheBoard throughitsManagementEngagementCommittee(“MEC”).TheMEC performsaformalannualreviewoftheongoingperformanceofAEWand otherkeyserviceprovidersandmakesrecommendationstotheBoard abouttheircontinuingappointment. TheBoardundertakesarigorousselectionprocessforanynewkey serviceproviderappointments. Replacementofkeyserviceproviderscould disruptthebusiness,causingpotentialissuesand delaysinreporting. TheMECandtheBoardwillcontinuetomonitortheperformanceofkey serviceprovidersanddeterminewhethercontinuedengagementremains appropriate. Business interruption: Cyber-attacksonAEW’sand/orotherservice providers’ITsystemscouldleadtodisruption, reputationaldamage,regulatory(includingGDPR) orfinanciallosstotheCompany. TheCompany’skeyserviceprovidershavebusinesscontinuityplans inplace.AEWandotherserviceproviders’staffarecapableofworking remotelyforanextendedtimeperiod.AEW’sandotherserviceproviders’ ITsystemsareprotectedbyanti-virussoftwareandfirewallsthatare updatedregularly. Taxation Compliance with REIT rules: FailuretocomplywiththeREITrulesandother regulationsmayhaveanegativeimpacton theCompany. TheBoardexpectsthattheCompanywill continuetofulfiltherelevantconditionstoqualify forUKREITstatusintheshortterm.However, therequirementsformaintainingREITstatus arecomplex. AstheManagedWind-Downprogresses,the Companycannotguaranteethatitwillmaintain continuedcompliancewithREITrequirements, particularlyinitslatterstageswhentheportfolio hasbeenfullyrealised.Thebasisoftaxationofany shareholder’sshareholdingintheCompanymay differorchangemateriallyiftheCompanyfailsor ceasestomaintainitsREITstatus. AEWandtheCompany’sspecialisttaxadvisermonitorcompliancewith theREITregimeandliaiseregularlywithHMRC. Potential Limitations on Methods of Returning Capital to Shareholders TheCompany’sstatusasaREITmayrestrict theCompany’sdistributionopportunitiesto Shareholders(distributionstoSubstantial Shareholders) AEWwillmonitorthepositionandprovideregularupdatestotheBoard. Strategic report Principal risks and uncertainties—continued 28     HomeREITplc | AnnualReport | Fortheyearended31August2024 Risk Mitigation Governance, regulatory compliance and litigation FCA regulations and investigation: FailuretocomplywithFCAregulationsand adversefindingsfrompendinginvestigationsmay haveamaterialadverseimpactontheCompany’s profitability(becauseofpossiblefines),theNAV andthepriceoftheShares. TheBoardseeksregularadvicefromitsadvisersandtheBoardhas confirmedthatitwillco-operatefullywiththeFCAinvestigation. Risk of potential litigation from shareholders against the Group or a group action: Asaresultofthepotentialshareholder grouplitigationagainsttheCompanyandthe Company’sDirectorswhowereinofficeatIPO, theCompanywillcontinuetoincursignificant legalexpensesandtheabilityoftheCompany tomakedistributionstoshareholdersmaybe constrained,inwholeorinpart. TheCompanyintendstodefenditselfvigorouslyinrespectofthe threatenedlitigationandhasdeniedtheallegationsmadeagainstit. TheBoardregularlyengageswithitsadvisersonpotentialexposure tolitigation. Board – replacement, experience and succession: AlloftheBoardmemberswhowereinofficeat IPOstooddownon14January2025following publicationofthe2023financialresults. TheremainingDirectorswereappointedduring 2024andmaylackhistoricalknowledgeofissues encounteredbytheGroup. SinceJanuary2024,theCompanyhasappointedanewIndependent Non-ExecutiveChair,aSeniorIndependentNon-ExecutiveDirector(now MECchair)andanotherNon-ExecutiveDirectorwhoisnowtheAudit CommitteeChair. InassemblingthenewChairandDirectors,carefulconsiderationhasbeen giventotheappropriateskills,experience,knowledge,culture,capacity andindependenceoftheincomingBoardmembers. TheretiringDirectorswillcontinuetoassisttheCompany,when necessary,onhistoriclegalandregulatorymatters,andLynneFennahis employedonapart-timebasistoprovideadditionalsupportinrelationto thesematters. TheBoard,throughitsNominationCommittee,willreviewits compositiononaregularbasisandwilldevelopasuccessionplanatthe appropriatetime. Health and Safety (H&S) risk: TheGroupandtheBoardhaveresponsibility forcertainH&Smatters,includingoversight overHMOplanningpermissionandlicensing. FailuretohaveappropriateH&Sproceduresand processesmayresultinregulatoryfinesand reputationalrisk. H&SisapriorityagendaitemforBoardmeetings.TheBoardhasreceived asummaryofitsresponsibilitiesundervariousscenariosgiventhechange inleasingmodelwhichnowincludesdirectleasingtooccupiers. AEWhasanestablishedaH&SCommitteeandreportsregularlyon H&SmatterstotheBoard.AEWalsonotifiestenantsregularlyoftheir responsibilitiesandcommunicatesanynon-complianceissuesidentified requestingevidenceofremediation. PropertymanagersareobligatedtoprovideregularreportingonH&S compliance.AEWundertakespotchecksofcompliance. Strategic report Principal risks and uncertainties—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     29 Strategic report Going concern and viability statement Going concern TheDirectors,atthetimeofapprovingthefinancial statements,arerequiredtoconsiderwhetherthey haveareasonableexpectationthattheCompanyand theGrouphaveadequateresourcestocontinuein operationalexistencefortheforeseeablefutureand donotconsidertheretobeanythreattotheirgoing concernstatus. AsdiscussedinNote26totheConsolidatedFinancial Statements,on16September2024shareholders approvedanewinvestmentpolicyforaManagedWind- DownoftheGroup’soperations.Partofthatstrategy wastosellenoughpropertiesthroughauctionsto repayallamountsoutstandingtoScottishWidows. On27November2024,theGrouprepaidtheloansand inDecember2024,theGrouppaidtheDeferredFees of£9.0millionandScottishWidowsreleaseditscharge overtheGroup’sassets. PursuanttotheManagedWind-Down,theGroupwill sellitsremainingportfolioofinvestmentproperties andwillnotmakeanyfurtherrealestateacquisitions. Nofurtherinvestmentwillbemadeunlesssuch expenditureisnecessarytoprotectorenhancean asset’snetrealisablevalueorinordertocomplywith statutoryobligations. CashflowprojectionsfortheGrouphavebeenprepared byAEWandagreedwiththeBoardwhichconsider: 1. TheCompanyanticipatesthattheportfoliosale processwillconcludeinthefourthquarterof2025. 2. Revenuewillcontinuetobecollectedontenanted propertiesheldbytheGroup. 3. Expensesareforecasttocontinuetobeincurred atthecurrentlevelforthoseservicesrequired forthecontinuedoperationoftheGroup.Notice periodshavebeenconsideredwherenecessaryand themajorityofoperationsareexpectedtoreduce significantlybythefirstquarterof2026,whenthe Groupexpectstofileitsannualreportandaccounts fortheyearended31August2025. 4. Nothinghasbeenbudgetedforanypotential settlementofeitherthepre-actionletterofclaim ortheFCAmatter,bothasdescribedbelow. Asofthedateofthesefinancialstatements,the Grouphasapproximately£8.8millionoffreecash. Forpurposesofthegoingconcernanalysisthe Directorshaveassumednilcashrentnetofproperty expensesuntilthepropertiesaresold.TheDirectors haveforecastexpendituresoverthenexttwelve monthsandaresatisfiedthatthecashonhandwill beadequatetocoverthoseexpenses.Intheevent thatexpendituresexceedthoseestimates,theGroup canselladditionalpropertiesatauctiontocoverany unforeseenexpenses. InOctober2023,theCompanyreceivedapre-action letterofclaimwhichassertsthattheCompany providedinformationtoinvestorswhichwasfalse, untrueand/ormisleadingandasaresultinvestors sufferedlosses.TheDirectorsarenotcurrentlyableto concludewhetherorwhenaformalclaimmaybeissued andifaclaimisissued,whatthequantumofsuchclaim maybe.Further,on7February2024,theCompany wasnotifiedbytheFCAofitscommencementofan investigationintotheCompany,coveringtheperiod from22September2020to3January2023.The CompanyandtheDirectorsarecooperatingwith theFCAinitsinvestigation.However,theyarenot abletoassessorquantifywhat,ifany,actionmay betaken.UntiltheDirectorshavebettervisibility intotheultimateexposureoftheseandanyother contingentliabilities,theywillnotbeabletosatisfy themselvesastowhatifanyamountswillberequired tosettlethesematters.WhentheDirectorsareable toestimatetherangeofexposure,theCompanymay returnanyestimatedsurpluscapitaltoinvestors, whilstmaintainingaprudentlevelofcashtowind downtheCompanyandGroupandconsideringany othereventualities. Asaresultofthethreatenedlitigation,theFCA investigationandtheDirectors’expectationforan orderlywind-downoftheCompany’soperations,the Directorsconsideritappropriatetoadoptabasisof accountingotherthanasagoingconcerninpreparing thefinancialstatements.Nomaterialadjustmentsto accountingpoliciesorthevaluationbasishavearisen asaresultofceasingtoapplythegoingconcernbasis. Approval of the Strategic Report TheStrategicReportwasapprovedbytheBoardof Directorsandsignedonitsbehalfby: Michael O’Donnell Chair 17October2025 30     HomeREITplc | AnnualReport | Fortheyearended31August2024 Governance 31 TheBoard 32 Directors’report 37 Corporategovernancestatement 42 ReportoftheAuditCommittee 48 ReportoftheManagementEngagementCommittee 49 ReportoftheNominationCommittee 52 Directors’remunerationreport 57 StatementofDirectors’responsibilities 58 IndependentAuditor’sreport  HomeREITplc | AnnualReport | Fortheyearended31August2024     31 AlltheDirectorsarenon-executiveandindependent oftheInvestmentManager&AIFM.TheDirectorsof theCompanywhowereintheofficeduringtheperiod (exceptasnoted)anduptothedateofsigningthe AnnualReportandAccountswere: MichaelO’Donnell,ChairoftheBoardandthe NominationCommittee(appointed18January2024) MichaelO’DonnellisChairoftheBoardsincehis appointmenton18January2024.HeisalsoaNon- ExecutiveDirectorandChairoftheRemuneration CommitteeofBigYellowGroupPLC,aFTSE250self- storagecompany,andChairofLighthouseFunerals,a privateequitybasedfuneraldirectorsbusiness.Michael hasover30yearsofexperience,morethanhalfofwhich havebeendedicatedtoNon-ExecutiveDirectorroles atarangeofcompaniesacrossthehealthcare,real estate,residential,educationandbusinessservices sectorsincludingHelicalplc(wherehealsochairedthe RemunerationCommittee),BMIHealthcare,Cygnet Healthcare,EslandCareandDentalPartners. Michaelhasextensiveexperienceincomplex restructuringsituationsincludinginsolvencyprocesses andhasheldseveralcreditorsideboardappointments. PriortorolesasaNon-ExecutiveDirector,hespent 11yearsinprivateequityatLGVCapital(asubsidiary ofLegal&General)andpriortothateightyearsin corporatefinanceatMorganGrenfellandBZW.Michael hasaBachelorofCommercedegreefromUniversity CollegeDublin. RodDay(appointed7June2024) RodDayisanIndependentNon-ExecutiveDirector oftheBoardandAuditCommitteeChair.Aqualified accountantwithanMBAfromLondonBusinessSchool, hehasover30yearsofbusinessexperiencehaving heldseniorrolesinstrategyandfinanceforanumber ofleadinginternationalorganisations.Inanexecutive capacityhiscareerhighlightsincludeworkingforIron MountainInc(2008-2016),wherehelatterlyactedas GlobalCFOleadingstrategicM&Aandwasinstrumental initsconversiontoaREIT;AOLEurope(2001-2008), whereheactedasCFOinhisfinaltwoyearsatthe business,andatKingfisherplcinvariousstrategyand businessplanningroles(1994-2001).Healsoworkedfor anumberofyearsatOC&Cstrategyconsultants. Since2017Rodhasundertakenaseriesofbusiness advisoryandboardroles.HehasbeeninterimCFOand BoardmemberatanumberofcompaniesincludingRWS plc,aUKlistedtranslationcompany;CobhamGroup, theUK’slargestaerospaceanddefencecompanywhere hewasfinanceleadonvariousdivestitures;andVShips, aworldleadingshippingsuppliescompany.Hehasalso actedasasenioradvisertoCerberusCapital. PeterWilliams,SeniorIndependentDirector andChairoftheManagementExecutive (appointed2April2024) PeterWilliamsistheSeniorIndependentNon- ExecutiveDirectoroftheBoardandManagement EngagementCommitteeChair.AqualifiedChartered Accountant,hehasover30yearsofBoardlevel experienceachievedinbothanexecutiveandnon- executivecapacity.PeteriscurrentlyChairmanof ACSClothing,thesustainablefashionenabler,a non-executivedirectoratSGSGroup,theownerof shoppingandleisurecentresatLakeside,Watford, NottinghamandBraehead;andisatrusteeofboth SomersetHouseinLondonandtheArchitectural HeritageFund. Duringhiscareerhehasbeeninvolvedinsignificant corporateactivityinrelationtobuyingandselling companies,IPOsandrestructuring.Peter’sexperience incapitalreconstructionsincludethoseofJJB,Blacks, EMIandJaegerworkingwithbothequityshareholders anddebtproviders.Hehasledorplayedaleadingrole infiveIPOsincludingSelfridges(towhichhewasChief FinancialOfficerandsubsequentlyChiefExecutive), Cineworld,boohoo,Domino’sinTurkey,andMister Spex.Hisextensivenon-executiveexperienceincludes BoardrolesatRightmove,Superdry,Cineworld,Gcap Media,CapitalRadio,U+I,SophiaWebster,Sportech, Silverstone,ErnoLaszloandMintoA/S. Governance The Board 32     HomeREITplc | AnnualReport | Fortheyearended31August2024 TheDirectorspresenttheirreportfortheyearended 31August2024.InaccordancewiththeCompaniesAct 2006(the“Act”),theListingRulesandtheDisclosure GuidanceandTransparencyRules.TheCorporate GovernanceStatement,Directors’Remuneration Report,ReportsfromtheAuditCommittee, NominationCommitteeandManagementEngagement Committee,andtheStatementofDirectors’ Responsibilitiesshouldbereadinconjunctionwithone another,andtheStrategicReport.Aspermittedby legislation,someofthemattersnormallyincludedin theDirectors’Reporthaveinsteadbeenincludedinthe StrategicReport,astheBoardconsidersthemtobeof strategicimportance.Theseincludethebelow: • Descriptionofthebusinessmodelcanbefound beginningonpage19. • Likelyfuturedevelopmentsandoutlookare containedwithintheChair’sStatementonpages 8and9. • ImportanteventsaffectingtheGroupwhichhave occurredsincetheendofthefinancialyearare setoutonpages14to15andinNote26tothe ConsolidatedFinancialStatements. Directors TheDirectorsinofficeatthedateofthisReportareas shownonpage31. TheDirectorsoftheCompanywhowereintheoffice duringtheperiodanduptothedateofsigningthe AnnualReportandfinancialstatementswere: Appointed Resigned MichaelO’Donnell 18January2024 – PeterWilliams 2April2024 – RodDay 7June2024 – PeterCardwell – 14January2025 LynneFennah – 14January2025 SimonMoore – 14January2025 MarleneWood – 14January2025 DetailsoftheDirectors’termsofappointmentcanbe foundintheDirectors’RemunerationReport. Corporate governance TheCorporateGovernanceStatementonpages37to 41formspartofthisDirectors’Report. Dividends Therewerenodividendsdeclaredorpaidinrespect oftheyearended31August2024(2023:£10,910,000). Issue of Shares NonewShareswereissuedduringtheyear. Purchase of Shares AttheAGMheldon27January2022,theDirectors weregrantedauthoritytopurchaseupto14.99%ofthe Group’sordinarySharecapitalinissueatthedateon whichtheNoticeofAGMwaspublished,amountingto 84,194,540Shares.Theauthoritytopurchaseexpired andtheCompanydidnotpurchaseanyofitsShares duringtheyearpursuanttothisauthority,nordidany nomineeorthird-partywiththeGroup’sassistance acquireanySharesonbehalfoftheCompany.No Shareswereheldintreasuryduringtheyearorat theyearend. AttheAGMheldon20February2025,theDirectors weregrantedauthoritytopurchaseupto14.99%of theGroup’sordinarySharecapitalinissueatthedate onwhichtheNoticeofAGMwaspublished,amounting to118,506,512Shares.Thisauthoritywillexpireatthe conclusionoftheAGMheldin2026. SharesboughtbackbytheCompanymaybeheld intreasury,fromwheretheycouldbereissuedator abovetheprevailingnetassetvaluequicklyandcost effectively.ThisprovidestheCompanywithadditional flexibilityinthemanagementofitscapitalbase. AsatthedateoftheAnnualReport,theCompany didnotpurchaseanyofitsSharespursuanttothis authority,nordidanynomineeorthird-partywiththe Group’sassistanceacquireanySharesonbehalfof theCompany. Current share capital Asat31August2024,andatthedateofthisReport, theGroup’sissuedsharecapitalcomprised790,570,465 Shares,eachof1pnominalvalue.Atgeneralmeetings oftheGroup,ordinaryshareholdersareentitledto onevoteonashowofhandsand,onapoll,toonevote foreveryShareheld.Asat31August2024,andatthe dateofthisReport,thetotalvotingrightsintheGroup were790,570,465. Governance Directors’ report  HomeREITplc | AnnualReport | Fortheyearended31August2024     33 Significantshareholders Asat31August2024,thetop5shareholdersintheCompanywere: ShareholderName NumberofShares %oftotal votingrights M&GInvestmentManagementLimited 124,703,853 15.77 BlackRockInvestmentManagement(UK)Limited 75,916,498 9.60 LiontrustAssetManagementPLC 45,273,414 5.73 Sarasin&PartnersLLP 41,534,905 5.25 VanguardGroupInc. 35,573,131 4.50 Since31August2024anduptothedateofthisReport,theCompanyhasbeeninformedofthefollowingnotifiable shareholdingsinthesharecapitaloftheCompany: ShareholderName Shareholdingondate ofnotification NotificationDate %oftotal votingrights WeissAssetManagementLP 108,717,069 20August2025 13.75 WeissAssetManagementLP 103,480,469 8August2025 13.09 WeissAssetManagementLP 101,456,469 17June2025 12.83 WeissAssetManagementLP 87,039,599 13June2025 11.01 WeissAssetManagementLP 83,740,529 19May2025 10.59 WeissAssetManagementLP 76,013,616 15May2025 9.62 ACTFinanceLimited 50,165,517 15April2025 6.34 LiontrustAssetManagementPlc 37,840,019 25February2025 4.78 Sarasin&PartnersLLP 36,809,090 31January2025 4.65 Shareholder rights Thefollowinginformationisdisclosedinaccordance withTheLargeandMediumsizedCompaniesand Groups(AccountsandReports)Regulations2008 andDTR7.2.6oftheFCA’sDisclosureGuidanceand TransparencyRules: • theGroup’scapitalstructureandvotingrightsand detailsofthesubstantialshareholdersintheGroup aresetoutinthepreviouspageofthissection; • anamendmenttotheCompany’sarticlesof association(the“Articles”)andthegivingof powerstoissueorbuybacktheCompany’sShares requiresanappropriateresolutiontobepassed byshareholders.Proposalstograntpowerstothe BoardtoissueandbuybackShareswillbesetout inthenoticeoftheGeneralMeetingatwhichthese accountswillbelaidinfrontofshareholders;and • therearenorestrictionsconcerningthetransfer ofsecuritiesintheCompany;norestrictionson votingrights;nospecialrightswithregardtocontrol attachedtosecurities;noagreementsbetween holdersofsecuritiesthatmayrestricttheirtransfer orvotingrights,asknowntotheCompany;andno agreementswhichtheGroupispartytothatmight affectitscontrolfollowingasuccessfultakeoverbid. Requirements of the Listing Rules ListingRule6.6.1requirestheCompanytoinclude specifiedinformationinasingleidentifiablesectionof theAnnualReportoracrossreferencetableindicating wheretheinformationissetout.Theinformation requiredunderListingRule6.6.1(6)inrelationto allotmentsofSharesissetoutonpage32.The Directorsconfirmthatnoadditionaldisclosuresare requiredinrelationtoListingRule6.6.1. Independentprofessionaladvice,insurance and indemnity Detailsregardingindependentprofessionaladvice, insuranceandindemnityaresetoutintheCorporate GovernanceStatementbeginningonpage37. Governance Directors’ report—continued 34     HomeREITplc | AnnualReport | Fortheyearended31August2024 SECR InaccordancewiththerequirementsoftheStreamlined EnergyandCarbonReporting(SECR)framework, implementedthroughTheCompanies(Directors’ Report)andLimitedLiabilityPartnerships(Energy andCarbonReport)Regulations2018(SI2018/1155), quotedcompaniesincorporatedintheUKarerequired toreportannualUKenergyuseandassociated greenhousegas(GHG)emissions,including: • Scope1(directemissionsfromownedor controlledsources) • Scope2(indirectemissionsfromthegeneration ofpurchasedelectricity,heat,orsteam) • Anintensityratio • Adescriptionofenergyefficiencymeasuresundertaken However,underRegulation15(7)(b)oftheSECR Regulations,disclosureisnotrequiredwhereitisnot practicaltoobtainthenecessaryinformation,provided thatthereasonsfornon-disclosureareclearlystated. Fortheyearended31August2024,HomeREITplchas determinedthatitwasnotpracticabletoprovideGHG emissionsorenergyusagedataforthefollowingreasons: • TheGroup’spropertyportfolio,comprising2,473 residentialassetsatthebeginningofthereporting period,washistoricallyoperatedunderlong-term FullRepairingandInsuring(FRI)leasestothird-party housingproviders.Underthisleasingstructure, operationalcontrolandresponsibilityforenergy usage,maintenance,andtenantmanagement residedentirelywiththetenants. • HomeREITplc,aslandlord,hadnolegalor operationalrighttomonitororcollectenergy consumptiondatafromtenants.Inpractice,nodata onenergyusage,fueltypes,orutilityaccountswas receivedduringtheleasetermsoruponsurrender. • DuringFY2024,asubstantialnumberofleaseswere terminatedduetotenantnon-performance,with theGroupregainingcontrolofasignificantnumber ofproperties.However: – 1,098propertiesweresoldshortlyafter repossession(typicallywithin30–45days),with nointerveningrefurbishmentorenergyusageby theGroup. – Theremaining1,375propertieswereretained butacquiredunderirregularandnon-standard conditions,withoutoperationalhistoriesor energyrecords. • Nocentralisedoperations,vehiclefleet,or corporateofficesunderGroupcontrolexisted duringtheperiod,furtherlimitingtherelevanceof Scope1orScope2emissions. WhilsttheGroupthereforemakesuseofthe exemptionprovidedunderRegulation15(7)(b)wehave calculatedestimatedenergyusagebasedonindustry benchmarkingdatabasedonthearchetypesofthe propertiestoprovideanillustrativeviewontheenergy andcarbonusage. IFRS Additionally,theInternationalSustainabilityStandards Board(ISSB)issuedIFRSS1(GeneralRequirements forDisclosureofSustainability-relatedFinancial Information)andIFRSS2(Climate-relatedDisclosures) withaneffectivedateof1January2024.However, thesestandardsarenotyetmandatedinthe UnitedKingdom. TheUKGovernment,viatheDepartmentforBusiness andTradeandtheFinancialReportingCouncil(FRC),is currentlyundertakingaprocesstoendorsetheISSB standardsforUKusethroughthedevelopmentofUK SustainabilityDisclosureStandards(UKSDS).Asatthe dateofthisreport,norequirementtoadoptIFRSS1or S2hasbeenenactedintoUKregulation. Accordingly,HomeREITplcisnotrequiredtoreport againstIFRSS1orS2fortheyearended31August2024. TheGroupcontinuestomonitordevelopmentsin UKsustainabilityreportingrequirementsandwill assessfutureapplicabilityoftheISSBstandards onceregulatoryguidanceandadoptiontimelines arefinalised. Investment Manager & AIFM AlvariumFMwastheCompany’sAIFMuntil 21August2023andAHRAwastheCompany’s InvestmentAdviseruntil30June2023. On22May2023,AEWwasappointedasProperty AdviserfortheTransitionPeriodandsubsequently on21August2023,onexpiryoftheTransitionPeriod asAIFMandInvestmentManager.TheTransition Periodlastedfromthedateofappointmentuntilthe CommencementofPhase1.Phase1continuesfortwo yearsfromthedateofcommencement,atwhichtime Phase2commences.Phase1commencedwhenthe followingoccurred: 1. AlvariumFMandAHRAceasingtoactfortheGroup; 2. FCAapprovaloftheappointmentofAEWasAIFMfor theCompany;and 3. TheadoptionoftheAmendedInvestmentPolicy. AEWisregulatedintheconductofinvestmentbusiness bytheFCAandis,forthepurposesoftheAIFMD andtherulesoftheFCA,a‘fullscope’UKalternative investmentfundmanagerwithaPart4Apermissionfor managingAIFs,suchastheCompany. Governance Directors’ report—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     35 DuringtheTransitionPeriod,AEWwaspaid£3,000,000 perannum.AEWispaidanannualfeeinPhase1: a) afixedbaseassetmanagementandAIFMfeeof £3millionperannum(increasingannuallyinlinewith inflationbyamaximumof5percent.perannum); b) avariablemanagementfeefordisposalsof£422per bedforeverypropertysold;and c) avariablemanagementfeetoincentiviserent collectionof10%ofallrentcollected. Theaboveissubjecttoanaggregatecapof£10million fortheInitialPeriod(theperiodto22August2025). FollowingtheInitialPeriod,AEWwasentitledtoan investmentmanagementfeeequalto0.75%ofNAV perannum,subjecttoaminimumfeeof£3.0millionper annum(risingwithinflation).On22August2025,the CompanyandAEWagreedarevisedfeestructurewith immediateeffect,asfollows: • Afeeof£167,000permonthtoexpirethreemonths afterthedateonwhichtheCompanyholdsfewer than10properties. • Thereafter,£120,000permonthforaperiodof threemonths. • Thereafter,£42,000permonthuntilterminationof therevisedIMA. • Subjecttoanannualcapof£1million,anadditional 10%ofgrossrentcollectedfromassetsownedby theCompanyand10%ofrentarrearscollected, includingthoserecoveredthroughliquidations. TherevisedIMAmaybeterminatedonsix months’writtennoticeandoccurnoearlierthan 21August2026.TherevisedIMAincludesother immaterialamendments. Other service providers Detailsofthetermsofengagementbetweenthe Companyanditsotherkeyserviceproviders,such astheAdministrator,theCompanySecretary,the DepositaryandtheRegistrar,aresetoutinthe ProspectusissuedbytheGroupon2September2021. SmithSquarePartnerswereappointedasfinancial adviserfrom13February2023until24November2023 onthefollowingterms: a) Aworkfeeof£185,000permonth; b) IneventofanofferfortheCompany,atransaction feeof1.1%ofthevalueoftheoffersubjecttoa minimumof£2.5m; c) Atransactionfeeof1.1%ofthevalueofeach transactionsubjecttoanaggregateminimumof £2.5mifamajorityoftheCompany’sassetsaresold; d) Afeeinrespectofappointmentofanewinvestment adviserof£750,000;and e) Afeeoncompletionofrefinancingormaterial amendmenttotheGroupindebtedness,afee equalto75basispointsnewdebtcapitalraisedor refinancedsubjecttoaminimum£750,000. Feesb)andc)aboveremainpayableforaperiodof 24monthsfollowingterminationwhichexpireson 24November2025. LiberumCapitalLimited(nowPanmureLiberum Limited“Liberum”)wasappointedcorporatebroker andCapitalMarketsAdvisor(“CMA”)on5July2023. Liberumwillinitiallybepaidanannualcorporatebroking feeof£150,000untiltheoneyearanniversaryofthe Companybeingreadmittedtotradingonthemain marketoftheLondonStockExchange(‘readmission’). Afterthatdate,Liberumwillbepaidanannualretainer of£100,000,withadditionalfeesofupto£50,000 dependingoncertaincriteria.Liberumwasinitiallypaid aCMAfeeof£200,000until31December2023.When Re-admissiondidnotoccurby31December2023,the annualretainerwasincreasedto£240,000. JLLwasappointedIndependentValuertotheGroup on18July2023.Thebelowfeesarepayableinrespect ofvaluations: • Fortheyearended31August2022£900,000with initialinternalinspectionfeesof£25,000and externalinspectionfeesof£100perproperty; • Fortheperiodended28February2023£75,000; • Fortheyearended31August2023£50,000; • Fortheperiodended29February2024£100,000 1 ; • Fortheyearended31August2024£150,000 1 ; • Fortheperiodended28February2025£60,000;and • Fortheperiodended31August2025£75,000. 1. As varied in an updated fee letter dated 26 July 2024. Governance Directors’ report—continued 36     HomeREITplc | AnnualReport | Fortheyearended31August2024 Continuing appointment of the Investment Manager TheBoardkeepstheperformanceoftheInvestment Managerundercontinualreview.TheManagement EngagementCommittee(“MEC”),comprisingall Directors,conductsanannualreviewoftheInvestment Manager’sperformanceandmakesarecommendation totheBoardaboutitscontinuingappointment. Asdetailedabove,AEWwasappointedInvestment ManagerandAIFMon21August2023.TheMEC havereviewedtheperformanceofAEWsinceits appointmentandtheDirectorsbelievethatthe continuingappointmentofAEW,ontheterms agreed,isinthebestinterestsoftheGroupandits shareholdersasawhole. FurtherdetailsaresetoutintheReportfromthe ManagementEngagementCommitteeonpage48. Financial risk management InformationabouttheGroup’sfinancialrisk managementobjectivesandpoliciesissetoutin Note14totheConsolidatedFinancialStatements. Auditor TheDirectorsconfirmthat,sofarastheyareeach aware,thereisnorelevantauditinformationofwhich theCompany’sAuditorisunaware;andeachDirector hastakenallthestepsthatoughttohavebeentaken asaDirectortomakethemselvesawareofanyrelevant auditinformationandtoestablishthattheCompany’s Auditor,BDO,isawareofsuchinformation. BDOLLPhasexpresseditswillingnesstocontinue inofficeastheCompany’sAuditorandresolutions foritsre-appointmentandtoauthorisetheAudit Committeetodetermineitsremunerationwillbeputto shareholdersataGeneralMeetingoftheCompany. ByorderoftheBoard Michael O’Donnell Chair 17October2025 Governance Directors’ report—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     37 ThisCorporateGovernanceStatementformspartof theDirectors’Report. Introduction InthisCorporateGovernancestatement,theCompany reportsonitscompliancewiththeAICCode,setsout howtheBoardanditsCommitteeshaveoperated duringtheyearanddescribeshowtheBoardexercises effectivestewardshipovertheCompany’sactivitiesin theinterestsofshareholders.TheBoardisaccountable toshareholdersforthegovernanceoftheCompany’s affairsandiscommittedtomaintainingthehighest standardofcorporategovernanceforthelong-term successoftheCompany. TheCompanyreviewsitsstandardsofgovernance againsttheprinciplesandrecommendationsoftheAIC Code,aspublishedin2019.TheBoardconsidersthat reportingagainsttheprinciplesandrecommendations oftheAICCodeprovidesbetterinformationto shareholdersasitaddressesalltheprinciplessetout intheUKCodeofCorporateGovernance(the“UK Code”),aswellassettingoutadditionalprinciples andrecommendationsonissuesthatareofspecific relevancetoinvestmentcompaniesandisendorsedby theFinancialReportingCouncil(“FRC”).Thetermsof theFRC’sendorsementmeanthatAICmemberswho reportagainsttheAICCodefullymeettheirobligations undertheUKCodeandtherelateddisclosure requirementscontainedintheListingRulesofthe FCA.AcopyoftheAICCodecanbefoundatwww. theaic.co.uk.AcopyoftheUKCodecanbeobtainedat www.frc.org.uk. Statement of compliance PursuanttotheListingRulesoftheFCA,theCompany isrequiredtoprovideshareholderswithastatementon howthemainandsupportingprinciplessetoutinthe AICCodehavebeenappliedandwhethertheCompany hascompliedwiththeprovisionsoftheAICCode.The Boardrecognisestheimportanceofastrongcorporate governancecultureandhasestablishedaframework forcorporategovernancewhichitconsiderstobe appropriatetothebusinessoftheCompanyasaREIT andtheCompanyasawhole. TheUKCodeincludesprovisionsrelatingto: • theroleofthechiefexecutive; • executivedirectors’remuneration;and • theneedforaninternalauditfunction. TheBoardconsiderstheseprovisionsarenotrelevant totheCompany,beinganexternallymanaged investmentcompany.TheCompanyhasthereforenot reportedfurtherinrespectoftheseprovisions. TheBoardhasreviewedtheprinciplesand recommendationsoftheAICCodeandconsiders thatithascompliedthroughouttheyear,except thattheChairoftheBoardisamemberoftheAudit Committee,contrarytoProvision29oftheAICCode. TheBoardbelievesitisappropriatefortheChairof theCompanytobeamemberoftheAuditCommittee asboththecurrentandpreviousChairoftheBoard (MichaelO’Donnellsince18January2024andLynne Fennahrespectively)haverecentandrelevantfinancial experienceandprovideavaluablecontributionto theCommittee’soperationsanditsinteractionwith theBoard.WiththeDirectorsinofficeatIPOhaving steppeddownonpublicationofthe2023annualreport andaccounts,thecurrentChair’sinvolvementinthe operationsoftheCommitteewillprovideessential continuityandisexpectedtocontinuefortheforthe foreseeablefuture. Giventhematerialeventsthathaveoccurredduring theyear,theBoardhasconsidereditscompliancewith principlesandrecommendationsoftheAICCode.The Boardconsidersthatitconsistentlymetthelevelof oversightandgovernancethatwasrequiredbytheAIC Code.TheBoardhassubstantialrealestate,financial, commercialandsectorexperienceandhasestablished appropriatecommittees(includingAuditCommittee andManagementEngagementCommittee),which met,andcontinuetomeet,onaregularbasis.As anexternallymanagedinvestmentcompany,the Companydelegateskeyexecutivefunctionstothird- partyserviceproviders.TheCompanyandtheBoard isreliantupontheperformanceofthesethird-party serviceproviderstocarryouttheirobligationsto theCompanyinaccordancewiththetermsoftheir appointment.Furtherinformationisprovidedbelowin theRiskManagementandInternalControlsectionand furtherdetailontheCompany’sgovernanceisprovided inAppendix2. The Board UndertheleadershipoftheChair,theBoardis collectivelyresponsiblefortheeffectivestewardshipof theCompany’saffairsandthelong-termsuccessofthe Group,generatingvalueforshareholders.Itestablishes thepurpose,valuesandstrategicaimsoftheCompany andsatisfiesitselfthattheseanditsculturearealigned. TheBoardensuresthatthenecessaryresourcesarein placefortheCompanytomeetitsobjectivesandfulfil itsobligationstoshareholderswithinaframeworkof highstandardsofcorporategovernanceandeffective internalcontrols.TheDirectorsarerequiredtoactwith integrity,leadbyexampleandpromotethisculture withintheCompany. Governance Corporate governance statement 38     HomeREITplc | AnnualReport | Fortheyearended31August2024 TheDirectorspossessawiderangeofbusinessand financialexpertiserelevanttothedirectionofthe Groupandconsiderthattheycommitsufficienttime totheaffairsoftheGroup.AllDirectorsactinanon- executivecapacity. BriefbiographicaldetailsoftheDirectors,including detailsoftheirsignificantcommitments,canbefound onpage31. Chair LynneFennahwastheChairoftheCompanyuntil 18January2024.TheChairleadstheBoardandis responsibleforitsoveralleffectivenessindirecting theCompany.TheChairdemonstratesobjective judgement,promotesacultureofopennessand debate,andfacilitateseffectivecontributionsbyall Directors.InliaisonwiththeCompanySecretary,the ChairensuresthattheDirectorsreceiveaccurate, timelyandclearinformationtotheextentpossiblewith thelimitationontheaccuracyandcompletenessofthe informationprovidedbytheInvestmentManager. On18January2024,MichaelO’Donnellwasappointed totheBoardasanon-executiveDirectorandtheChair oftheBoard.MichaelO’Donnellwasindependentofthe InvestmentManageratthetimeofhisappointmentand isdeemedbytheirfellowBoardmemberstocontinue tobeindependentincharacterandjudgementandto havenoconflictingrelationships. TheChairconsidershimselftohavesufficienttime tocommittotheCompany’saffairs.Theroleand responsibilitiesoftheChairoftheBoardareclearly definedandsetoutinwriting,acopyofwhichis availableontheCompany’swebsite. SeniorIndependentDirector SimonMoorewastheSeniorIndependentDirector until2April2024whenPeterWilliamswasappointedas anon-executiveDirectorandtheSeniorIndependent DirectoroftheCompany. TheSeniorIndependentDirectorprovidesasounding boardfortheChairandservesasanintermediaryfor theotherDirectorsandshareholders.TheSenior IndependentDirectoralsoprovidesachannelforany shareholderconcernsregardingtheChairandtakes theleadintheannualevaluationoftheChairbythe otherDirectors.Theroleandresponsibilitiesofthe SeniorIndependentDirectorareclearlydefinedand setoutinwriting,acopyofwhichisavailableonthe Company’swebsite. MattersreservedfortheBoard TheCompany’sinvestmentpolicyandstrategyare determinedbytheBoard.TheBoardisresponsible forinvestmentdecisions,otherthantotheextent delegatedtoAEW,andtheappointment,supervision andmonitoringoftheGroup’skeyserviceproviders. TheBoardestablishestheCompany’sborrowingpolicy, dividendpolicy,approvespublicdocumentssuchasthe annualandinterimreportsandfinancialstatements, andcorporategovernancematters.Aformalschedule ofmattersreservedfordecisionbytheBoardhasbeen adoptedandisavailableontheCompany’swebsite, withasummaryinAppendix2onpages112to114. Independentprofessionaladvice,insurance andindemnity TheBoardhasformalisedarrangementsunderwhich theDirectors,inthefurtheranceoftheirduties,may seekindependentprofessionaladviceattheexpenseof theCompany.TheCompanyalsomaintainedDirectors’ andOfficers’liabilityinsuranceduringtheyear.The ArticlesprovidetheDirectorsoftheCompany,subject totheprovisionsofUKlegislation,withanindemnity inrespectofliabilitieswhichtheymaysustainorincur inconnectionwiththeirappointment.Apartfrom this,therearenoqualifyingthird-partyindemnity provisionsinforce. OtherthantheirlettersofappointmentasDirectors, noneoftheDirectorshasacontractofservicewith theCompanynorhastherebeenanyothercontractor arrangementbetweentheCompanyandanyDirector atanytimeduringtheyear. TheBoardhasagreedaprocedurefortheinduction andtrainingofnewBoardappointeesandtraining requirementsaredealtwithasrequired. Informationregardingtheannualevaluationofthe Board,itsCommittees,theindividualDirectorsandthe Chair;diversitypolicy;compositionoftheBoard;tenure oftheDirectors;andtheDirectors’re-electionisset outintheReportfromtheNominationCommitteeon pages49to51. Governance Corporate governance statement—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     39 Board Committees Duringtheyear,theCompanyhadthreeCommittees inoperation,namely,theAuditCommittee,the ManagementEngagementCommitteeandthe NominationCommittee.GiventhesizeoftheBoard,it isnotconsideredappropriatetoestablishaseparate remunerationcommittee.Thefunctionsthatwould normallybecarriedoutbythiscommitteearedealtwith bythefullBoard. ThetermsofreferenceoftheCommitteesareavailable ontheCompany’swebsite. AuditCommittee TheGrouphasestablishedanAuditCommitteewhich ischairedbyRodDay(since14January2025)and consistsofallDirectors.TheBoardconsidersthatthe membersoftheAuditCommitteehaverecentand relevantfinancialexperienceandtheCommitteeasa wholehascompetencerelevanttothesectorinwhich theCompanyoperates.TheAuditCommitteeincludes individualswithsubstantialexperienceofthefinancial mattersoflistedcompaniesandthepropertysector.It isconsideredappropriatefortheChairoftheCompany tobeamemberoftheAuditCommittee,inviewofthe DirectorsinofficeatIPOresigningonpublicationofthe 2023annualreport,hisinvolvementintheoperations oftheAuditCommitteeprovidesessentialoperational continuitybetweenthecurrentandtherevised compositionoftheAuditCommittee. ThereportoftheAuditCommitteeissetouton pages42to47. ManagementEngagementCommittee TheManagementEngagementCommitteecomprises allDirectorsandischairedbyPeterWilliams.The Committeemetduringtheperiodunderreviewto considertheperformanceoftheInvestmentManager. Inaddition,theManagementEngagementCommittee reviewstheperformance,termsofappointmentand feespayabletotheotherkeyserviceprovidersofthe CompanyandmakesrecommendationstotheBoard regardingtheircontinuingappointment. ThereportoftheManagementEngagement Committeeissetoutonpage48. NominationCommittee TheCompanyhasestablishedaNomination CommitteewhichischairedbyMichaelO’Donnell. TheCommitteereviewstheBoard’ssuccessionplan andidentifiesandnominatescandidatesfortheoffice ofdirectoroftheCompany.Italsoreviewstheresults oftheannualevaluationprocessoftheBoard,its Committees,theDirectorsandtheChair,andmakes recommendationstotheBoardinrespectofthe election/re-electionoftheDirectors. ThereportoftheNominationCommitteeisincluded onpages49to51. Meetingsheldduringtheyear TheCompanyhasfourfullBoardmeetingsayear. Inaddition,currently,theBoardismeetingevery month.Additionalmeetingsarearrangedasnecessary. AteachBoardmeeting,theDirectorsfollowaformal agendawhichiscirculatedinadvancebytheCompany Secretary.TheInvestmentManager,theAdministrator andtheCompanySecretaryregularlyprovidethe Boardwithfinancialinformation,includingamonthly cashflowforecast,togetherwithbriefingnotesand papersinrelationtothedisposalofinvestments,health &safetycomplianceandtenantandassetmonitoring andupdates,changesintheCompany’seconomic andfinancialenvironment,statutoryandregulatory changesandcorporategovernancebestpractice. ThenumberofscheduledBoard,AuditCommittee, ManagementEngagementCommitteeandNomination Committeemeetingsthateachdirectorwasentitled toattendduringtheyearended31August2024and theattendanceoftheindividualDirectorsinoffice attheyear-endisshownbelow(originaldirectors notedby‘’): Board Audit Committee Management Engagement Committee Nomination Committee Numberofmeetingsattended(entitledtoattend) LynneFennah 10(11) 2(2) 2(2) 1(1) PeterCardwell 9(9) 1(1) 1(1) 1(1) SimonMoore 11(11) 2(2) 2(2) 1(1) MarleneWood 11(11) 2(2) 2(2) 1(1) MichaelO’Donnell 6(6) 2(2) 1(1) –(1) PeterWilliams 2(2) 2(2) 1(1) –(1) RodDay 1(1) 1(1) –(1) –(1) Governance Corporate governance statement—continued 40     HomeREITplc | AnnualReport | Fortheyearended31August2024 ConflictsofInterest ItistheresponsibilityofeachindividualDirectorto avoidanunauthorisedconflictarising.Directorsmust requestauthorisationfromtheBoardassoonasthey becomeawareofthepossibilityofaninterestthat conflicts,ormightpossiblyconflict,withtheinterests oftheCompany(a“situationalconflict”).TheArticles authorisetheBoardtoapprovesuchsituations,where deemedappropriate. TheBoardisresponsibleforconsideringDirectors’ requestsforauthorisationofconflictsandfordeciding whetherornotthesituationalconflictshouldbe authorised.Thefactorstobeconsideredwillinclude: whetherthesituationalconflictcouldpreventthe Directorfromproperlyperformingtheirduties; whetherithas,orcouldhave,anyimpactonthe Company;andwhetheritcouldberegardedaslikely toaffectthejudgementand/oractionsoftheDirector inquestion.WhentheBoardisdecidingwhetherto authoriseasituationalconflict,onlyDirectorswho havenointerestinthematterbeingconsidered areabletotaketherelevantdecision,andintaking thedecision,theDirectorsmustactinawaythey consider,ingoodfaith,willbemostlikelytopromote theCompany’ssuccess.TheBoardareabletoimpose limitsorconditionswhengivingauthorisationifthey thinkthisisappropriateinthecircumstances.The Directorsmustalsocomplywiththestatutoryrules requiringtheDirectorstodeclareanyinterestinan actualorproposedtransactionorarrangementwith theCompany. TheCompanySecretarymaintainstheRegisterof Directors’ConflictsofInterestswhichisreviewed ateachBoardmeeting,toensurethatauthorised conflictsremainappropriate.TheDirectorsadvise theCompanySecretaryandtheBoardassoonasthey becomeawareofanyconflictsofinterest.Directors whohaveconflictsofinterestdonottakepartin discussionswhichrelatetoanyoftheirconflicts. Risk management and internal control review TheDirectorsacknowledgethattheyhaveoverall responsibilityfortheCompany’sriskmanagement andinternalcontrolsystemsandforreviewingtheir effectiveness. Anongoingprocess,inaccordancewiththeFRC GuidanceonRiskManagement,InternalControl andRelatedFinancialandBusinessReporting,has beenimplementedforidentifying,evaluatingand managingtheprincipalandemergingrisksfacedbythe CompanyandtheGroup.Thisprocesshasbeeninplace throughouttheyearended31August2024andupto thedatethefinancialstatementswereapprovedand isregularlyreviewedbytheBoard,throughtheAudit CommitteeifscheduledorataregularBoardmeeting. Keyproceduresestablishedwithaviewtoproviding effectivefinancialcontrolhavealsobeeninplacefor theyearunderreviewanduptothedatethefinancial statementswereapproved. Theriskmanagementprocessandsystemsofinternal controlaredesignedtomanageratherthaneliminate theriskoffailuretoachievetheCompany’sinvestment objective.Itshouldberecognisedthatsuchsystems canonlyprovidereasonable,notabsolute,assurance againstmaterialmisstatementorloss. TheCompanyhascontractuallydelegatedthe managementoftheinvestmentportfolio,the registrationservices,administrationservicesandother servicestothirdpartyserviceprovidersandreliance isthereforeplacedontheinternalcontrolsofthose serviceproviders. Theinternalfinancialcontrolsystemsaimtoensure themaintenanceofproperaccountingrecords,the reliabilityofthefinancialinformationuponwhich businessdecisionsaretaken,reportsarepublishedand theassetsoftheCompanyaresafeguarded. Thekeyproceduresincludereviewofcashmovements andacashflowforecast,monitoringofperformance oftheCompanyandAEWatquarterlyBoardmeetings, segregationoftheadministrativefunctionfrom investmentmanagement,maintenanceofappropriate insuranceandadherencetophysicalandcomputer securityprocedures.Theinternalcontrolsatthe serviceprovidersarereviewedbytheAuditCommittee. TheBoardhasundertakenareviewoftheeffectiveness oftheCompany’sriskmanagementandinternalcontrol systemsastheyhaveoperatedovertheyearandupto thedateoftheapprovaloftheAnnualReport. Governance Corporate governance statement—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     41 Duetoinformationthatcametolightduringtheperiod ended31August2023whichwasincontradictionto reportingpreviouslyprovidedtotheBoardbyAHRA andAlvariumFMuptothedateoftheirtermination, togetherwithlowrentcollectionandfurtherevidence ofmaterialinformationbeingwithheldfromtheBoard, theBoardhasreconsidereditsriskmanagement framework,internalcontrolsystems,proceduresand processes.Asaresultofthatsignificantandmaterial informationthefollowingamendmentstotherisk managementframeworkandinternalcontrolssystems havebeenmade: • Rigorousselectionprocessfortheappointment ofanewInvestmentManagerandAIFM; • InternalinspectionofpropertiesbyVibrant,JLL andotherthirdparties; • ProvisionofacontactaddressfortheChairon theGroup’swebsiteandrequestforkeyservice providerstoproviderelevantemployeescontact detailsofChairtoraiseconcernswiththeGroup’s whistleblowingpolicyupdatedaccordingly; • Health&SafetyconsiderationwithAEWhaving establishedaHealth&SafetyCommitteewhich regularlyreportstotheBoard.Health&safety isastandardpriorityitemontheBoardagenda’s recognisingthenewleasingmodelsuchthatleases arenolongerlimitedtoFRIleasesandtheGroup havingleases(ASTs)withoccupiersduringthe StabilisationPeriodandManagedWind-Down;and • 13-weekand15-monthcashflowforecastsare maintainedandupdatedregularlybyAEWand reviewedwiththeBoard. Robustriskassessmentsandreviewsofinternal controlsareundertakenregularlyinthecontextof theCompany’soverallinvestmentobjective.The Board,throughtheAuditCommittee,hascategorised riskmanagementcontrolsunderthefollowingkey headings:investmentobjective;propertyleasing andoperations;realestatesector;risksrelating toShares;engagementswiththirdpartyservice providers;taxation;andgovernance,regulatory complianceandlitigation.Inarrivingatitsjudgement ofwhatriskstheCompanyfaces,theBoardhas consideredtheCompany’soperationsinthelightofthe followingfactors: • thenatureandextentofriskswhichitregardsas acceptablefortheGrouptobearwithinitsoverall businessobjective; • thethreatofsuchrisksbecomingreality; • theCompany’sabilitytoreducetheincidenceand impactofriskonitsperformance;and • thecosttotheCompanyandbenefitsrelated tothereviewofriskandassociatedcontrolsof theCompany. Ariskmatrixisinplaceagainstwhichtherisks identifiedandthecontrolstomitigatethoseriskscan bemonitored.Therisksareassessedonthebasisof thelikelihoodofthemhappening,theimpactonthe businessiftheyweretooccurandtheeffectivenessof thecontrolsinplacetomitigatethem.Thisriskregister isreviewedtwiceperannumbytheAuditCommittee andatothertimesasnecessarybytheBoard. Themajorityoftheday-to-daymanagementfunctions oftheCompanyaresub-contracted,andtheDirectors thereforeobtainregularassurancesandinformation fromkeythirdpartyserviceprovidersregarding theinternalsystemsandcontrolsoperatingintheir organisations.Inaddition,eachofthethirdpartiesis requestedtoprovideacopyofitsreportoninternal controlseachyear,whereavailable,whichisreviewed bytheAuditCommittee. Relations with shareholders DetailsregardingtheGroup’sengagementwith itsshareholdersaresetoutwithintheStrategic Reportonpage21. Governance Corporate governance statement—continued 42     HomeREITplc | AnnualReport | Fortheyearended31August2024 IpresentthereportoftheAuditCommittee(the “Committee”forpurposesofthisReportoftheAudit Committeeonly)fortheyearended31August2024. Composition ThecompositionoftheCommitteeissetoutinthe CorporateGovernanceStatementonpage39.Details ofhowitsperformanceevaluationhasbeenconducted areincludedonpages49and50. Meetings TheCommitteemettwiceduringtheyearunder review.TheDirectors’attendanceissetouton page39intheCorporateGovernanceStatement. Role of the Audit Committee TheprimaryresponsibilitiesoftheCommitteeare: • monitoringtheintegrityofthefinancialstatements oftheCompany,anyformalannouncements relatingtotheCompany’sandtheGroup’sfinancial performance,andreviewingsignificantfinancial reportingjudgementscontainedtherein; • advisingtheBoardonwhethertheAnnualReport andAccounts,takenasawhole,arefair,balanced andunderstandable,andprovidetheinformation necessaryforshareholderstoassessthe Company’spositionandperformance,business modelandstrategy; • considerreportsfromtheindependentvaluerofthe Companytovalueitsinvestments; • keepunderreviewtheeffectivenessofthe Company’sinternalfinancialcontrolsandinternal controlandriskmanagementsystems; • reviewingandmonitoringtheexternalauditor’s independenceandobjectivity; • reviewingtheeffectivenessoftheexternalaudit process,takingintoconsiderationrelevantUK professionalandregulatoryrequirements; • conductingthetenderprocessandmaking recommendationstotheBoardaboutthe appointment,re-appointmentandremovalofthe externalauditor,andapprovingtheremuneration andtermsofengagementoftheexternalauditor; and • developingandimplementingpolicyonthe engagementoftheexternalauditortoprovide non-auditservices,ensuringthereispriorapproval ofnon-auditservices,consideringtheimpactthis mayhaveonindependence,takingintoaccount therelevantregulationsandethicalguidancein thisregard,andreportingtotheBoardonany improvementoractionrequired. Activities during and after the year under review ThedelaysinissuingtheAnnualReportand Accountsfortheyearending31August2022and 31August2023severelyimpactedthepreparation andauditofthesefinancialstatementsfortheyear ending31August2024.Thereasonsforthosedelays aredescribedindetailintheReportoftheAudit Committeeforbothyears. InJanuary2023,theBoardinstructedA&Mtoconduct aninvestigationintoallegationsofwrongdoing.On 5May2023,A&MdeliveredtotheCompanyadetailed report.AsaresultofthefindingsreceivedfromA&M, theBoardundertookthefollowingactivities: • On6February2023,theBoardrevokedtheauthority toapprovepaymentsfromAHRAwithoutthe expressauthorityoftwodirectors; • AEWwereengagedasPropertyManageron 22May2023andasInvestmentManagerandAIFM on21August2023; • On23May2023andsubsequently,theBoard engagedindependentaccountingexpertsto reviewhistoricaltransactionsandreconsiderthe appropriatenessofallaccountingpolicies; • Afteracompetitivetenderprocessandonthe recommendationofAEW,on18July2023theBoard engagedJLLtopreparetheannualvaluationfor theyearsended31August2022and2023andthe 6-monthperiodended28February2023toreplace KnightFrankwhohadresignedon3May2023; • Afterconsideringvariousalternativesandonthe recommendationofAEW,theBoardengaged VibrantEnergySolutionstoinspectallproperties towhichitcouldgainaccess.Theinspection programmewasintendedtoprovidegreaterclarity onthecompositionandoccupancyoftheproperty portfolioandalsotosupportJLL’svaluation.Vibrant oranotherthirdpartyultimatelyinternallyinspected 2,033propertiesor82.2%oftheportfoliowhenthe programmewasconcludedinMay2024; • TheCompanyengagedsolicitorstoreviewthetitle positionwiththeLandRegistryforallproperties; • TheCompanyengagedsolicitorstoreviewvarious legalagreementstounderstandtheGroup’s positiononenforcingagainstcounterparties. TheAuditCommitteemeton29May2024to considertheupdatedauditplanfortheyearended 31August2022andthepreliminaryauditplanforthe yearended31August2023. TheCommitteeagreedthe2023auditplanwith BDO,includingtheprincipalareasoffocusbeing managementoverrideofcontrols,revenuerecognition Governance Report of the Audit Committee  HomeREITplc | AnnualReport | Fortheyearended31August2024     43 andinvestmentpropertyvaluationandrelatedparty transactionsincludingtheInvestmentAdviserand InvestmentManager.TheCommitteealsoreviewed andagreedtheauditfeesforthestatutoryauditofthe Companyanditssubsidiaries.TheCommitteealso discussedandconsideredtheAuditor’sperformance, objectivityandindependenceandtheeffectivenessof theexternalaudit. Atthemeetingon30August2024theCommittee consideredtheupdatedriskregisterfortheproposed ManagedWindDown.Inrelationtotheyearended 31August2022,theCommitteereviewedJLL’s valuationreportandBDO’sdraftauditreporttothe Committee.TheGoingConcernpaperanddraftannual accountsinrespectoftheyearended31August2022 werealsopresented. Atthemeetingon10October2024,theCommittee consideredtheupdatedFinancialPositionand ProspectsProceduresmemorandum(“FPPP”);the updatedriskregisterfortheManagedWind-Down; theGoingConcernandviabilitystatementandREIT taxcompliancereport;JLL’svaluationreportforthe yearended31August2022;BDO’sfinalauditreport totheCommittee;andreviewedtheCompany’sdraft annualconsolidatedfinancialstatementsforthe yearto31August2022andrecommendedtheseto theBoard.Inparticular,theCommitteeadvisedthe Boardthattakenasawhole,the2022AnnualReport isfairandbalancedandprovidestheinformation necessaryforshareholderstoassesstheCompany’s performance,businessmodel,strategyandgoing concernstatement. Atameetingconductedon12November2024,the AuditCommitteeconsideredanupdatedmateriality metricpresentedbyBDOandconsideredthe preliminary2024AuditPlan. Atameetingconductedon18August2025,BDO presentedthefinalauditplantotheAuditCommittee. MostoftheAuditCommittee’sactivitiesduringthe periodto31August2024relatedtothe2022and2023 financialyears.Thoseactivitiesincludethefollowing: • conductedareviewoftheinternalcontrolsandrisk managementsystemsoftheCompanyanditsthird- partyserviceproviders; • conductedareviewoftheCompany’sriskregister asupdatedbyAEW; • reviewedtheannualpropertyvaluationasat 31August2023andrecommendedthesetothe Board.Indoingso,theCommitteemonitoredthe effectivenessoftheCompany’svaluationpolicies andmethodsbasedonnewinformationregarding theconditionofthepropertiesandthefinancial conditionofthetenants; • reviewedtheCompany’sdraftannual consolidatedfinancialstatementsfortheperiod to31August2023aspresentedtotheCommittee on13January2025andrecommendedtheseto theBoard.Inparticular,theCommitteeadvised theBoardthattakenasawhole,theAnnualReport isfairandbalancedandprovidestheinformation necessaryforshareholderstoassessthe Company’sperformance,businessmodel,strategy andgoingconcernstatement; • receivedanddiscussedwithBDOtheauditreport ontheresultsoftheauditfortheyearended 31August2023andconsideredthedraftaudit opinionanddraftletterofrepresentationasat 13January2025; • discussedandconsideredtheAuditor’s performance,objectivityandindependenceandthe effectivenessoftheexternalaudit;and • reviewedwhetheraninternalauditfunction wouldbeofvalueandconcludedthatthiswould provideminimaladdedcomfortatconsiderable extracosttotheCompany.Theexistingsystem ofmonitoringandreportingbythird-partyservice providersremainsappropriate.TheCommittee keepstheneedsforaninternalauditfunctionunder periodicreview. Financialstatementsandsignificant accounting matters TheCommitteehastakenintoaccountthemost significantrisksandissues,bothoperationaland financial,whicharelikelytoimpacttheCompany’s financialstatements.Itconsideredthefollowing keyissuesinrelationtotheCompany’sfinancial statementsduringtheyearandpostyearend: Valuation of investment property TheCommitteeconsidersthevaluationofinvestment propertytobeasignificantareaofjudgmentwhich couldmateriallyimpactthefinancialstatementsfor theyearended31August2024.JLLwasappointed inJuly2023astheindependentvaluertovaluethe Group’spropertyportfolioinaccordancewiththeRICS requirementsonabi-annualbasis. TheGroup’sportfoliohasbeenindependently valuedbyJLLinaccordancewiththeRICSValuation ProfessionalStandards.Asat31August2024,the Group’sportfoliohadamarketvalueof£265.4million representing44.7%ofthehistoricalacquisitioncosts (includingpurchasecosts). Thereductioninthepropertyvaluationfortheyear ended31August2024wasaresultofthesaleof1,098 propertiesduringtheyear,offsetbyappreciation ofsomeproperties.JLLusedtheconditionofthe propertiesasdeterminedthroughtheexternal Governance Report of the Audit Committee—continued 44     HomeREITplc | AnnualReport | Fortheyearended31August2024 inspectionof1,359propertiesandinternalinspectionof 146propertiesandsupportedbythirdpartycondition reportson1,103properties. Indeterminingthefairvalueasat31August2024,JLL hasusedacombinationoftheinvestmentapproach (11.4%oftheportfoliovalue)andMV-VP(88.6%ofthe portfoliovalue).RefertoNote9totheConsolidated FinancialStatementsforfurtherdetail. Whilst682ofthe1,375propertieswithintheportfolio weresubjecttoaleaseasat31August2024,the securityoftheunexpiredtermfortheseleasesdiffers acrosstheportfoliodependingonthecovenant strengthofthetenant.Fortenantswithaweak covenantstrength,orwhereapropertywasdeemed unhabitableornotfitfor-purpose,JLLdisregardedthe leasesandvaluedthepropertiesonthebasisofMV-VP. 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tenant,andtherentlevels demandedundertheleases.JLLcappedtheunexpired leasetermatfiveyearsduetothelackofconfidencein thosetenantsbeingabletofulfiltheirleaseobligations. Furthermore,forthosepropertieswhicharesublettoa tenantwithastrongcovenant,JLLignoredtheprimary in-placeleaseandinsteadcapitalisedthesublease passingrentforitsremainingterm(uptoeightyears). Whereapropertyhasahighpassingrentincomparison toJLL’sopinionofMV-VP,JLLcappedthefairvalue atbetween113%and154%ofMV-VPdepending onthetenant. TheCommitteereviewedthedetailedvaluationreport fromJLLandtheassumptionsunderlyingtheproperty valuationsandconcludedthatthevaluationatthe Company’syearendisappropriate. Revenue Recognition and Collectability of Tenant Related Receivables TheCommitteeconsidersrevenuerecognitionand thecollectabilityoftenantrelatedreceivablestobe anareaofsignificantjudgmentwhichcouldmaterially impactthefinancialstatementsfortheyearended 31August2024.Theinspectionprogrammerevealed that198propertieshadbeenacquiredwhichwere deemedunhabitableofwhichtheGroupstillowned 44at31August2024.TheCommitteeconsidered thatbecausethepropertieswereunhabitable,they didnotmeetthecriteriaforrevenuerecognitionand thereforedidnotrecogniseanyrevenueduringtheyear associatedwithanyofthoseproperties. TheCommitteealsoconsiderstheanyreceivables outstandingtonon-performingtenantsshouldbe providedforinfull.BecausetheGroupjudged12of its20directtenantswerenon-performingandapoor financialcovenant,theCommitteeconcludedthat anyrelatedreceivablesshouldbeprovidedforasat 31August2024. Significantaccountingjudgementsandestimates Thejudgements,estimatesandassociated assumptionsthathavehadamaterialimpactin thepresentationofassetsandliabilitiesinthese accountshavebeenmadeinrelationtovaluations ofinvestmentproperty,rentalrevenuerecognition andthecollectabilityofdebtors.Thesearediscussed aboveanddetailedinNote3totheConsolidated FinancialStatements. Qualifiedindependentauditor’sreport BDOwerenotabletoperformcompleteaudit proceduresonleaserevenuefromoccupants associatedwithpropertiesmanagedbythirdparty managersbecausetheGroupcouldnotprovideall requiredauditevidencetosupporttheamounts recognised.Accordingly,theyhavequalifiedtheiraudit reportforthismatter.Rentalrevenuefromproperties managedbythird-partymanagersintheyearto 31August2024totalled£5.75millionofthetotalrental revenuerecognisedof£37.7million. Allpropertiesmanagedbypropertymanagerswere previouslyunderleasewithanon-performingtenant. TheGroupregainedcontrolofthepropertiesafter thetenantenteredintoaleasesurrenderagreement. InmanycasesAEWreceivednoinformationfromthe surrenderingtenantrelatedtothepropertiesortheir occupantsathandoverandmanyoftheoccupantsdid nothaveanin-placeASTortheASTwasnotprovided toAEWatsurrender.WhentherewasnoASTinplace, AEWpreferredtokeepthepropertyvacant;themain reasonsforthisareasfollows: • Thepropertywasrequiredtobeauctioned. TheGroupwasundersignificantpressurefrom ScottishWidowstorepaytheoutstandingloans andpropertieswhichofferedvacantpossession weremorevaluableandsaleableatauctionthan thosewithoccupants.AftertheGroupenteredinto theManagedWind-DownandAEWwereadvised thatkeepingcurrentlyvacantpropertiesasvacant providedbestvalueandmaximumbuyerflexibility. • Inmanycases,thetenants/occupantsdidnot fitthedesiredprofileforthepropertyandAEW wereadvisedthatitwouldbeeasiertoevictanon- performingoccupantwithoutanASTthanonewith anin-placeagreement.Accordingly,AEWinstructed propertymanagersnottopursueobtainingASTs whereonewasnotalreadyin-place;and • ThequestionofwhentheRenters’RightsBill(“RRB”) wouldbeapprovedand/orthecompositionofthe finaltermsprovidedfurtheruncertainty. Governance Report of the Audit Committee—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     45 Duringtheyearended31August2024,theGroup engagedsevenpropertymanagerstomanage propertiesontheGroup’sbehalfofwhichtherewere fourthatwereconsideredcoremanagers.Thesefour wereengagedtomanagespecificpropertiesbasedon locationandtypeofoccupant. Inordertomonitortheactivitiesandfeesforthesefour propertymanagers,AEWreceivesamonthlyfinancial packageandmeetswiththeseniorteamfromeachto reviewkeyitems,including: 1. Propertybypropertyoccupancy(andvacancy)and associatedrevenuerecognisedandcollected; 2. Overallmonthlyreportedresults; 3. Capexandmaintenancerequirements; 4. Insurancematters; 5. Propertyhealthandsafetyand complianceissues;and 6. Computationofmanagementfeesandensuring theseareinlinewiththeagreementand collectedrents. MonthlycashreceivedbytheGroupfromeach propertymanagerwasthenreconciledtothemonthly reportingpackanddifferencesmonitoredandpursued toensureonlyrequiredandapprovedamountshave beenretainedbythepropertymanager. Inaddition,AEWhaveaweeklycallwitheveryproperty managertodiscussmoreurgentmatters,including emergencyandothercapex,tenantissues,health andsafetymattersandapprovalofotherone-time expensespriortoenteringcontract. WhileBDOcouldnotaudittherevenueassociatedwith occupantswithnoAST,theDirectorsarecomfortable thatthemonitoringbyAEWisadequatetoensure thatthereportedresultsareinlinewithunderlying occupancyandcashmovements.Further,theDirectors considerthattheoperatinglossfortheyearended 31August2024wouldnothavechanged,because nofurthercashwouldbeexpectedtobecollected associatedwiththeseleases. Going concern and viability statement TheDirectors,atthetimeofapprovingthefinancial statements,arerequiredtoconsiderwhetherthey haveareasonableexpectationthattheCompanyand theGrouphaveadequateresourcestocontinuein operationalexistencefortheforeseeablefutureand donotconsidertheretobeanythreattotheirgoing concernstatus. AsdiscussedinNote26totheConsolidatedFinancial Statements,on16September2024shareholders approvedanewinvestmentpolicyforaManagedWind- DownoftheGroup’soperations.Partofthatstrategy wastosellenoughpropertiesthroughauctionsto repayallamountsoutstandingtoScottishWidows.On 27November2024,theGrouprepaidtheloansandin December2024,theGrouppaidtheDeferredFeesof £9.0millionandScottishWidowsreleaseditscharge overtheGroup’sassets. PursuanttotheManagedWind-Down,theGroupwill sellitsremainingportfolioofinvestmentproperties andwillnotmakeanyfurtherrealestateacquisitions. Nofurtherinvestmentwillbemadeunlesssuch expenditureisnecessarytoprotectorenhancean asset’snetrealisablevalueorinordertocomplywith statutoryobligations. CashflowprojectionsfortheGrouphavebeenprepared byAEWandagreedwiththeBoardwhichconsider: 1. TheCompanyanticipatesthattheportfoliosale processwillconcludeinthefourthquarterof2025. 2. Revenuewillcontinuetobecollectedontenanted propertiesheldbytheGroup. 3. Expensesareforecasttocontinuetobeincurred atthecurrentlevelforthoseservicesrequired forthecontinuedoperationoftheGroup.Notice periodshavebeenconsideredwherenecessaryand themajorityofoperationsareexpectedtoreduce significantlybythefirstquarterof2026,whenthe Groupexpectstofileitsannualreportandaccounts fortheyearended31August2025. 4. Nothinghasbeenbudgetedforanypotential settlementofeitherthepre-actionletterofclaimor theFCAmatter,bothasdescribedbelow. Asofthedateofthesefinancialstatements,the Grouphasapproximately£8.8millionoffreecash. Forpurposesofthegoingconcernanalysisthe Directorshaveassumednilcashrentnetofproperty expensesuntilthepropertiesaresold.TheDirectors haveforecastexpendituresoverthenexttwelve monthsandaresatisfiedthatthecashonhandwill beadequatetocoverthoseexpenses.Intheevent thatexpendituresexceedthoseestimates,theGroup canselladditionalpropertiesatauctiontocoverany unforeseenexpenses. InOctober2023,theCompanyreceivedapre-action letterofclaimwhichassertsthattheCompany providedinformationtoinvestorswhichwasfalse, untrueand/ormisleadingandasaresultinvestors sufferedlosses.TheDirectorsarenotcurrentlyableto concludewhetherorwhenaformalclaimmaybeissued andifaclaimisissued,whatthequantumofsuchclaim maybe.Further,on7February2024,theCompany wasnotifiedbytheFCAofitscommencementofan investigationintotheCompany,coveringtheperiod from22September2020to3January2023.The CompanyandtheDirectorsarecooperatingwith Governance Report of the Audit Committee—continued 46     HomeREITplc | AnnualReport | Fortheyearended31August2024 theFCAinitsinvestigation.However,theyarenot abletoassessorquantifywhat,ifany,actionmay betaken.UntiltheDirectorshavebettervisibility intotheultimateexposureoftheseandanyother contingentliabilities,theywillnotbeabletosatisfy themselvesastowhatifanyamountswillberequired tosettlethesematters.WhentheDirectorsareable toestimatetherangeofexposure,theCompanymay returnanyestimatedsurpluscapitaltoinvestors, whilstmaintainingaprudentlevelofcashtowind downtheCompanyandGroupandconsideringany othereventualities. Asaresultofthethreatenedlitigation,theFCA investigationandtheDirectors’expectationforan orderlywind-downoftheCompany’soperations,the Directorsconsideritappropriatetoadoptabasisof accountingotherthanasagoingconcerninpreparing thefinancialstatements.Nomaterialadjustmentsto accountingpoliciesorthevaluationbasishavearisenas aresultofceasingtoapplythegoingconcernbasis. Internal controls TheCommitteecarefullyconsiderstheinternalcontrol systemsbymonitoringtheservicesandcontrolsof itsthird-partyserviceproviders.Itreviewedand, whereappropriate,updatedtheriskmatrixduringthe yearunderreview.Thisisdoneonabi-annualbasisor morefrequentlyifrequired.TheCommitteereceived areportoninternalcontrolsduringtheperiodunder reviewfromAEWandtheCompany’sotherkeyservice providersandnosignificantmattersofconcernwere identifiedatthetime.TheBoardcontinuestoregularly reviewandupdatetheriskmatrixwithAEW.TheBoard hasconsideredtheinternalcontrolsandriskmatrixand determinedthatthesewereappropriatebasedonthe informationreportedtotheBoardandallCommittees atthetime.Theriskregisterhasbeensubstantially amendedpostperiodendduetotheincreasedrisk andtypeofriskstheCompanyisnowexposedto andtoreflecttheactivitiesoftheGroupduringthe ManagedWind-Down. Auditor’s remuneration FeespaidtotheGroup’sIndependentAuditorincludethefollowing: Serviceprovided Yearended 31August2024 £’000’s Periodended 31August2023 £’000’s FeespayablefortheauditoftheCompany’sannualaccounts 772 1,004 FeespayablefortheauditoftheCompany’ssubsidiaries 72 72 Feepayablefordatapreservation 2 – FurtherdetailsoftheAuditor’sremunerationaresetoutinNote5totheConsolidatedFinancialStatements. Non-audit services provided by the Auditor TheCommitteehasanon-auditservicespolicyin place.Thesupplyofnon-auditservicesprovidedby theAuditorisconsideredonacase-by-casebasisand mayonlybeprovidedtotheCompanyifapproved bytheCommittee,theprovisionofsuchservicesis atareasonableandcompetitivecostanddoesnot constituteaconflictofinterestorpotentialconflict ofinterestwhichwouldpreventtheAuditorfrom remainingobjectiveandindependent.BDOcharged £2,000topreservedataattherequestoftheCompany whichisconsideredanon-auditservice. Effectivenessoftheexternalaudit TheChairoftheCommitteemetwiththeleadaudit partnertoagreetheauditplanfortheyearended 31August2024andtodiscussanyissuesarisingfrom theprioryearaudit.TheChairoftheCommitteealso metwiththeleadpartner,priortothefinalisationof theauditoftheAnnualReportandAccountsforthe yearended31August2024withoutAEWbeingpresent, todiscusshowtheexternalauditwascarriedout, thefindingsfromsuchauditandwhetheranyissues hadarisenfromtheAuditor’sinteractionwiththe Company’svariousserviceproviders. Followingitsreviewpriortotheapprovalofthese accounts,theAuditCommitteehaschallenged theAuditorandconcludedthattheAuditorhas demonstratedagoodunderstandingofthestructure andoperationsoftheCompanyandhadidentifiedand focusedontheareasofsignificantfinancialreporting risk.Theexternalauditprocesswasconsideredtohave beeneffective. Independence and objectivity of the Auditor BDOwasselectedastheCompany’sexternalAuditor atthetimeoftheCompany’slaunchin2020following aformaltenderprocessandreviewoftheAuditor’s credentials.ThecontinuingappointmentoftheAuditor isreviewedannuallybytheCommittee,whichgives considerationtotheAuditor’sfeesandindependence, alongwiththemattersraisedduringeachaudit. TheCommitteehasconsideredtheindependenceand objectivityoftheAuditorandhasnotedthattherewere nonon-auditservicesprovidedduringtheyearunder auditandthatthenon-auditserviceprovidedafter 31August2024doesnotimpactBDO’sindependence. TheCommitteereceivesannualassurancefromthe Auditorthatitsindependenceisnotcompromisedby Governance Report of the Audit Committee—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     47 theprovisionofnon-auditservices.TheCommittee issatisfiedthattheAuditor’sobjectivityand independenceisnotimpairedbytheperformanceof non-auditservicesandthattheAuditorhasfulfilledits obligationstotheCompanyanditsshareholders. Re-appointment of the Auditor InconsiderationoftheperformanceoftheAuditor, theservicesprovidedduringtheyearandareviewof BDO’sindependenceandobjectivity,theCommittee hasrecommendedtotheBoardthere-appointment ofBDOfortheyearended31August2025. Fair,balancedandunderstandable financialstatements TheCommitteehasconcludedthattheAnnualReport fortheyearended31August2024,takenasawhole, isfair,balancedandunderstandableandprovidesthe informationnecessaryforshareholderstoassessthe Company’sbusinessmodel,strategyandperformance. TheCommitteehasreporteditsconclusionstothe Board.Itreachedthisconclusionthroughaprocessof reviewofthedraftfinancialstatementsandenquiries tothevariouspartiesinvolvedintheproductionofthe AnnualReport. Rod Day ChairoftheAuditCommittee 17October2025 Governance Report of the Audit Committee—continued 48     HomeREITplc | AnnualReport | Fortheyearended31August2024 IpresentthereportoftheManagementEngagement Committee(the“Committee”forpurposesofthis ReportoftheManagementEngagementCommittee only)fortheyearended31August2024. Composition ThecompositionoftheCommitteeissetoutinthe CorporateGovernanceStatementonpage39.Details ofhowitsperformanceevaluationhasbeenconducted areincludedonpages49and50. Meetings TheCommitteemettwiceduringtheyearunder review.TheDirectors’attendanceissetouton page39intheCorporateGovernanceStatement. Role of the Management Engagement Committee ThekeyresponsibilitiesoftheCommitteeare: • monitoringandevaluatingtheInvestment Manager’sinvestmentperformanceandits compliancewiththetermsoftheIMA; • reviewing,atleastannually,theperformanceand continuedretentionoftheInvestmentManager; • reviewingthelevelandmethodofremuneration, thebasisofperformancefees(ifany)andthe noticeperiodoftheInvestmentManagertoensure thattheseremaininthebestinterestsofthe shareholders; • ensuringthatprocesseshavebeenputinplace toreviewtheCompany’sriskmanagementand internalcontrolsystemsdesignedtosafeguard shareholders’investmentandtheGroup’sassets; and • monitoringandevaluatingtheperformanceof theotherkeyserviceprovidersoftheCompany toensuretheircontinuedcompetitivenessand effectiveness(notinginparticularthesignificant challengestheCompanyhasfacedinpublishing financialstatements,sustainedandelevated levelsofprofessionalfeesandintensiveproperty- levelinitiatives). Activities during the year AEWwasappointedasInvestmentManagerandAIFM oftheCompanyon21August2023.TheCommittee hasreviewedtheperformanceofAEWfromthedate ofitsappointmentandissatisfiedthatithasthe necessaryskillsandexperiencetomanagetheGroup’s investments,inaccordanceinitiallywiththeAmended InvestmentPolicyandnowtheNewInvestment Policy.TheCommitteeconsidersthatthecontinuing appointmentoftheInvestmentManagerandthe termsofitsremunerationareinthebestinterests ofshareholdersasawhole.TheCommitteeisalso satisfiedthatprocesseshavebeenputinplaceto reviewtheCompany’sriskmanagementandinternal controlsystemsdesignedtosafeguardshareholders’ investmentandtheCompany’sassets. TheperformanceoftheCompany’sotherservice providerswascloselymonitoredbytheBoard,through theCommitteeandwhereappropriatewiththe supportoftheInvestmentManager.TheCommittee’s reviewofkeyserviceprovidersincludedanevaluation oftheirfeesandthequalityoftheirservicetoensure theyremainedeffectiveandcompetitive.Thisprocess includedtheadoptionofaclassificationsystemto ensurethatserviceproviderswereevaluatednotonly ontheirperformance,butaccordingtotheimportance oftheirroleintheCompany’soperations.The Committee’sserviceproviderreviewincludedperiodic considerationoftheirinternalpoliciesandprocedures toensureadequatecontrolsareinplace. Conclusions and recommendations Withdueconsiderationoftheeventsthatoccurred priortotheperiodunderreview,whichincludedthe failureofseveralkeyserviceproviderstoraisematerial mattersorconcernswiththeBoard,theCommittee determinedthatcertainservicesshouldbetendered. TheInvestmentManagercommencedtenderingof severalkeyserviceproviders,however,duetothe ManagedWind-Downandlegacyissuesfacingthe Company,theBoardultimatelydeterminedthatitwas intheCompany’sbestinterestsforcertainincumbent serviceproviderstoremaininplace.Inreachingthis decision,theBoardweighedcarefullytheriskof disruption,thecommercialchallengeoftendering duringawind-downversustheobviousadvantages ofappointingserviceprovidersithadfullconfidence in.TheBoardisnonethelesssatisfiedthatithas judgedthebalanceofriskscorrectlyandbelievesthe currentserviceprovidersarebestplacedtoassistthe Companywithitscurrentobjectives. AcomprehensivereviewoftheCompany’skey serviceprovidershasbeenundertakenbythe Committeeduringmeetingson28November2024 and18August2025.TheCommitteewillcontinueto monitortheperformanceofkeyserviceproviders anddeterminewhethercurrentappointments remainappropriate. Peter Williams ChairoftheManagementEngagementCommittee 17October2025 Governance Report of the Management Engagement Committee  HomeREITplc | AnnualReport | Fortheyearended31August2024     49 IpresentthereportoftheNominationCommittee (the“Committee”forpurposesofthisReportofthe NominationCommitteeonly)fortheyearended 31August2024. Composition ThecompositionoftheCommitteeissetoutinthe CorporateGovernanceStatementonpage39.Details ofhowitsperformanceevaluationhasbeenconducted areincludedbelow. Meetings TherehasbeenonemeetingoftheCommittee duringtheyear.TheDirectors’attendanceatthis meetingissetoutintheCorporateGovernance Statementonpage39. Role of the Nomination Committee TheprimaryresponsibilitiesoftheCommitteeare: • reviewingthestructure,sizeandcompositionofthe Board; • ensuringplansareinplacefororderlysuccession totheBoardandensuringthatsuchplanspromote diversityofgender,socialandethnicbackgrounds, cognitiveandpersonalstrengths; • reviewinglengthofserviceofeachDirectorand assessingifthisimpactsontheirindependence; • consideringtheuseofopenadvertisingand/oran externalsearchconsultancyforeachappointment; • consideringjobspecificationsandwhetherthe candidateshavethenecessaryskillsandtime availabletodevotetotheCompany; • arrangingforanynewDirectorstobeprovidedwith trainingandinduction; • makingrecommendationstotheBoardregarding theCompany’spolicyonthetenureoftheChairof theBoard; • makingrecommendationstotheBoardregarding theCompany’spolicyondiversityandinclusion;and • performingaformalandrigorousevaluationof theBoard,itsCommittees,theChairoftheBoard andindividualDirectorsonatleastanannualbasis, including,ifappropriate,consideringengagementof anexternalevaluatortofacilitatetheevaluation. Activities Duringtheyear,theCommittee: • revieweditstermsofreferenceandconsidered whethertheseremainedappropriate; • consideredtheresultsoftheevaluationofthe Board,itsCommittees,theindividualDirectorsand theChair; • aspartoftheevaluationprocess,consideredthe Board’scompositionwithreferencetothemixof skills,diversity,knowledgeandexperience,andhow thesealignedwiththeGroup’sstrategicobjectives andtheopportunitiesandchallengesfacedbyit; • agreedthepolicyregardingthetenureofthe Boardmembers; • reviewedthesignificantcommitmentsofthe Directorsandthetimededicatedbythemtothe affairsoftheCompany; • maderecommendationstotheBoardregardingthe Directors’annualre-electionbyshareholdersatthe AGM;and • discussedthesuccessionplansfortheBoardto ensureitsprogressiverefreshing. Performance evaluation Aformalannualperformanceevaluationprocess isundertakenfortheBoard,theCommittees,the individualDirectorsandtheChair.TheDirectors areawarethattheycontinuallyneedtomonitorand improveBoardperformanceandrecognisethatthiscan beachievedthroughregularBoardevaluation,which providesavaluablefeedbackmechanismforimproving Boardeffectiveness. TheDirectorsundertookaninternalperformance evaluationbywayofcompletingwritten questionnaires,ledbytheChairduringtheperiod, designedtoassessthestrengthsandindependenceof theBoardandtheperformanceofitsCommittees,the ChairandtheindividualDirectors. Thequestionnairesarealsointendedtoanalysethe focusofBoardmeetingsandassesswhethertheyare appropriate,orifanyadditionalinformationmaybe requiredtofacilitateBoarddiscussions.Anytraining needsidentifiedaspartoftheevaluationprocessare alsoconsideredbytheBoard.Theevaluationofthe ChairwascarriedoutbytheotherDirectorsofthe Company,ledbytheSeniorIndependentDirector. Governance Report of the Nomination Committee 50     HomeREITplc | AnnualReport | Fortheyearended31August2024 TheresultsofthisBoardevaluationprocesswere reviewedanddiscussedbytheNominationCommittee andonlytheDirectorsappointedduringtheyearended 31August2024participatedintheBoardevaluation process.TheCommittee’sdeliberationsconcluded thatasawholetheBoardfunctionseffectivelyandthe currentCommitteestructureremainedappropriate. Certainareasofimprovementwereidentifiedatthe time,thisincludedfurthertrainingforthedirectors appointedduringtheyearended31August2024. TheChair’sevaluationwasconductedbyMrWilliams astheSeniorIndependentDirectoroftheCompany. TheresultsoftheBoardevaluationprocesswere reviewedanddiscussedbytheNominationCommittee. Therecommendationsmadeaspartoftheevaluation processwerediscussedbytheDirectorstoensurethat allpointswereaddressedappropriatelyandtoenable continuousimprovementoftheBoard. InaccordancewiththeAICCode,beingaFTSE250 constituent,theGroupisrequiredtohaveanexternally facilitatedBoardevaluationatleasteverythree years.Itwasintendedthatin2023,anexternalagency wouldbeengagedtoconductthisprocess,however duetounexpectedeventsthathavearisenandthe subsequentchangeinBoardpersonnelthisprocesshas beenruninternallyin2024andtheuseofanexternal agencywasnotdeemedtothebestuseofShareholder resourcesatthistime. Appointment of Directors Aphasedsuccessionprocesswasinitiatedbythe CompanyinSeptember2023,withtheaimthatthe majorityoftheDirectorsinofficeatIPOwillhave departedatoraroundthepointofrestorationof tradingintheCompany’ssharesandthattheBoard transitionentirelywithin12months,allowingaperiod ofhandover.Accordingly,MichaelO’Donnellwas appointedastheChairoftheCompanywitheffect from18January2024andPeterWilliamsasthe SeniorIndependentDirectorfrom2April2024.Rod DaywasappointedasIndependentNon-Executive Directoron7June2024.InassemblingthenewBoard, carefulconsiderationwasgiventotheappropriate skills,experience,knowledge,culture,capacityand independenceoftheincomingBoardmembers.The CommitteeworkedalongsidetheBoardinthisprocess andmaderecommendationstotheBoardregardingthe appointmentofthenewDirectors. FidelioPartners,anindependentexternalexecutive searchagencywithnoconnectiontotheCompany oritsDirectors,wasengagedbytheCompanyforthe purposesofidentifyingpotentialcandidatesfrom adiverserangeofexperience,skills,backgrounds, andethnicities. Election and Re-election of Directors MichaelO’Donnell,althoughonlyappointedon 18January2024,retiredandstoodforre-election asrequiredundertheArticles,attheAGMon 29February2024.MichaelO’Donnell,RodDayand PeterWilliamswerere-electedasdirectorsatthe2025 AnnualGeneralMeetingheldon25February2025. Boarddiversity,TenureandSuccessionPlanning TheBoard’sdiversitypolicyisbasedonitsbelief thattheBoardshouldhaveadiverserangeof experience,skillsandbackgrounds.Whenmaking recommendationsfornewappointmentstothe BoardandplanningforBoardsuccession,the NominationCommitteewilltakeintoconsideration therecommendationsoftheAICCode,theParker Reviewandotherguidanceonboardroomdiversity andinclusion. TheBoardsupportstherecommendationsofthe FTSEWomenLeadersReviewongenderdiversity anditsvoluntarytargetforFTSE350boardstohavea minimumof40%ofwomenonboards.TheCompany alsosupportstheParkerreview’srecommendations toincreaseethnicandculturaldiversityoncompany boards.WhilsttheBoarddoesnotconsiderit appropriatetousespecificdiversitytargetsgivenits smallsize,itacknowledgesthatdiversityisimportant toensurethattheCompanycandrawonabroadrange ofperspectives,skills,experience,knowledgeand backgroundstoeffectivelyleadtheCompany. Asat31August2024,theBoardcomprisedtwofemale andfivemaleDirectors.AllDirectorsaremembersof eachoftheBoardCommittees,therefore,thegender representationsetoutbelowisthesamefortheBoard anditsvariousCommittees. Governance Report of the Nomination Committee—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     51 ThroughselfreportingbytheDirectors,thefollowing tablessetoutthegenderandethnicdiversityofthe Boardasat31August2024: Genderdiversity Number ofBoard members Percentageof theBoard Numberof senior positions ontheBoard 1 Men 5 71.4 2 Women 2 28.6 1 Other – – – Notspecified/ prefernottosay – – – Ethnicdiversity Number ofBoard members Percentageof theBoard Numberof senior positions ontheBoard 1 WhiteBritish orotherWhite (includingminority- whitegroups) 7 100 3 Mixed/Multiple EthnicGroups – – – Asia/AsianBritish – – – Black/African/ Caribbean/ BlackBritish – – – Otherethnic groups, includingArab – – – Notspecified/ prefernottosay – – – 1 Senior positions include Chair of the Board, Senior Independent Director and Chair of the Audit Committee. Asanexternallymanagedinvestmentcompanywith solelyindependent,non-executiveDirectors,the CompanydoesnothaveaChiefExecutiveoraChief FinancialOfficerandhasnoemployeesorinternal operations.Accordingly,therearenodisclosuresabout executivemanagementpositionstobeincluded.The roleoftheAuditCommitteeChairisconsideredtobe aseniorpositionandhasbeenincludedintheabove tables.WiththreeBoardappointmentsoccurringin theperiodunderreview,theCompanyrecognisesthat itiscurrentlynotmeetingthetargetonethnicand genderdiversity.WhilsttheBoardunderstandsthe importanceofdiversityandinclusion,itiscognisant thattheCompanyisunabletomeetthediversity andinclusiontargetsowingtoimplementationof thewind-downstrategy.Asaresultofthedecision toentertheManagedWind-Downandthechange inBoardpersonnel,furtherappointmentsare unlikelytobemade. Michael O’Donnell ChairoftheNominationCommittee 17October2025 Governance Report of the Nomination Committee—continued 52     HomeREITplc | AnnualReport | Fortheyearended31August2024 Governance Directors’ remuneration report Annual report on Directors’ remuneration TheDirectors’RemunerationReportfortheyearended 31August2024issetoutbelow. Statement from the Chair of the Board AstheBoardconsistsentirelyofindependentnon- executiveDirectors,itisnotconsideredappropriate fortheCompanytoestablishaseparateremuneration committeeandtheremunerationoftheDirectors isthereforedealtwithbytheBoardasawhole.No Directorisresponsiblefordeterminingtheirown, individualremuneration. ForthoseDirectorsinofficeattheIPO,duringtheyear ended31August2024,thefeeswerepaidattherateof £50,000fortheChairoftheBoardand£36,000forthe otherDirectors,withanadditionalpaymentof£5,000 totheChairoftheAuditCommittee.TheDirectors’ feesarefixedwithnovariableelement. MichaelO’DonnellwasappointedastheChairofthe Companywitheffectfrom18January2024atabase feeof£100,000withasupplementaryprorataannual feeof£100,000(whichwasreducedtoanadditional £75,000from1January2025andtoanadditional £50,000from1July2025)owingtotheadditionalwork hewouldundertakeastheChairoftheCompany,until theCompanystabilised.PeterWilliamswasappointed asaDirectorfrom2April2024,atabasefeeof£60,000 andanadditionalfeeof£10,000forhisroleasthe SeniorIndependentDirector.RodDaywasappointed asaDirectorwitheffectfrom7June2024,atabase feeof£60,000.RodDayreplacedMarleneWoodasthe AuditCommitteeChairofCompanyon14January2025 andreceivesanadditionalfeeof£10,000onhis appointment. ThefeespayabletotheDirectorswillbereviewedonan annualbasis,asdetailedintheDirectors’Remuneration Policyonpage55. TheCompanyisrequiredtoobtainformalapproval fromshareholdersoftheDirectors’Remuneration Policyonceeverythreeyearsandinanyyearifthere areanychangesproposedtothepolicy.TheDirectors’ RemunerationPolicywhichwasimplementedduring theperiodunderreviewwasapprovedbyshareholders on27January2022.Shareholdersarerequestedto approvetheDirectors’RemunerationReportonan annualbasis.ThevoteontheDirectors’Remuneration Policyissubjecttoabindingvote,whilethevoteonthe Directors’RemunerationReportisanadvisoryvote. TheDirectors’RemunerationPolicywaslastapproved byshareholdersattheAGMheldon20February2025 with99.04%ofvotesinfavour,0.96%votingagainst and116,678voteswithheld.Nosignificantchangeswere proposedtothewayinwhichthepreviouslyapproved Directors’RemunerationPolicywasimplemented duringthefinancialyearunderreview. Performance of the Company Thefollowinggraphcompares,sinceAugust2021, thetotalshareholderreturnoftheGroup’sShares relativetoareturnonahypotheticalholdingover thesameperiodintheFTSEEPRA/NAREITUKIndex andtheFTSEAllShareIndex.Theseindiceshave beenchosenbytheBoardasthemostappropriateto comparetheGroup’sperformance.Totalshareholder returnisthemeasureofreturnsprovidedbyaGroup toshareholdersreflectingsharepricemovementsand assumingreinvestmentofdividends. AUG 21 MAY AUGJAN 22 OCTAUGMAYJAN 23 AUG MAYJAN 24 AUGMAYJAN 25 Home REIT FTSE ALL SHARE FTSE EPRA/NAREIT UK 0 20 40 60 80 100 120 140 160  HomeREITplc | AnnualReport | Fortheyearended31August2024     53 Directors’remuneration(audited) Fees Expenses Total Forthe yearended 31August2024 £ Forthe periodended 31August2023 £ Forthe yearended 31August2024 £ Forthe periodended 31August2023 £ Forthe yearended 31August2024 £ Forthe periodended 31August2023 £ Percentage changeinfees % LynneFennah(Chair) 1 50,000 50,000 2,710 793 52,710 50,793 – Peter Cardwell 36,000 36,000 – – 36,000 36,000 – Simon Moore 36,000 36,000 – – 36,000 36,000 – Marlene Wood (Chair of theAuditCommittee) 41,000 41,000 2,015 4,509 43,015 45,509 – Michael O'Donnell 124,359 – – – 124,359 – – Peter Williams 29,167 – – – 29,167 – – Roderick Day 13,923 – – – 13,923 – – 330,449 163,000 4,725 5,302 335,174 168,302 103% 1 Ms. Fennah continues to support the Board on a part-time basis compensated on £3,000 per month from the date of her resignation from the Board on 14 January 2025 until 30 June 2025 and £1,000 per month since 1 July 2025. The fee would be adjusted if Ms. Fennah spends more than the agreed hours in any month, although this has not occurred since the contract started. Otherthanasdiscussedabove,therearenoothervariableelementsintheremunerationpayabletotheDirectors. Noneoftheabovefeeswaspaidtothirdparties. Relative importance of spend on pay Thefollowingtablesetsout: • theremunerationpaidtotheDirectors;and • theinvestmentadvisoryandinvestment managementfeesincurredbytheGroup. Therewerenodistributionsmadetoshareholders bywayofdividendsin2024. Yearended 31August2024 £’000 Periodended 31August2023 £’000 Change % Directors’ fees 330 163 102 Investment* Adviser’s fee (until 30June2023) – 5,094 N/A Investment Manager’s Fee 5,000 1,085 N/A Dividends 0 10,910 (100) * Total fees incurred of £5,822,000 less credits negotiated by the directors of £728,000. ** Fee includes £900,000 paid to AEW in capacity as Property Adviser from 22 May 2023 to 20 August 2023. *** The difference of £32,000 in FY24 and £13,000 in FY23 to the amount presented in the Consolidated Statements of Comprehensive Income is due to U.K. National Insurance.. Note: the items listed in the table above are as required by the Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013, with the exception of the investment advisory/investment management fee, which has been included because the Directors believe it will help shareholders’ understanding of the relative importance of the spend on pay. The figures for this measure are the same as those shown in Note 5 to the financial statements. Directors’shareholdings(audited) ThereisnorequirementundertheArticles,or thetermsoftheirappointment,forDirectorsto holdSharesintheGroup.TheDirectorshadthe followingshareholdingsintheGroupallofwhichare beneficiallyowned. Directors 31August2024 31August2023 Peter Cardwell 10,000 10,000 Rod Day – – Lynne Fennah 55,000 55,000 Simon Moore 56,000 56,000 Michael O’Donnell – – Peter Williams – – Marlene Wood 30,000 30,000 Appointed during the year. Therehavebeennochangestotheseinterests between31August2024andthedateofsigning thisReport.NoneoftheDirectorsoranypersons connectedwiththemhadamaterialinterestin theCompany’stransactions,arrangements,or agreementsduringtheyear. On14January2025,PeterCardwell,SimonMoore, LynneFennahandMarleneWoodresignedasDirectors oftheCompany. Governance Director’s remuneration report—continued 54     HomeREITplc | AnnualReport | Fortheyearended31August2024 Governance Director’s remuneration report—continued Voting at AGM TheAnnualReportandAccounts,togetherwiththereportsoftheDirectorsandBDOandtheDirectors’ RemunerationReportfortheperiodended31August2022werepresentedtoshareholdersattheGeneralMeeting heldon5December2024.Thevotescastbypollwereasfollows: 2022AnnualReportandAccounts Directors’ Remuneration Report Numberofvotes %ofvotescast Numberofvotes %ofvotescast For 196,861,578 45.25 472,949,024 87.94 Against 238,233,187 54.75 64,833,524 12.06 Total votes cast 435,094,765 537,782,548 Number of votes withheld 102,787,803 100,200 TheBoardrecognisedthat,ofthe55%oftheshareholdersthatvoted,amajorityofthoseshareholdersvoted againsttheresolutiontoreceivetheCompany’sAnnualReportandAccountsfortheyearended31August2022 andalsonotesthatashareholderadvisoryconsultancy(ISS)recommendedthatshareholdersvoteagainstthe resolution,duetothedelayinpublishing,andqualifiednatureof,theaccounts.Afterdiscussingwithshareholders, theBoardconcludedthatmanyofthevotesagainstapprovingthe2022and2023AnnualReportsandAccounts relatedtotheverysignificantdelayinpublishingtheaccountsandthequalifiednatureofBDO’sopinion,aswellas widerconcernsaroundthehistoricalissuesattheCompany.TheBoardacknowledgestheshareholderfrustration withthesignificantchallengeofcollectingandpreparinginformationtosupporttheissuanceandauditofthe annualreports.ItisworkingwithAEWtopublishtheoutstandingfinancialreportingassoonaspossibletosupport therelistingoftheshares.Duetoanoversight,anupdateontheactionstakenwasnotmadetothemarket withinsixmonthsoftheAGMincontraventionofProvision4oftheCode.TheBoardandAEWcontinuetoengage regularlywithshareholdersonthefinancialreportingprocessandothermatters. AresolutiontoapprovetheDirectors’RemunerationReportfortheyearended31August2023wasputtoa voteoftheshareholdersattheGeneralMeetingtoapprovetheAnnualReportandAccountsfortheyearended 31August2023.Thiswasheldon20February2025.Thevotescastbypollwereasfollows: 2023AnnualReportandAccounts Directors’ Remuneration Report Numberofvotes %ofvotescast Numberofvotes %ofvotescast For 245,396,593 55.10 520,322,042 99.86 Against 199,942,709 44.90 706,719 0.14 Total votes cast 445,339,302 521,028,761 Number of votes withheld 75,786,237 96,778 TheBoardoftheCompanynotesthatalthoughthe resolutiontoreceivetheCompany’sannualreport andaccountsfortheyearended31August2023was passed,therewereamaterialnumberofvotescast againstanditalsonotesthatshareholderadvisory consultantsrecommendedthatshareholdersvote againsttheresolution.TheBoardwouldliketo emphasisethattheGroupandCompany’sStatement ofFinancialPositionfor31August2023isnotsubject tothedisclaimerofopinionissuedwithrespectto theConsolidatedStatementofComprehensive Income,ConsolidatedStatementofChangesin Shareholders’EquityandConsolidatedStatement ofCashFlows,whichdisclaimerwasadirectresult ofBDO’sinabilitytogainadequatecomfortonthe 31August2022StatementofFinancialPosition. TheBoardunderstandsandsharesshareholders’ frustrationsregardingthedelaysexperiencedin publishingtheCompany’soutstandingannualand interimaccounts.InaccordancewiththeAICCorporate GovernanceCode,theCompanyintendstoconsult furtherwithrelevantshareholderstounderstandthe reasonsbehindtheresult,beyonddiscussionsthat havealreadytakenplacepriortotheAnnualGeneral Meeting(andGeneralMeetingon5December2024 whereshareholdersvotedagainsttheresolutionto receivetheCompany’sannualreportandaccountsfor theyearended31August2022).  HomeREITplc | AnnualReport | Fortheyearended31August2024     55 Directors’ remuneration policy Introduction TheDirectors’RemunerationPolicyisputtoa shareholders’voteeverythreeyearsandinanyyear ifthereistobeachangeinthepolicy.Becauseofthe changesinBoardcompositionandnewcompensation structures,aresolutiontoapprovetheupdated RemunerationPolicywasapprovedattheCompany’s AGMheldon20February2025.Theresolutionwas passed,andtheRemunerationPolicyprovisionssetout belowwillapplyuntiltheyarenextputtoshareholders forrenewalofthatapproval.Intheeventofany proposedmaterialvariationtothepolicy,shareholder approvalwillbesoughtfortheproposednewpolicy priortoitsimplementation. Policy Fees TheDirectors’feesaredeterminedwithinthelimitsset outintheArticlesandtheyarenoteligibleforbonuses, pensionbenefits,sharebenefits,shareoptions,long- termincentiveschemesorotherbenefits. TheDirectors’feesarepaidatfixedannualratesand, otherthanthefeeforMichaelO’Donnellasdiscussed onpage52,donothaveanyvariableorperformance relatedelements.TheBoardmaydeterminethat additionalremunerationmaybepaid,fromtimeto time,toanyoneormoreDirectorsintheeventsuch DirectororDirectorsarerequestedbytheBoard toperformextraorspecialservicesonbehalfof theCompany. Thenon-executiveDirectorsshallbeentitledtofees atsuchratesasdeterminedbytheBoardsubjecttothe maximumaggregatefeelimitof£500,000setoutin theArticles. TheDirectorsshallalsobeentitledtobereimbursed forallexpensesincurredinperformanceoftheir duties.Theseexpensesareunlikelytobeofa significantamount.Feesarepayablefromthedateof appointmentasaDirectoroftheCompanyandcease ondateofterminationofappointment. TheBoardwillnotpayanyincentivefeestoany persontoencouragethemtobecomeadirectorof theCompany.TheBoardmay,however,payfeesto externalagenciestoassisttheBoardinthesearchand selectionofDirectors. Current and future policy Component Director Purposeofreward Operation Annual fee ChairofBoard Feesforservicesaschairofaplc DeterminedbytheBoard Annual fee OtherDirectors Feesforservicesasnon-executive directorsofaplc DeterminedbytheBoard Additional fee ChairofAuditCommittee SeniorIndependent Director Foradditionalresponsibilitiesand timecommitment Foradditionalresponsibilitiesand timecommitment DeterminedbytheBoard DeterminedbytheBoard Expenses AllDirectors Reimbursementofexpensesincurred intheperformanceofduties Submissionofappropriate supportingdocumentation NoDirectorisinvolvedinsettingtheirown remunerationandtheCompany’sconflictofinterest policyandprocedures(seepage40)applytotheBoard whenundertakingtheirduties. Statement of consideration of conditions elsewhere in the Company Duringtheperiodunderreview,theCompanyhadno employees.Therefore,theprocessofconsultingwith employeesonthesettingoftheremunerationpolicy duringtheperiodunderreviewwasnotapplicable. Review TheDirectors’remunerationwillbereviewedonan annualbasisbytheBoardandanychangesaresubject toapprovalbytheBoard. TheremunerationpayabletotheDirectorswill takeintoaccountanumberoffactors,interalia,the experienceoftheDirectors,thecomplexityofthe Companyandprevailingmarketratesfortherealestate investmenttrustsector. Governance Directors’ remuneration report—continued 56     HomeREITplc | AnnualReport | Fortheyearended31August2024 Directors’ service contracts TheDirectorsdonothaveservicecontractswith theCompany. TheDirectorsarenotentitledtocompensationon lossofoffice.TheDirectorshaveappointmentletters whichdonotprovideforanyspecificterm.However, inaccordancewiththeAICCode,theyaresubjectto annualre-election. Statement of consideration of shareholders’ views TheCompanyiscommittedtoengaginginongoing shareholderdialogueandtakesanactiveinterestin votingoutcomes.Iftherearesubstantialvotesagainst resolutionsinrelationtoDirectors’remuneration, theGroupwillseekthereasonsforanysuchvoteand willdetailanyresultingactionsinthenextDirectors’ remunerationreport. Approval TheDirectors’RemunerationReportwasapprovedby theBoardandsignedonitsbehalfby: Michael O’Donnell Chair 17October2025 Governance Director’s remuneration report—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     57 TheDirectorsareresponsibleforpreparingtheAnnual Reportandthefinancialstatementsinaccordancewith applicablelawandregulations. CompanylawrequirestheDirectorstoprepare financialstatementsforeachfinancialyear.Under thatlaw,theyarerequiredtopreparetheGroup financialstatementsinaccordancewithUKadopted internationalaccountingstandardsandhaveelected topreparetheCompanyfinancialstatementsin accordancewithUnitedKingdomGenerallyAccepted AccountingPractice(UnitedKingdomAccounting Standards,comprisingFRS101“ReducedDisclosure Framework”,andapplicablelaw). Undercompanylaw,theDirectorsmustnotapprove thefinancialstatementsunlesstheyaresatisfiedthat theygiveatrueandfairviewofthestateofaffairsof theGroupandtheCompanyandoftheprofitorlossof theGroupandtheCompanyforthatperiod. Inpreparingthesefinancialstatements,theDirectors arerequiredto: • selectsuitableaccountingpoliciesandthenapply themconsistently; • makejudgementsandaccountingestimatesthat arereasonableandprudent; • statewhetherapplicableUK-adoptedinternational accountingstandardshavebeenfollowedforthe GroupfinancialstatementsandUnitedKingdom AccountingStandards,comprisingFRS101, havebeenfollowedfortheCompanyfinancial statements,subjecttoanymaterialdepartures disclosedandexplainedinthefinancialstatements; and • Preparethefinancialstatementsonthegoing concernbasisunlessitisappropriatetopresume thattheGroupandtheCompanywillcontinuein business.AsstatedinNote1totheConsolidated andCompanyFinancialStatementsthedirectorsdo notconsidertheGrouporCompanytobeagoing concernandhavepreparedthefinancialstatements onabasisotherthanthatofagoingconcern. TheDirectorsareresponsibleforkeepingadequate accountingrecordsthataresufficienttoshowand explaintheGroup’sandCompany’stransactionsand disclosewithreasonableaccuracyatanytimethe financialpositionoftheGroupandtheCompanyand enablethemtoensurethatthefinancialstatements complywiththeCompaniesAct2006.Theyarealso responsibleforsafeguardingtheassetsoftheGroup andtheCompanyandhencefortakingreasonable stepsforthepreventionanddetectionoffraudand otherirregularities. Website publication TheDirectorsareresponsibleforensuringtheAnnual Reportandthefinancialstatementsaremadeavailable onawebsite.Financialstatementsarepublishedon theGroup’swebsiteinaccordancewithlegislationin theUnitedKingdomgoverningthepreparationand disseminationoffinancialstatements,whichmayvary fromlegislationinotherjurisdictions.Themaintenance andintegrityoftheGroup’swebsitehasbeendelegated toAEW,buttheDirectors’responsibilityextends totheongoingintegrityofthefinancialstatements containedtherein. Directors’responsibilitiespursuanttoDTR4 TheDirectors,tothebestoftheirknowledge, confirmthat: • theGroupfinancialstatements,whichhave beenpreparedinaccordancewithUKadopted internationalaccountingstandards,giveatrueand fairviewoftheassets,liabilities,financialposition andprofitoftheGroup; • theCompanyfinancialstatements,whichhave beenpreparedinaccordancewithUnitedKingdom AccountingStandards,comprisingFRS101,give atrueandfairviewoftheassets,liabilitiesand financialpositionoftheCompany;and • theAnnualReportincludesafairreviewofthe developmentandperformanceofthebusinessand thefinancialpositionoftheGroupandtheCompany, togetherwithadescriptionoftheprincipalrisksand uncertaintiesthattheyface. TheDirectorsconsiderthattheAnnualReport andfinancialstatements,takenasawhole,are fair,balancedandunderstandableandprovidethe informationnecessaryforshareholderstoassessthe Group’sandCompany’spositionandperformance, businessmodelandstrategy. Approval ThisDirectors’responsibilitiesstatementwas approvedbytheBoardandsignedonitsbehalfby: Michael O’Donnell Chair 17October2025 Governance Statement of Directors’ responsibilities 58     HomeREITplc | AnnualReport | Fortheyearended31August2024 Governance Independent auditor’s report to the members of Home REIT plc QualifiedopinionontheFinancialStatementsandthe correspondingfigures Inouropinion,exceptforthepossibleeffectsofthe matterdescribedintheBasisforqualifiedopinion sectionofourreport,thefinancialstatements: • giveatrueandfairviewofthestateoftheGroup’s andoftheCompany’saffairsasat31August2024 andoftheGroup’slossfortheyearthenended; • theGroupfinancialstatementshavebeen properlypreparedinaccordancewithUKadopted internationalaccountingstandards; • theCompanyfinancialstatementshavebeen properlypreparedinaccordancewithUnited KingdomGenerallyAcceptedAccountingPractice; and • thefinancialstatementshavebeenprepared inaccordancewiththerequirementsofthe CompaniesAct2006. WehaveauditedthefinancialstatementsofHome REITplc(“theCompany”)anditssubsidiaries(together, the“Group”)fortheyearended31August2024 whichcomprisetheConsolidatedStatementof ComprehensiveIncome,theConsolidatedand CompanyStatementsofFinancialPosition,the ConsolidatedandCompanyStatementsofChanges inShareholders’Equity,theConsolidatedStatement ofCashFlowsandnotestothefinancialstatements, includingasummaryofsignificantaccounting policies.Thefinancialreportingframeworkthat hasbeenappliedinthepreparationoftheGroup financialstatementsisapplicablelawandUK-adopted internationalaccountingstandards.Thefinancial reportingframeworkthathasbeenappliedinthe preparationoftheCompanyfinancialstatements isapplicablelawandUnitedKingdomAccounting Standards,includingFinancialReportingStandard 101ReducedDisclosureFramework(UnitedKingdom GenerallyAcceptedAccountingPractice). Basisforqualifiedopinion Includedwithinrentalincomeof£37.7misrevenuefrom propertiesundermanagementagreementsof£5.75m (seenote4).Duetothenatureofthearrangement betweentheentityandsomeofitspropertymanagers andalackofleasedocumentationwiththeunderlying occupant,wehavebeenunabletoobtainsufficient appropriateauditevidenceastotheaccuracyand completenessofthisrevenuefrompropertiesunder managementagreements.Consequentlythere isalimitationofthescopeofourauditinrespect ofrevenuefrompropertiesundermanagement agreementsof£5.75mandwrite-offoftherelated debtorbalance. Asaresultofourdisclaimerofopinioninrespect oftheFinancialStatementsfortheyearended 31August2022,wewereunabletoexpressanopinion ontheConsolidatedStatementofComprehensive Income,theConsolidatedCashFlowStatement andtheConsolidatedandCompanyStatementsof ChangesinShareholders’Equityfortheyearended 31August2023,andtheassociatednotestothe ConsolidatedCashFlowStatementandConsolidated andCompanyStatementsofChangesinShareholders’ Equity.Ouropiniononthecurrentperiod’sfinancial statementsisthereforefurthermodifiedbecause ofthepossibleeffectsoftheabovemattersonthe comparabilityofthecurrentperiod’sConsolidated StatementsofComprehensiveIncome,Consolidated StatementofCashFlowsandConsolidatedand CompanyStatementsofChangesinEquitywiththe correspondingfigures. Weconductedourauditinaccordancewith InternationalStandardsonAuditing(UK)(ISAs(UK)) andapplicablelaw.Ourresponsibilitiesunderthose standardsarefurtherdescribedintheAuditor’s responsibilitiesfortheauditofthefinancialstatements sectionofourreport.Webelievethattheaudit evidencewehaveobtainedissufficientandappropriate toprovideabasisforourqualifiedopinion. Independence FollowingtherecommendationoftheAudit Committee,wewereappointedbythedirectorson 17September2020toauditthefinancialstatements fortheperiodfromincorporationto31August2021 andsubsequentfinancialperiods.Theperiodoftotal uninterruptedengagementincludingretendersand reappointmentsisfouryears,coveringtheperiod from19August2020to31August2024.Weremain independentoftheGroupandtheCompanyin accordancewiththeethicalrequirementsthatare relevanttoourauditofthefinancialstatementsinthe UK,includingtheFRC’sEthicalStandardasapplied tolistedpublicinterestentities,andwehavefulfilled ourotherethicalresponsibilitiesinaccordancewith theserequirements.Thenon-auditservicesprohibited bythatstandardwerenotprovidedtotheGroupor theCompany.  HomeREITplc | AnnualReport | Fortheyearended31August2024     59 Emphasisofmatter–financialstatementsprepared on a basis other than going concern WedrawyourattentiontoNote1totheConsolidated FinancialStatementsandNote1totheCompany FinancialStatementswhichexplainthatasaresult ofthethreatenedlitigation,theFCAinvestigation andtheDirectors’expectationforanorderlywind- downoftheGroupandCompany’soperations,the Directorsconsideritappropriatetoadoptabasisof accountingotherthanasagoingconcerninpreparing theConsolidatedandCompanyFinancialStatements. Accordingly,thesefinancialstatementshavebeen preparedonabasisotherthangoingconcernas describedinNote1totheConsolidatedFinancial StatementsandNote1totheCompanyFinancial Statements.Ouropinionisnotmodifiedinrespect ofthismatter. Overview Key audit matters Key Audit Matter 2024 2023 Investmentpropertyvaluations P P Propertyacquisitioncost,Seller’sWorksand leaseinducements O P Revenuerecognition P P Managementoverrideofcontrols O P Tenantreceivables O P Relatedpartytransactions O P Annualreportpreparationanddisclosures O P Materiality Groupfinancialstatementsasawhole £3.8mbasedon2%ofnetassets An overview of the scope of our audit OurGroupauditwasscopedbyobtainingan understandingoftheGroupanditsenvironment, includingtheGroup’ssystemofinternalcontrol,and assessingtherisksofmaterialmisstatementinthe financialstatements.Wealsoaddressedtheriskof managementoverrideofinternalcontrols,including assessingwhethertherewasevidenceofbiasby theDirectorsthatmayhaverepresentedariskof materialmisstatement. TheGroupoperatesintheUnitedKingdominone segment,investmentproperty,structuredthrough anumberofsubsidiaryentities.Wedeterminedthat theGroupoperatesasasinglecomponentandassuch theauditapproachincludedundertakingauditwork onthekeyrisksofmaterialmisstatementsidentified fortheGroup.TheGroupauditengagementteam performedfullscopeauditsinordertoissuetheGroup andCompanyauditopinion,includingundertakingall oftheauditworkontherisksofmaterialmisstatement identifiedinthekeyauditmatterssectionbelow.As aresultofourauditapproach,weplannedtoobtain coverageof100%ofrentalincomeand100%of investmentpropertyvaluations. Climatechange Ourworkontheassessmentofpotentialimpactson climate-relatedrisksontheGroup’soperationsand financialstatementsincluded: • EnquiriesandchallengeoftheInvestmentAdviser andtheGroup’sindependentpropertyvaluerto understandtheactionstheyhavetakentoidentify climate-relatedrisksandtheirpotentialimpactson thefinancialstatementsandadequatelydisclose climate-relatedriskswithintheannualreport; • Ourownqualitativeriskassessmenttakinginto considerationthesectorinwhichtheGroup operatesandhowclimatechangeaffectsthis particularsectorandpropertyassetclass; • ReviewoftheminutesofBoard,AuditCommittee andothercommitteemeetingsandotherpapers relatedtoclimatechangeandperformedarisk assessmentastohowtheimpactoftheGroup’srisk assessmentmayaffectthefinancialstatementsand ouraudit; • Wealsoassessedtheconsistencyofmanagement’s disclosuresincludedas‘StatutoryOther Information’withintheStrategicReportwithour knowledgeobtainedfromtheaudit. Governance Independent auditor’s report to the members of Home REIT plc—continued 60     HomeREITplc | AnnualReport | Fortheyearended31August2024 Basedonourriskassessmentprocedures,wedidnot identifytheretobeanyKeyAuditMattersmaterially impactedbyclimate-relatedrisks. Keyauditmatters Keyauditmattersarethosemattersthat,inour professionaljudgement,wereofmostsignificancein ourauditofthefinancialstatementsofthecurrent periodandincludethemostsignificantassessed risksofmaterialmisstatement(whetherornotdue tofraud)thatweidentified,includingthosewhichhad thegreatesteffecton:theoverallauditstrategy,the allocationofresourcesintheaudit,anddirectingthe effortsoftheengagementteam.Thesematterswere addressedinthecontextofourauditofthefinancial statementsasawhole,andinformingouropinion thereon,andwedonotprovideaseparateopinionon thesematters. Thekeyauditmattersinclude,inadditiontothe matterssetoutbelow,themattersoutlinedintheBasis forqualifiedopinionsectionofourreportabove.Thisis notacompletelistofallrisksidentifiedbyouraudit. Key audit matter How the scope of our audit addressed the key audit matter Investment property valuations RefertoNotes2to3 totheConsolidated FinancialStatements andNotes2to3tothe CompanyFinancial Statementsin relationtosignificant judgements, estimatesand accountingpolicies. RefertoNote9tothe ConsolidatedFinancial StatementsandNote 5totheCompany FinancialStatements inrelationto investmentproperties. Thevaluationofinvestment propertyrequiressignificant judgementandestimation bytheDirectorsand theindependentvaluer appointedbytheCompany andisthereforeconsidered akeyauditmatterduetothe subjectivenatureofcertain assumptionsinherentin eachvaluation. Wherethevaluerhasdeemed apropertytobeunhabitable orthetenanttobeofvery poorcovenantstrength, theyhaveassumedthat ahypotheticalpurchaser followingduediligencewould havedisregardedthelease andvaluedthemonthebasis ofMarketValue–Vacant Possession(“MV-VP”).In thisscenariovaluationsare basedoncomparablemarket transactionsconsidering primarilycapitalvalues. Wherethevaluerhasdeemeda propertytobeinareasonable condition,capableofbeneficial occupationandlettoatenant whoislikelytomeettheir obligationsintheshortterm, thevaluerhasadoptedan investmentapproach.Inthis scenario,thevaluermakes assumptionsastoyield, thelengthofcapitalisation periodandtheMV-VPvalue onreversionattheendofthe capitalisationperiod. Experienceoftheindependentpropertyvaluerand relevanceofitswork • Weobtainedthevaluationreportpreparedbythe independentpropertyvaluer,JonesLangLasalle Limited(‘JLL’),anddiscussedthebasisofthe valuationswiththem.Wedeterminedwhetherthe basisofthevaluationswasinaccordancewiththe requirementsofaccountingstandards. • WeassessedJLL’sexperience,qualifications, competency,independenceandbasisofthe valuation. • Weobtainedacopyoftheengagementletterwith JLLandreviewedforanylimitationsinscopeorfor evidenceofmanagementbias. Dataprovidedtotheindependentvaluer(“JLL”) • WecheckedtheunderlyingdataprovidedtoJLL bytheDirectors.Thisdataincludedinputssuchas currentrentandleaseterm,andweagreedasample totheexecutedleaseagreementsaspartofour auditwork. • JLLinspectedasampleofpropertiesinternallyand externallybutreliedontheDirectors’assessment ofthephysicalconditionofthepropertiesacross theportfolio.TheDirectorsengagedtheirown expert,VibrantEnergySolutionsLtd(“Vibrant”), toreviewtheinternalandexternalphysicalcondition ofcertainoftheGroup’sproperties(seeNote 9totheConsolidatedFinancialStatementson page86).TheinspectionsbyVibranttookplace betweenAugust2023andMay2024.Weassessed theexperience,qualifications,competencyand independenceoftheDirectors’expert,Vibrant.In addition,weobservedVibrantperformingasite inspectiontoenableustoassesstheprocessaspart ofourevaluationoftheirwork.Weconsideredthe levelofcoveragethattheDirectorsachievedthrough theirprogrammeofinspectionsandtestedasample ofdataprovidedtoJLLtotheinspectionreportto testtheaccuracyofdata,suchastheconditionofthe propertyandthenumberofbedrooms. Governance Independent auditor’s report to the members of Home REIT plc—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     61 Key audit matter How the scope of our audit addressed the key audit matter Investment property valuations continued Anyinputinaccuracies(such asthephysicalconditionof properties)orunreasonable basesusedinthevaluation judgements(suchasinrespect ofvacantvalueandyield profileapplied)couldresultin amaterialmisstatementof theConsolidatedStatement ofComprehensiveIncomeand theConsolidatedStatementof FinancialPosition. Thereisalsoariskoffraudin relationtothevaluationof thepropertyportfoliowhere theDirectorsmayinfluence thesignificantjudgements andestimatesinrespectof propertyvaluationsinorderto managemarketexpectations. Assumptionsandestimatesusedbytheindependent propertyvaluer(“JLL”)–MV-VPbasis • Forthosepropertiesthatweresoldaftertheyear-end wecomparedthesalespricesachievedforproperties soldpostyear-endtotheAugust2024JLLvaluation. Wherethedifferencewasoutsideofourexpected range,wediscussedthiswithJLLandchallengedthe year-endvaluationaccordingly. • Forasampleoftheremainingproperties,withthe assistanceofourin-houseRICSqualifiedvaluation experts,wesetexpectationforthevaluationtaking intoaccountmovementinhousepriceindicesin theyear,themarketcomparableevidenceprovided byJLL(whichweindependentlycorroborated),our ownmarketresearchofsoldpropertypricesusing availableindependentindustrydata,reportsand comparabletransactionsinthemarket,aswellasthe Group’sinyearandpostyear-endauctionsalesfor similarpropertiesinthesamelocality. • Wherethepropertyvaluefelloutsideexpectedrange, wechallengedJLLonthesemattersandobtained supportingexplanationsanddocumentationfor thevariances. Governance Independent auditor’s report to the members of Home REIT plc—continued 62     HomeREITplc | AnnualReport | Fortheyearended31August2024 Key audit matter How the scope of our audit addressed the key audit matter Investment property valuations continued Assumptionsandestimatesusedbytheindependent propertyvaluerJLL–investmentapproach • Weobtainedthediscountedcashflow(“DCF”)model, preparedbyAEWonbehalfoftheDirectors,which hadbeenproducedtomirrorJLL’smodelforthose propertiesdeemedtobeinareasonablecondition, capableofbeneficialoccupationandlettoatenant whoislikelytomeettheirobligationsintheshort term.WecomparedthevaluationpertheDirectors’ modeltoJLL’svaluationsandinvestigatedany differencegreaterthan10%eitherindividuallyorin aggregate.Wedeterminedthatathresholdof10% wasappropriatebasedonRICSguidancewhichstates thatthepermittedmarginoferrorwhencarryingout avaluationofpropertybasedoncaselawreferstoa marginoferrorbetween10%and15%dependingon thefacts. • Forallpropertieswetestedthekeyinputsinto themodel. • Forasampleofproperties,weperformedthe proceduressetoutaboveinrelationtoMV-VP properties(asMV-VPwasusedastheexitvalue withinthemodel). • Withassistancefromourin-houseRICSqualified valuationexperts,weconsideredtherelationship betweenMV-VPvalueandfairvalue. • Wediscussedtheassumptionsusedwithboth AEWandJLL.Wherethevaluationwasoutsideof ourexpectedrange,wechallengedJLLonspecific assumptionsandcorroboratedtheirexplanations whererelevant,includingagreeingtothirdparty evidence. ForasampleofpropertieswhereJLL’sassumptionabout theconditionofthepropertywasdifferentfromthat at31August2023,weobtainedacopyoftheVibrant inspectionreporttoconfirmthatconditionassumption wasappropriate. Weconsideredtheadequacyofthedisclosureswith regardstoinvestmentpropertyvaluations. KeyObservations Basedonourworkwehavenotidentifiedanymaterial instanceswhichmayindicatethattheassumptions adoptedbytheDirectorsinthevaluationwere unreasonableorthatthemethodologyapplied wasinappropriateinrespectofthevaluationsasat 31August2024. Governance Independent auditor’s report to the members of Home REIT plc—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     63 Key audit matter How the scope of our audit addressed the key audit matter Revenue recognition RefertoNotes2to3 totheConsolidated FinancialStatements andNotes2to3tothe CompanyFinancial Statementsin relationtosignificant judgements, estimatesand accountingpolicies. RefertoNote4tothe ConsolidatedFinancial Statementsinrelation toRentalIncome. TheGroupreceivesrental incomefromitsproperty portfolio.Thiscomprises revenueinvoicedinaccordance withleaseagreementsand incomefrompropertiesunder managementagreements. Thereisariskthat rentalincomeisnot supportedunderlying tenancyagreementsoris inappropriatelyrecordedas aresultoferrorsinrecording leasedetailsinthetenancy schedulesorinappropriate judgementsbeingapplied bymanagement.Thisis thereforeanareaofsignificant auditeffort. Forthesereasonsweconsider therecognitionofrevenueto beakeyauditmatter. Revenueinvoicedinaccordancewithleases Wesetexpectationsfortherentalincomeinvoicedin accordancewithleaseagreementsintheperiodbased onthetenancyschedulesasat31August2023and 31August2024.Wecomparedourexpectationsforthe totalrentalincomeintheperiodtothatincludedinthe ConsolidatedFinancialStatementsandinvestigatedthe resultingdifferences. Weobtainedthetenancyscheduleat31August2024 andagreedasampleofamountstosupportinglease documentation. Weobtainedalistingofjournalspostedtorevenue outsideofthetransactionalrevenueentriesand obtainedsupportingexplanation/documentationas applicabletoensurethatthejournalwasappropriate. Keyobservations Basedonourwork,wehavenotidentifiedanymaterial misstatementrelatedtotherecognitionofrevenuefrom leaseagreements. Incomefrompropertiesundermanagementagreements WeobtainedacopyofGroup’spropertydatabasewhich containsdetailsofthedateonwhichtheoriginaltenants surrenderedtheleaseandthepropertywastransferred toapropertymanager.Wetestedtheintegrityofthis schedulebyreconcilingtheopeningpositiontotheprior yeartenancyscheduleandagreeingasampleoflease surrenderstosupportingdocumentation. Weselectedasampleofpropertiesfromthedatabase (forcompletenessandaccuracy),andasampleofentries fromthegeneralledger(forexistenceandaccuracy)and attemptedtoagreetheamountofrevenuerecognised fortheindividualpropertysampledfromthedateof transfertothepropertymanagerto31August2024 tocashreceiptsand,wherepossible,supporting documentationsuchastenancyagreements. Inanumberofcasesmanagementwereunabletoprovide anysignedtenancyagreementorsimilarevidenceto supporttheaccuracyandcompletenessoftherevenue. Governance Independent auditor’s report to the members of Home REIT plc—continued 64     HomeREITplc | AnnualReport | Fortheyearended31August2024 Key audit matter How the scope of our audit addressed the key audit matter Revenue recognition continued Wealsoreviewedacalculationpreparedbymanagement whichattemptedtoshowthemaximumincome receivablefromthesepropertiesfortheperiodfrom dateoftransferto31August2024basedonExpected RentalValues(ERVs)andthenumberofdaysthe propertieswereavailableforoccupation.Howeverdueto theinherentuncertaintyrelatedtotheuseofERVs,and thelackofevidenceavailabletosupportassumptions maderegardingvacantproperties,wewereunableto takeanyassuranceovercompletenessandaccuracyof incomefrompropertiesundermanagement. KeyObservations OurobservationsandfindingsaresetoutintheBasisfor qualifiedofopinionsectionabove. Our application of materiality Weapplytheconceptofmaterialitybothinplanningandperformingouraudit,andinevaluatingtheeffectof misstatements.Weconsidermaterialitytobethemagnitudebywhichmisstatements,includingomissions,could influencetheeconomicdecisionsofreasonableusersthataretakenonthebasisofthefinancialstatements. Inordertoreducetoanappropriatelylowleveltheprobabilitythatanymisstatementsexceedmateriality,we usealowermaterialitylevel,performancemateriality,todeterminetheextentoftestingneeded.Importantly, misstatementsbelowtheselevelswillnotnecessarilybeevaluatedasimmaterialaswealsotakeaccountofthe natureofidentifiedmisstatements,andtheparticularcircumstancesoftheiroccurrence,whenevaluatingtheir effectonthefinancialstatementsasawhole. Governance Independent auditor’s report to the members of Home REIT plc—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     65 Basedonourprofessionaljudgement,wedeterminedmaterialityforthefinancialstatementsasawholeand performancematerialityasfollows: Groupfinancialstatements £m Companyfinancialstatements £m Materiality 3.8 3.4 Basis for determining materiality MaterialityfortheGroup’sandCompany’sfinancialstatementswassetat2%of netassets.Thisprovidesabasisfordeterminingthenatureandextentofourrisk assessmentprocedures,identifyingandassessingtheriskofmaterialmisstatement anddeterminingthenatureandextentoffurtherauditprocedures. Rationale for the benchmark applied DuetotheuniquecircumstancesthattheGroupisnowin,theusersofthefinancial statementsprimaryfocusislikelytobeonthenetassetvalueoftheGroupas shareholderslooktorealisetheremainingvalueoftheGroup.Nofurtheracquisitions willbemadebytheGroupandthustheremainingvalueisbaseduponthevalueofthe investmentproperties,lesstheoutstandingborrowingsandliabilities. WedeterminedthatthesamemeasureastheGroupwasappropriatefortheCompany (cappedat90%ofGroupmateriality). Performance materiality 1.9 1.7 Basis for determining performance materiality Performancematerialityissetatanamounttoreducetoanappropriatelowlevelthe probabilitythattheaggregateofuncorrectedandundetectedmisstatementsexceeds materiality.Onthebasisofourriskassessment,togetherwithourassessmentofthe Group’soverallcontrolenvironment,ourjudgementwasthatoverallperformance materialityfortheGroupshouldbe50%(Company:50%)ofmateriality. WedeterminedthatthesamemeasureastheGroupwasappropriatefortheCompany. Rationale for the percentage applied forperformance materiality Wedeterminedthat50%ofmaterialitywouldbeappropriatebasedonourrisk assessment,togetherwithourassessmentoftheGroup’sandCompany’soverallcontrol environment,thenumberofaccountswhereamountsaresubjecttoestimationandthe expectedtotalvalueofknownandlikelymisstatementsbasedonpreviousexperience. Reportingthreshold WeagreedwiththeAuditCommitteethatwewouldreporttothemallindividualauditdifferencesinexcessof £76,000.Wealsoagreedtoreportdifferencesbelowthisthresholdthat,inourview,warrantedreportingon qualitativegrounds. Other information TheDirectorsareresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincluded intheAnnualReportotherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthe financialstatementsdoesnotcovertheotherinformationand,excepttotheextentotherwiseexplicitlystated inourreport,wedonotexpressanyformofassuranceconclusionthereon.Ourresponsibilityistoreadtheother informationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancial statementsorourknowledgeobtainedinthecourseoftheaudit,orotherwiseappearstobemateriallymisstated. Ifweidentifysuchmaterialinconsistenciesorapparentmaterialmisstatements,wearerequiredtodetermine whetherthisgivesrisetoamaterialmisstatementinthefinancialstatementsthemselves.If,basedontheworkwe haveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredto reportthatfact. AsdescribedintheBasisforqualifiedopinionsectionofourreport,wewereunabletosatisfyourselvesconcerning thecompletenessandaccuracyofrevenuefrompropertiesundermanagementagreementsandrelateddebtor write-offs,orthecomparabilityofthecurrentperiod’sfiguresandthecorrespondingfigures.Wehaveconcluded thatwheretheotherinformationreferstotherevenuefrompropertiesundermanagementagreementsorrelated balancessuchasdebtorwrite-offs,ortoamountsrelatedtotheStatementsofComprehensiveIncome,Cash FlowsandChangesinEquityfortheyearended31August2023,itmaybemateriallymisstatedforthesamereason. Governance Independent auditor’s report to the members of Home REIT plc—continued 66     HomeREITplc | AnnualReport | Fortheyearended31August2024 Corporate governance statement TheUKListingRulesrequireustoreviewtheDirectors’statementinrelationtogoingconcern,longer-term viabilityandthatpartoftheCorporateGovernanceStatementrelatingtotheCompany’scompliancewiththe provisionsoftheUKCorporateGovernanceCodespecifiedforourreview. ExceptforthepossibleeffectsofthemattersdescribedintheBasisforqualifiedopinionsectionofourreport above,inouropinionabove,basedontheworkundertakenaspartofouraudit,wehaveconcludedthateachofthe followingelementsoftheCorporateGovernanceStatementismateriallyconsistentwiththeFinancialStatements: Going concern and longer-term viability • InrelationtotheCompany’sreportingonhowithasappliedtheUKCorporate GovernanceCode,otherthanthe‘Emphasisofmatter–FinancialStatements preparedonabasisotherthangoingconcern’includedabove,wehavenothing elsethatismaterialtoaddordrawattentiontoinrelationtothestatementonthe Directors’assessmentofthelonger-termviabilityoftheCompanyandwhetherthe Directorsconsidereditappropriatetoadoptthebasisotherthangoingconcern; and • TheDirectors’explanationastotheirassessmentoftheGroup’sprospects,the periodthisassessmentcoversandwhytheperiodisappropriatesetoutonpage29. Other Code provisions • Directors’statementonfair,balancedandunderstandablesetoutonpage57; • Directors’confirmationthattheyhavecarriedoutarobustassessmentofthe emergingandprincipalriskssetoutonpage23; • ThesectionoftheAnnualReportthatdescribesthereviewofeffectivenessofrisk managementandinternalcontrolsystemssetoutonpage17;and • ThesectiondescribingtheworkoftheAuditCommitteesetoutonpages42to47. Governance Independent auditor’s report to the members of Home REIT plc—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     67 OtherCompaniesAct2006reporting Basedontheresponsibilitiesdescribedbelowandourworkperformedduringthecourseoftheaudit,weare requiredbytheCompaniesAct2006andISAs(UK)toreportoncertainopinionsandmattersasdescribedbelow. Strategic report and Directors’ report ExceptforthepossibleeffectsofthemattersdescribedintheBasisforqualified opinionsectionofourreportabove,inouropinion,basedontheworkundertakeninthe courseoftheaudit: • theinformationgivenintheStrategicreportandtheDirectors’reportforthe financialyearforwhichthefinancialstatementsarepreparedisconsistentwiththe financialstatements;and • theStrategicreportandtheDirectors’reporthavebeenpreparedinaccordance withapplicablelegalrequirements. ExceptforthepossibleeffectsofthemattersdescribedintheBasisforqualifiedopinion sectionofourreportabove,inthelightoftheknowledgeandunderstandingofthe GroupandCompanyanditsenvironmentobtainedinthecourseoftheaudit,wehave notidentifiedmaterialmisstatementsintheStrategicreportortheDirectors’report. Directors’ remuneration Inouropinion,thepartoftheDirectors’remunerationreporttobeauditedhasbeen properlypreparedinaccordancewiththeCompaniesAct2006. Corporate governance statement ExceptforthepossibleeffectsofthemattersdescribedintheBasisforqualified opinionsectionofourreportabove,inouropinion,basedontheworkundertakenin thecourseoftheaudittheinformationaboutinternalcontrolandriskmanagement systemsinrelationtofinancialreportingprocessesandaboutsharecapitalstructures, givenincompliancewithrules7.2.5and7.2.6intheDisclosureGuidanceand TransparencyRulessourcebookmadebytheFinancialConductAuthority(theFCA Rules),isconsistentwiththefinancialstatementsandhasbeenpreparedinaccordance withapplicablelegalrequirements. ExceptforthepossibleeffectsofthemattersdescribedintheBasisforqualified opinionsectionofourreportabove,inthelightoftheknowledgeandunderstanding oftheGroupandtheCompanyanditsenvironmentobtainedinthecourseoftheaudit, wehavenotidentifiedanymaterialmisstatementsinthisinformation. ExceptforthepossibleeffectsofthemattersdescribedintheBasisforqualified opinionsectionofourreportabove,inouropinionbasedontheworkundertakeninthe courseoftheauditinformationabouttheCompany’scorporategovernancecodeand practicesandaboutitsadministrative,managementandsupervisorybodiesandtheir committeescomplieswithrules7.2.2,7.2.3and7.2.7oftheFCARules. Wehavenothingtoreportarisingfromourresponsibilitytoreportifacorporate governancestatementhasnotbeenpreparedbytheCompany. Matters on which we arerequiredtoreport byexception ArisingsolelyfromthelimitationofourworkreferredtointheBasisforqualifiedopinion sectionofourreportabove: • wehavenotobtainedalltheinformationandexplanationsthatweconsidered necessaryforthepurposeofouraudit;and • inouropinion,adequateaccountingrecordshavenotbeenkeptbytheCompany. Wehavenothingtoreportinrespectofthefollowingmattersinrelationtowhichthe CompaniesAct2006requiresustoreporttoyouif,inouropinion: • returnsadequateforouraudithavenotbeenreceivedfrombranchesnotvisited byus;or • theCompanyFinancialStatementsandthepartoftheDirectors’remuneration reporttobeauditedarenotinagreementwiththeaccountingrecordsandreturns; or • certaindisclosuresofDirectors’remunerationspecifiedbylawarenotmade. Governance Independent auditor’s report to the members of Home REIT plc—continued 68     HomeREITplc | AnnualReport | Fortheyearended31August2024 Responsibilities of Directors AsexplainedmorefullyintheStatementofDirectors’ Responsibilities,theDirectorsareresponsibleforthe preparationofthefinancialstatementsandforbeing satisfiedthattheygiveatrueandfairview,andforsuch internalcontrolastheDirectorsdetermineisnecessary toenablethepreparationoffinancialstatementsthat arefreefrommaterialmisstatement,whetherdueto fraudorerror. Inpreparingthefinancialstatements,theDirectors areresponsibleforassessingtheGroup’sandthe Company’sabilitytocontinueasagoingconcern, disclosing,asapplicable,mattersrelatedtogoing concernandusingthegoingconcernbasisof accountingunlesstheDirectorseitherintendto liquidatetheGrouportheCompanyortocease operations,orhavenorealisticalternativebuttodoso. Auditor’s responsibilities for the audit of the financialstatements Ourobjectivesaretoobtainreasonableassurance aboutwhetherthefinancialstatementsasawhole arefreefrommaterialmisstatement,whetherdue tofraudorerror,andtoissueanauditor’sreport thatincludesouropinion.Reasonableassuranceis ahighlevelofassurancebutisnotaguaranteethat anauditconductedinaccordancewithISAs(UK)will alwaysdetectamaterialmisstatementwhenitexists. Misstatementscanarisefromfraudorerrorandare consideredmaterialif,individuallyorintheaggregate, theycouldreasonablybeexpectedtoinfluencethe economicdecisionsofuserstakenonthebasisofthese financialstatements. Extenttowhichtheauditwascapableofdetecting irregularities,includingfraud Irregularities,includingfraud,areinstancesofnon- compliancewithlawsandregulations.Wedesign proceduresinlinewithourresponsibilities,outlined above,todetectmaterialmisstatementsinrespect ofirregularities,includingfraud.Theextenttowhich ourproceduresarecapableofdetectingirregularities, includingfraudisdetailedbelow: Non-compliancewithlawsandregulations BasedonourunderstandingoftheGroupandthe industryinwhichitoperates;discussionwithAEW andthosechargedwithgovernance;obtainingand understandingtheGroup’spoliciesandprocedures regardingcompliancewithlawsandregulations;and, weconsideredthesignificantlawsandregulationstobe theUKCompaniesAct2006,theUKListingRulesand theUKRealEstateInvestmentTrust(“REIT”)regime. TheGroupisalsosubjecttolawsandregulations wheretheconsequenceofnon-compliancecould haveamaterialeffectontheamountordisclosures intheFinancialStatements,forexamplethroughthe impositionoffinesorlitigations.Weidentifiedsuch lawsandregulationstobeUKVATregulations. Ourproceduresinrespectoftheaboveincluded: • Weidentifiedareasoflawsandregulationsthat couldreasonablybeexpectedtohaveamaterial effectontheFinancialStatementsfromoursector experiencethroughdiscussionwiththeDirectors andAEW(asrequiredbyauditingstandards). • Wehadregardtolawsandregulationsinareasthat directlyaffecttheFinancialStatementsincluding financialreporting(includingrelatedcompany legislation)andtaxationlegislation.Weconsidered thatextentofcompliancewiththoselawsand regulationsaspartofourproceduresontherelated financialstatementitems. • Wecommunicatedidentifiedlawsandregulations throughoutourteamandremainedalerttoany indicationsofnoncompliancethroughouttheaudit. • WereviewedBoardandAuditCommitteemeeting minutesforanyinstancesofnon-compliancewith lawsandregulations. • WereviewedareportfromtheGroup’sexternal taxadviser,detailingtheactionsthattheGroup hasundertakentoensurecompliance.Withthe assistanceofourinternaltaxexperts,thispaper wasreviewedandtheassumptionschallenged. • Wereviewedlegalexpenditureaccountsto understandthenatureofexpenditureincurredand obtainedconfirmationsfromtheGroup’ssolicitors astoanyongoinglegalaction. Governance Independent auditor’s report to the members of Home REIT plc—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     69 Fraud Weassessedthesusceptibilityofthefinancial statementstomaterialmisstatement,includingfraud. Ourriskassessmentproceduresincluded: • ReviewoftheallegationsmadeintheViceroy ResearchReportandanyfurtherallegationsmade inthepressandtheDirectors’investigations thereinto; • EnquirywithAEWandthosechargedwith governanceregardinganyknownorsuspected instancesoffraud; • ObtaininganunderstandingoftheGroup’spolicies andproceduresrelatingto: – Detectingandrespondingtotherisksoffraud; and – Internalcontrolsestablishedtomitigaterisks relatedtofraud. • Reviewofminutesofmeetingsofthosecharged withgovernanceforanyknownorsuspected instancesoffraud; • Discussionamongsttheengagementteam,with assistancefromourinternalforensicspecialists, astohowandwherefraudmightoccurinthe financialstatements; • Performinganalyticalprocedurestoidentifyany unusualorunexpectedrelationshipsthatmay indicaterisksofmaterialmisstatementduetofraud; and • Consideringremunerationincentiveschemes andperformancetargetsoftheGroup’sexternal advisersandtherelatedfinancialstatementareas impactedbythese. Basedonourriskassessment,weconsideredthefollowingareastobemostsusceptibletofraud: Areaidentified Details and audit response Provisions, commitmentsand contingencies WeareawarethattheGroupiscurrentlythreatenedwithlegalactionandhasalso stateditsintentiontopursuelegalactionagainstvariouspartiesitsuspectsof undertakingwrongdoingagainsttheGroupandCompany.Assuch,thereisarisk thatunrecordedliabilities,provisions,contingentliabilitiesorotherexpensesarenot appropriatelyidentifiedand/orrecordedatthebalancesheetdate. Ourproceduresinrespectoftheaboveincluded: • ObtainingthirdpartyconfirmationsfromallsolicitorsengagedbytheGroup toconfirminformationofopencasesoflitigationandthepotentialfinancial implicationsthereof; • ObtainingtheDirectors’assessmentofthestatusofallcasesoflegalactionagainst themaswellasplannedlegalactionagainstotherpartiesandconsideringwhether anyofthemattersindicatepotentialprovisionsorcontingentliabilitiestobe disclosedinthefinancialstatements; • ReadingminutesofBoardandCommitteemeetings,riskregisters,public announcementsissuedandsolicitors’confirmationsobtainedinordertoidentify anynon-compliancewithlawsandregulations. • Consideredtheadequacyofthedisclosuresinrelationtocontingentliabilities. Going concern Pleaserefertothe“EmphasisofMatter–financialstatementspreparedonabasisother thangoingconcern“sectionabove. Investment Property Valuations; Revenue recognition; and Management override of controls. PleaserefertotherelevantKeyAuditMattersandtheBasisforQualifiedOpinion sectionaboveforourresponsetotheInvestmentPropertyValuationsand RevenueRecognition Weaddressedtheriskofmanagementoverrideofcontrolsbytestingasampleof journalentriesprocessedduringtheyear,whichmetdefinedriskcriteria,agreeingto supportingdocumentationandevaluatingwhethertherewasevidenceofbiasbythe InvestmentManagerthatrepresentedariskofmaterialmisstatementduetofraud. Governance Independent auditor’s report to the members of Home REIT plc—continued 70     HomeREITplc | AnnualReport | Fortheyearended31August2024 Ourauditproceduresweredesignedtorespondtorisks ofmaterialmisstatementinthefinancialstatements, recognisingthattheriskofnotdetectingamaterial misstatementduetofraudishigherthantheriskofnot detectingoneresultingfromerror,asfraudmayinvolve deliberateconcealmentby,forexample,forgery, misrepresentationsorthroughcollusion.Thereare inherentlimitationsintheauditproceduresperformed andthefurtherremovednon-compliancewithlaws andregulationsisfromtheeventsandtransactions reflectedinthefinancialstatements,thelesslikelywe aretobecomeawareofit.Inaddition,theextentto whichtheauditwascapableofdetectingirregularities, includingfraudwaslimitedbythematterdescribedin theBasisforqualifiedopinionsectionofourreport. Afurtherdescriptionofourresponsibilitiesisavailable ontheFinancialReportingCouncil’swebsiteat:www. frc.org.uk/auditorsresponsibilities.Thisdescription formspartofourauditor’sreport. Use of our report ThisreportismadesolelytotheCompany’smembers, asabody,inaccordancewithChapter3ofPart16of theCompaniesAct2006.Ourauditworkhasbeen undertakensothatwemightstatetotheCompany’s membersthosematterswearerequiredtostateto theminanauditor’sreportandfornootherpurpose. Tothefullestextentpermittedbylaw,wedonotaccept orassumeresponsibilitytoanyoneotherthanthe CompanyandtheCompany’smembersasabody,for ourauditwork,forthisreport,orfortheopinionswe haveformed. Thomas Edward Goodworth (SeniorStatutoryAuditor) ForandonbehalfofBDOLLP,StatutoryAuditor London UnitedKingdom 17October2025 BDOLLPisalimitedliabilitypartnershipregisteredin EnglandandWales(withregisterednumberOC305127). Governance Independent auditor’s report to the members of Home REIT plc—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     71 Financial Statements 72 ConsolidatedStatementofComprehensiveIncome 73 ConsolidatedStatementofFinancialPosition 74 ConsolidatedStatementofChangesinShareholders’Equity 75 ConsolidatedStatementofCashFlows 76 NotestotheConsolidatedFinancialStatements 99 CompanyStatementofFinancialPosition 100 CompanyStatementofChangesinShareholders’Equity 101 NotestotheCompanyFinancialStatements 72     HomeREITplc | AnnualReport | Fortheyearended31August2024 Consolidated Statement of Comprehensive Income Fortheyearended Fortheyearended 31August2024 31August2023 Note £’000 £’000 Income Rentalincome 4 41 , 39 0 5 7,6 3 9 Otherincome 12 279 – Impairmentofleaseinducement 4 – (2 2,0 10) Impairmentofrentstraight-lining 4 (3,7 00) (9,0 16) Net rental income 3 7, 9 6 9 26,61 3 Operating expenses Propertyoperatingexpenses 5 (6,78 6) (754) Generalandadministrativeexpenses 5 (19,785) (19,1 59) Provisionforexpectedcreditlossesoftradereceivables 11 (2 9,1 09) (49, 50 2) Total expenses (5 5,6 80) (69,4 1 5) Changeinfairvalueofinvestmentproperty 9 7, 2 2 3 (7 1 , 3 60) Realisedlossondisposalofinvestmentproperties 6 (10,752) – Write-offofSeller’sWorksnotinitiatedorcompleted 11 – (14,178) Operating loss for the year (2 1 , 24 0) (1 28 , 34 0) (Loss)/gainonremeasurementofbankborrowings 10 (369) 14, 537 Financeincome 10 - 2 ,70 6 Financecosts 7 (3,557) (7 , 063) Loss before taxation (2 5, 166) (118,16 0) Taxation 8 – – Loss and total comprehensive loss for the year attributable toshareholders (2 5, 166) (118,16 0) LossperShare–basicanddiluted(penceperShare) 22 (3.18) (14.95) Based on the weighted average number of Shares in issue for the years ended 31 August 2024 and 2023. Allitemsintheabovestatementderivefromcontinuingoperations. Thenotesonpages76to98formpartofthesefinancialstatements. Financial Statements Consolidated Financial Statements HomeREITplc | AnnualReport | Fortheyearended31August2024     73 Consolidated Statement of Financial Position Asat Asat 31August2024 31August2023 Note £’000 £’000 Non-current assets Investmentproperty 9 2 36,32 5 4 0 7, 9 32 Total non-current assets 2 36,3 25 407,932 Current assets Investmentpropertyheldforsale 9 29,107 4,78 8 Tradeandotherreceivables 11 3 ,792 116 Restrictedcash 12 15, 68 8 17,265 Cashandcashequivalents 12 6,1 82 814 Total current assets 54 ,769 22,983 Total assets 29 1 ,09 4 430,915 Current liabilities Bankborrowings 10 91 ,0 38 199 ,500 Tradeandotherpayables 13 8,35 4 14, 547 Total current liabilities 99, 392 214,047 Total liabilities 99, 392 214,047 Net assets 191 ,70 2 216,868 Capital and reserves Sharecapital 15 7 ,906 7 ,906 Sharepremium 16 595,73 3 595,7 3 3 Specialdistributablereserve 17 1 9 0,1 3 0 1 90, 1 30 Accumulatedlosses (602 ,0 6 7) (576, 901) Total capital and reserves attributable to equity holders of the company 1 91 ,702 216,868 Netassetvaluepershare(pps) 23 24. 25p 2 7. 4 3p Thenotesonpages76to98formpartofthesefinancialstatements. The consolidated financial statements of Home REIT plc were approved and authorised for issue by the Board of Directors on 17 October 2025 and signed on its behalf by: Michael O’Donnell Chair Companynumber12822709 Financial Statements Consolidated Financial Statements—continued 74     HomeREITplc | AnnualReport | Fortheyearended31August2024 Consolidated Statement of Changes in Shareholders’ Equity Totalequity Special attributableto Share Share distributable Accumulated ownersofthe capital premium reserve losses company Fortheyearended31August2024 Note £’000 £’000 £’000 £’000 £’000 Openingbalanceat1September2023 7 ,906 59 5,73 3 1 9 0,1 3 0 (576,901) 216,868 Lossandtotalcomprehensivelossforthe yearattributabletoshareholders – – – (2 5,16 6) (2 5,16 6) Balanceat31August2024 7, 9 0 6 595,733 190,130 (602,067)  191,702 Totalequity Special attributableto Share Share distributable Retained ownersofthe capital premium reserve earnings company arended31August2023 Note Fortheye £’000 £’000 £’000 £’000 £’000 Openingbalanceat1September2022 7 , 906 595,7 33 201 ,0 4 0 (458, 7 41) 34 5,93 8 Lossandtotalcomprehensivelossforthe yearattributabletoshareholders – – – (1 18 ,16 0) (1 18 ,16 0) Transaction with owners: Dividenddistribution 18 – – (10,910) – (10,910) Balanceat31August2023 7, 90 6 595,733 190,130 (576,901) 216,868 Thenotesonpages76to98formpartofthesefinancialstatements. Financial Statements Consolidated Financial Statements—continued HomeREITplc | AnnualReport | Fortheyearended31August2024     75 Consolidated Statement of Cash Flows Fortheyearended Fortheyearended 31August2024 31August2023 Note £’000 £’000 Cashflowsfromoperatingactivities Lossfortheyear (2 5,16 6) (11 8,16 0) Changeinfairvalueofinvestmentproperty 9 (7, 2 2 3) 71 ,360 Realisedlossondisposalofinvestmentproperties 10,75 2 – Loss/(gain)onremeasurementofbankborrowings 369 (14,537) Financeincome 10 – (2 ,706) Financecosts 7 3, 557 7, 0 6 3 Effectofstraightlining,leaseinducementsandimpairments 4 – 2 5, 933 Operating result before working capital changes (17,711)  (31 ,0 47) (Increase)/decreaseintradeandotherreceivables 11 (7 2 3) 2 7, 74 5 Decreaseintradeandotherpayables 13 (996) (2, 3 3 4) Netcashflowsusedinoperatingactivities (1 9,4 30) (5,636) Cashflowsfrominvestingactivities Purchaseofinvestmentproperties 9 – (85 ,865) Netcashreceivedonthedisposalofinvestmentproperties 6 2 3, 591 – RetentionsreleasedtotheFundbysolicitors 12 3,1 3 8 1 ,951 Receiptsrelatingtobuildingsconsideredasunhabitable 9 – 548 Netcashgeneratedby/(usedin)investingactivities 26,7 29 (83,366) Cashflowsfromfinancingactivities Dividenddistribution 18 – (10,910) Interestpaid – (5, 39 4) Loanarrangementfeepaid 20 (142) (1 ,56 7) Breakgainonloanrepayment 10 – 2 ,70 6 Cash(transferredto)/releasedfromrestrictedcashaccount (1,789) 30, 46 7 Netcash(usedin)/generatedfromfinancingactivities (1 ,93 1) 15,302 Netincrease/(decrease)incashandcashequivalents 5, 36 8 (73,70 0) Cashandcashequivalentsatbeginningoftheyear 814 74 , 5 1 4 Cash and cash equivalents at end of the year 12 6,182 81 4 Thenotesonpages76to98formpartofthesefinancialstatements. Financial Statements Consolidated Financial Statements—continued 76     HomeREITplc | AnnualReport | Fortheyearended31August2024 1. General information Home REIT plc (the “Company”) is a closed-ended investment company, incorporated in England and Wales on 19 August 2020 and is registered as a public company limited by shares under the Companies Act 2006 with registered number 12822709. The Company is structured as an externally managed company with a board of non-executive directors (the “Directors” or the “Board”). The Company commenced operations on 12 October 2020 when its shares began trading on the London Stock Exchange. The Directors approved the Consolidated Annual Report and Accounts for the year ended 31 August 2022 on 10 October 2024. Since the Company did not comply with the rules under DTR 4 to publish its 2022 annual financial report within four months of its year-end, trading in its shares was suspended on 3 January 2023. Additionally, the Company did not meet the requirement to file its half-yearly accounts within three months of its 2023, 2024 or 2025 period ends or its 2023 or 2024 annual reports within four months of its 2023 and 2024 year ends. The suspension of the Company’s shares cannot be lifted until its financial statement filings are brought up to date and the Company satisfies any other requirements of the Financial Conduct Authority (“FCA”). The Group (the “Group”) consists of the Company and its subsidiaries which are listed in Note 25. The principal activities of the Group and the nature of the Group’s operations are set out in the Strategic Report on pages 6 to 29. On 15 March 2023, the Company and its former Investment Adviser, Alvarium Home REIT Advisors Limited (“AHRA”) (now in liquidation), agreed by way of letter of agreement that the Company was entitled to terminate the Investment Advisory Agreement dated 22 September 2020 (the “IAA”) (which governed the relationship between the Company and AHRA) on or before 30 June 2023. On 23 May 2023, the Company appointed AEW UK Investment Management LLP (“AEW”) to provide property advisory services and announced its intent to engage AEW as Investment Manager and Alternative Investment Fund Manager (“AIFM”) after receipt of FCA and shareholder approval for a revised investment policy. On 25 May 2023, the Company and Alvarium Fund Managers (UK) Limited (“Alvarium FM”) (now in administration) agreed by way of variation agreement, as further varied on 18 July 2023, that the Investment Management Agreement dated 22 September 2020 (the “IMA”) (which governed the relationship between the Company and Alvarium FM) would be varied to allow for termination immediately upon the Company giving notice in writing to Alvarium FM, provided such notice was given by not later than 31 August 2023, or upon either party giving not less than six months’ notice in writing. On 30 June 2023, the IAA was terminated. On 21 August 2023, the Company terminated the IMA, the Company’s shareholders approved the revised investment policy and the Company appointed AEW as Investment Manager and AIFM. Going Concern The Directors, at the time of approving the financial statements, are required to consider whether they have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future and do not consider there to be any threat to their going concern status. As discussed in Note 26, on 16 September 2024 shareholders approved a new investment policy for a Managed Wind-Down of the Group’s operations. Part of that strategy was to sell enough properties through auctions to repay all amounts outstanding to Scottish Widows Limited (“Scottish Widows” or the “Lender”). On 27 November 2024, the Group repaid the loans and in December 2024, the Group paid the Deferred Fees of £9.0 million and Scottish Widows released its charge over the Group’s assets. Pursuant to the Managed Wind-Down, the Group will sell its remaining portfolio of investment properties and will not make any further real estate acquisitions. No further investment will be made unless such expenditure is necessary to protect or enhance an asset’s net realisable value or in order to comply with statutory obligations. Cashflow projections for the Group have been prepared by AEW and agreed with the Board which consider: 1. The Company anticipates that the portfolio sale process will conclude in the fourth quarter of 2025. 2. Revenue will continue to be collected on tenanted properties held by the Group. 3. Expenses are forecast to continue to be incurred at the current level for those services required for the continued operation of the Group. Notice periods have been considered where necessary and the majority of operations are expected to reduce significantly by the first quarter of 2026, when the Group expects to file its annual report and accounts for the year ended 31 August 2025. 4. Nothing has been budgeted for potential settlement of either the pre-action letter of claim or the FCA matter, both as described below. Financial Statements Notes to the Consolidated Financial Statements  HomeREITplc | AnnualReport | Fortheyearended31August2024     77 Financial Statements Notes to the Consolidated Financial Statements—continued As of the date of these financial statements, the Group has approximately £8.8 million of free cash. For purposes of this going concern analysis the Directors have assumed nil cash rent net of property expenses until the properties are sold. The Directors have forecast expenditures over the next twelve months and are satisfied that the cash on hand will be adequate to cover those expenses. In the event that expenditures exceed those estimates, the Group can sell additional properties at auction to cover any unforeseen expenses. In October 2023, the Company received a pre-action letter of claim which asserts that the Company provided information to investors which was false, untrue and/or misleading and as a result investors suffered losses. The Directors are not currently able to conclude whether or when a formal claim may be issued and if a claim is issued, what the quantum of such claim may be. Further, on 7 February 2024, the Company was notified by the FCA of its commencement of an investigation into the Company, covering the period from 22 September 2020 to 3 January 2023. The Company and the Directors are cooperating with the FCA in its investigation. However, they are not able to assess or quantify what, if any, action may be taken. Until the Directors have better visibility into the ultimate exposure of these and any other contingent liabilities, they will not be able to satisfy themselves as to what if any amounts will be required to settle these matters. When the Directors are able to estimate the range of exposure, the Company may return any estimated surplus capital to investors, whilst maintaining a prudent level of cash to wind down the Company and Group and considering any other eventualities. As a result of the threatened litigation, the FCA investigation and the Directors’ expectation for an orderly wind-down of the Company’s operations, the Directors consider it appropriate to adopt a basis of accounting other than as a going concern in preparing the financial statements. No material adjustments to accounting policies or the valuation basis have arisen as a result of ceasing to apply the going concern basis. 2. Accounting policies The principal accounting policies applied in the preparation of the financial statements are set out below. Basis of Preparation These Consolidated Financial Statements have been prepared in accordance with UK-adopted International Accounting Standards (“IFRS”) and the requirements of the Companies Act 2006. The Consolidated Financial Statements of the Group have been prepared on a historical cost basis, as modified for the Group’s accounting for investment properties, which have been measured at fair value. Gains or losses arising from changes in the fair value of investment property are included in the Consolidated Statement of Comprehensive Income. As discussed in Note 1, whilst the Directors are satisfied that the Group and the Company have adequate resources to continue in operation and to meet all liabilities as and when they fall due, the Directors consider it appropriate to adopt a basis other than going concern in preparing the financial statements because of the entry into a Managed Wind-Down for the Group. The preparation of financial statements in accordance with IFRS requires the Directors to make estimates and assumptions that effect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date. Differences between our estimates and the actual results will be recognised as they occur. Critical accounting estimates and key sources of estimation uncertainty in applying these accounting policies are disclosed in Note 3. The Group invests in residential property in the United Kingdom and receives revenue and pays expenses in Sterling. Therefore, the Directors have adopted Sterling as the presentation and functional currency in the Consolidated Financial Statements. Basis of Consolidation The Consolidated Financial Statements incorporate the financial statements of the Company and its subsidiaries. When the Company controls an investee, it is considered a subsidiary. The Company controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee and the ability of the investor to use its power to affect those variable returns. The results of subsidiaries acquired or disposed of during the year are included from the effective date of acquisition or up to the effective date of disposal.  1.Generalinformation—continued 78     HomeREITplc | AnnualReport | Fortheyearended31August2024 There are no accounting policies of subsidiaries which differ from Group accounting policies. All intra-Group transactions, balances, income and expenses are eliminated in consolidation. Acquisition of Investment Property The Group acquired properties directly and through the purchase of property-owning companies. On completion, the Group considers whether the transaction represents the acquisition of a business or an asset. Under the requirements of IFRS 3, to be considered a business, an acquired set of activities and assets must include, at a minimum, an input and a substantive process that together significantly enhance the ability to create outputs. All purchase transactions to date have met the criteria of asset acquisitions. The Group recognises acquisitions on completion. The cost of an asset acquisition includes direct transaction costs and is allocated between the identifiable assets and liabilities acquired based upon their relative fair values at the transaction date. Goodwill and deferred taxes are not recorded in the purchase price allocation. Most of the properties acquired were subject to an obligation for the vendor to complete certain works (“Seller’s Works”), to ensure that the property was fit for purpose (which was undefined) within a specified period as defined in the Sale and Purchase Agreements (“SPAs”). The vendor was typically given between 6 and 12 months to complete the Seller’s Works (the “Seller’s Works Longstop Date” or “SWLD”). Because the acquisition price was paid in full on completion except where a retention was retained, the Group retrospectively estimated the value of the Seller’s Works based on available information and allocated that portion of the purchase price as a prepayment for future enhancements to be made. If the work was completed and a certificate of practical completion was provided by the SWLD, the prepayment was reclassified into Investment Property. If the work was not completed by the SWLD, the prepaid balance was written off to the income statement. The Group wrote- off the remaining balance of the Seller’s Works in 2023 of £14,178,000 when the vendors did not complete the Seller’s Works by the SWLD. In some cases, a retention was required to be held by the Group’s solicitor at the acquisition date to be released upon receipt of a practical completion statement from a qualified surveyor or at fixed dates in the future. For retentions associated with the performance of Seller’s Works, the solicitor would generally release the retention upon receipt of the Practical Completion Statement or otherwise at the direction of the Investment Adviser. If the requirements were not met by the SWLD, the cash should have been released back to the Group. However, because certificates of practical completion were not obtained or retained by AHRA, retentions have been recorded on a cash basis through 31 August 2023. A portion of the purchase price was allocated to either a lease incentive asset (where the lease inception date is the same as the lease commencement date) or a debtor (where the property was not considered habitable at acquisition and therefore the lease was not considered to have commenced). The lease incentive is amortised as a reduction of gross rental income on a straight- line basis over the term of the lease. The debtor was reduced as cash was received from the tenant. The debtor and the lease incentive asset are assessed for impairment at each balance sheet date in line with the accounting for Financial Assets and Impairment of Non- Financial Assets respectively, as outlined in this note. Investment Properties Investment properties are those that are held to earn income or for capital appreciation, or both. Investment properties are initially measured at cost (including transaction costs) and adjusted to their fair value, as determined by an accredited independent external valuer, at each subsequent balance sheet date. Gains and losses arising from changes in the fair value of investment property are included in profit or loss in the period in which they arise. Additions to properties include expenditures which result in identifiable future economic benefits. All other property expenditures are expensed as incurred. Lease incentives and straight-line rent adjustments (as described below under Rental Income) are offset against investment property. Investment property sales are recognised on the completion date. Properties Sold and Held for Sale The Group presents investment properties as held for sale if their carrying amount will be recovered principally through a sale rather than through continuing use as a rental property. For this to be the case, the asset must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets and its sale must be highly probable. The sale would be expected to complete within one year of the balance sheet date. Financial Statements Notes to the Consolidated Financial Statements—continued 2.Accountingpolicies—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     79 Financial Instruments The Group’s accounting policy for each type of financial instrument is as follows: a) Financial assets The Group’s financial assets comprise tenant and other receivables, restricted cash and cash and cash equivalents. Financial assets are initially recognised at fair value less directly attributable transaction costs and subsequently measured at amortised cost using the effective interest rate method. There are no financial assets held at fair value through profit or loss. The Group utilises the simplified approach to measuring expected credit losses (ECLs) within IFRS 9 using a provision matrix in the determination of the lifetime expected credit losses. The receivable is written off against the provision when it is deemed uncollectible. Any recoveries made are recognised in profit or loss when received. b) Financial liabilities Trade and other payables that are financial liabilities are initially recognised at fair value, net of directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method. Costs associated with new financings are capitalised and amortised to finance costs over the fixed term of the loans using the effective interest method. Except as noted in d) below, bank borrowings are initially recognised at fair value net of directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method. Interest expense includes amortisation of initial transaction costs and an allocation of any premium payable on redemption. c) Embedded derivatives The Company evaluates financial and non-financial instruments for embedded derivatives at origination. If an embedded derivative is identified, the Directors consider whether it is closely related to the host contract to determine whether it should be accounted for separately from the host contract. If the embedded derivative requires separation, the Group would mark the instrument to market at each balance sheet date. The Group evaluated whether the prepayment options embedded in the loans should be considered embedded derivatives and concluded that they should not. d) Loan modifications and revisions to estimates of cash flows Where a modification or exchange of a financial liability does not result in the derecognition of the financial liability or the group revises its estimates as to the amounts or timings of cash flows in respect of the financial liability, the Group recalculates the amortised cost of the modified financial liability by discounting the modified contractual cash flows using the original effective interest rate. Any adjustment to the amortised cost of the financial liability is recognised in the Consolidated Statement of Comprehensive Income at the date of the modification or exchange. Financing costs in the Consolidated Statement of Comprehensive Income are subsequently presented as the original effective interest rate multiplied by the new carrying value. Deferred Fees paid and the benefit applied against the outstanding principal balance in the form of Break Gains (both of which had been previously considered in the revised cash flows supporting the gain recognised in 2023) are recorded directly against the adjustment recognised in 2023. Cash and Cash Equivalents Cash and cash equivalents comprise cash at bank and short-term deposits with an original maturity of three months or less. Restricted cash Restricted cash represents: • Cash withheld by the lender on the drawdown of borrowings. The Group only has access to this cash when acceptable security is provided and the Lender releases the restriction. • Cash held by third parties, primarily the Group’s solicitors, for a specific purpose such as future acquisitions and retentions. • Cash held in Lender controlled accounts which are not available to the Group until released by the Lender. This includes the ‘Required Interest Amount’ which represents nine months of interest to be held by the Lender as agreed in the 19 June 2023 waiver letters. Taxation Current and deferred taxes are recognised on any profit or loss not exempt under UK REIT regulations. Current tax is expected tax payable on any non-REIT taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date. Dividends Payable to Shareholders Final dividend distributions to the Group’s shareholders are recognised as a liability in the Group’s financial statements in the period in which the dividends are approved by the Group’s shareholders. Interim dividends are recognised when paid. Financial Statements Notes to the Consolidated Financial Statements—continued 2.Accountingpolicies—continued 80     HomeREITplc | AnnualReport | Fortheyearended31August2024 Rental Income – Leases with non-Occupant Tenants The Group retains substantially all the risks and rewards of ownership of the properties and accordingly, all leases are classified as operating leases. Rental income arising from the operating leases is accounted for on a straight-line basis over the expected term of the lease. The lease term is the non-cancellable period of the lease together with any further term for which the tenant has the option to continue the lease where, at the inception of the lease, the Directors are reasonably certain that the tenant will exercise that option. Where the Company’s leases with non-occupant tenants contain annual inflationary increases with a minimum uplift, the straight-line adjustment is rebased each year and the rental income arising from such uplifts is recognised on a straight-line basis over the remaining lease term. Changes in the payment amount, other than normal inflationary increases, or timing, or the lease term made after the original lease agreement was signed are accounted for as a lease modification. Lease modifications are accounted for as a new lease from the effective date of the modification, considering any prepaid or accrued lease balance at that date. In certain cases, the Group acquired properties which were not considered habitable at the acquisition date and simultaneously signed an operating lease. IFRS 16, “Leases”, defines a lease as “a contract, or part of a contract, that conveys the right to use an asset for a period of time in exchange for consideration.” If a property is deemed unhabitable (as described more fully in Note 3), the Directors have concluded that the lease has not conveyed the “right to control the use of an identified asset” and therefore the Group does not recognise the associated rental revenue until property improvement to a lettable standard is complete. Any cash received from the tenant while the property is judged to be unhabitable is applied as a reduction in the cost of property or the debtor, as appropriate and as described in Acquisition of Investment Property above. Income from Properties under Management Contracts Supported Living In order to be revenue generating, the Group, through its Intensive Housing Manager (“IHM”), must receive approval from each council in order receive payments for providing homeless or supported living accommodation. In order to become classified as ‘in payment’, Councils carry out an assessment of the individual requiring accommodation and due diligence on the IHM, generally inspect the properties to ensure they are of sufficient quality and appropriately located then set rents in line with Local Housing Allowance (“LHA”) rates. The Group recognises revenue for properties which have been approved to be in payment, and based on the number of occupants as submitted to the council for reimbursement. Private Rental Sector (“PRS”) The Group recognises revenue on PRS properties managed by third party property managers from the date on which the manager takes control of the property. Transfer of control of the property occurs as properties are surrendered to the Group from non-performing lessees. Under most surrender agreements, no written evidence of in place tenancies and health and safety compliance was provided. Revenue is recognised when the property in occupied, even if the tenancy is not documented with an Assured Shorthold Tenancy (AST). The Group considers a property is occupied on terms unknown if the property is occupied and the tenant is paying rent, even if there are no available written terms. In order to determine occupancy, property managers are instructed to inspect properties at least every 21 days. Impairment of Non-Financial Assets Non-financial assets including lease incentives and straight-line rent receivable assets are assessed for impairment at each balance sheet date or whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (the higher of value in use and fair value less costs to sell), the asset is impaired. The impairment test is carried out on the smallest group of assets to which it belongs for which there are separately identifiable cash flows, which is on a tenant basis defined as the cash-generating units (“CGUs”). As discussed in Note 4, impairment charges of £31,026,000 were recognised during the year ended 31 August 2023 (2024: nil). Changes to Accounting Standards and Interpretations At the date of authorisation of the financial statements, there were a number of standards and interpretations which were in issue but not yet effective. The Group has assessed the impact of these amendments and has determined that the application of these amendments and interpretations in current and future periods will not have a significant impact on its financial statements. There are several new standards and interpretations which were effective for the first time for periods beginning on or after 1 September 2023. These standards have been assessed to have no significant impact to the Group as they are either not relevant to the Group’s activities or require accounting which is consistent with the Group’s historical accounting policies. Financial Statements Notes to the Consolidated Financial Statements—continued 2.Accountingpolicies—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     81 3. Significant Accounting Judgements and Estimates The preparation of financial statements in conformity with IFRS requires the Directors to make judgements, estimates and assumptions that affect the reported amounts recognised in the financial statements. Revisions to accounting estimates are recognised in the period in which the estimates are revised. In the course of preparing the Consolidated Financial Statements, the Directors have had to make assumptions and judgements especially in the areas of valuation of investment property, rental revenue recognition and the recoverability of tenant related receivables, and the value and timing of recording loan modifications. The judgements, estimates and associated assumptions that have had a material impact in the presentation of assets and liabilities in these accounts are outlined below: Valuation of Investment Property As described more fully in Note 9, Investment Property, a number of significant judgments were made by the independent valuer in determining fair value of investment properties, including: • the credit quality of the tenant and the condition of the property were considered in determining the best valuation technique to value each property; • the Group undertook an exercise to inspect each property to determine its current condition which occurred from August 2023 to May 2024. Absent any new information, the condition of the property as determined at the inspection date is assumed to be the condition of the property for valuation purposes at 31 August 2024 and 2023; and • For the majority of properties valued on investment basis at 31 August 2024 and 2023, rents were capped at five years and overall value was capped at 113% to 154% (2023: 110% to 150%) of vacant possession value. The full lease period of up to ten years was considered for some tenants who are considered financially viable. Rental Revenue Recognition If a property was deemed habitable at acquisition, then rents are recognised on a straight-line basis over the life of the lease. Properties that the Group considered to be in very poor condition or boarded up and required conversion were deemed not habitable and therefore did not meet the criteria under IFRS 16 “Leases” for the lease to reach its Commencement Date. Accordingly, the Directors’ concluded that revenue recognition would only begin when the associated properties were put, at a minimum, into a habitable condition and did not recognise any rental revenue related to these properties for the year ended 31 August 2024 and 2023. The Directors instead recorded any cash received associated with a lease to reduce the debtor set up as discussed in the Acquisitions of Investment Property section of Note 2. Recoverability of Tenant Related Receivables Because the Group considered that 12 of its 20 (2023: 28 of 29) direct tenants were a poor financial covenant and fully non-performing, amounts outstanding in relation to these tenants at 31 August 2024 were provided for in full. Any recoveries made of tenant and tenant related receivables after 1 September 2024 will be recognised as received. For properties managed by a property manager, any arrears from underlying occupants were fully provided for unless received within a 30-day period after the end of the financial year. Loan Modifications On 31 August 2023, the Group adjusted the carrying value of its third-party loans using revised estimated cash flows discounted at the original effective interest rate. The estimated cash flows used were variable principal payments through to the revised expected repayment date of 30 June 2024 which the Group considered reasonable as at 31 August 2023 based on expected auction sales as well as the expected refinancing of the remaining balance of £100,000,000 (after property sales) in June 2024, which was the expectation at the time. Assumptions were also made regarding the estimated break gains as this impacts the quantum and timing of principal payments. The Group also estimated other fees and charges in preparing its estimate. The Group updated its computations in June 2024 when the Group did not proceed with the expected refinancing and recognised a loss of £369,000 in the year to 31 August 2024. Financial Statements Notes to the Consolidated Financial Statements—continued 82     HomeREITplc | AnnualReport | Fortheyearended31August2024 4. Income For the year For the year ended 31 August ended 31 August 2024 2023 £’000 £’000 Amounts invoiced in accordance with lease agreements 35,185 56,501 Income from properties under management agreements 5,748 366 Effect of straight-lining rent 3,700 7,135 Rent not recognised because properties were unhabitable (3,243) (4,832) Lease inducement amortisation – (1,531) Rental income 41,390 57,639 Other income 279 – Impairment of lease inducement – (22,010) Impairment of rent straight-lining (3,700) (9,016) Net rental income 37,969 26,613 All properties subject to leases are based in the UK. Rental income includes amounts receivable in respect of tenant leases for those properties deemed habitable and is measured at the fair value of the consideration received or receivable. As discussed in Note 3, in certain cases, the Group acquired properties which were not considered habitable at the acquisition date, but which were subject to an operating lease. If a property is deemed unhabitable, the Group does not recognise any associated rental revenue until required improvements are complete. Any cash received from the tenant while the property is judged to be unhabitable is applied as a reduction in the debtor established at acquisition (in lieu of a lease incentive) or the property carrying value, as appropriate. During the year ended 31 August 2024, the Group sold 154 properties which were deemed unhabitable at acquisition (2023: acquired 26 properties), such that there were 44 unhabitable properties at 31 August 2024 (2023: 198 properties). Payments received of £1,195,000 in 2023 (2024: nil) associated with the in-place leases for all unhabitable properties have been applied against the debtor established at acquisition. During the year ended 31 August 2024, no unhabitable properties were improved to a state which the Group considered habitable (2023: nil).  The Group assesses impairment of individual lease related assets such as lease incentives and straight- line rent receivables at the tenant levels. Impairment charges of £3,700,000 were recognised during the year ended 31 August 2024 (2023: £31,026,000). The future minimum rents receivable under non- cancellable operating leases with CIC and other operators, and excluding short-term and overnight rentals associated with properties managed by property managers, related to habitable properties are: As at As at Future minimum rents receivable 31 August 2024 31 August 2023 in the period: £’000 £’000 Year 1 12,828 49,664 Year 2 12,917 50,184 Year 3 13,049 50,703 Year 4 13,182 51,224 Year 5 13,201 51,749 > 5 years 134,157 716,844 Total 199,334 970,368 5. Operating expenses Property operating expenses Operating expenses grew as the Group had many more properties under management agreements in FY24 as compared to FY23: For the year For the year ended 31 August ended 31 August 2024 2023 £’000 £’000 Maintenance and compliance 2,301 550 Management fees 1,342 – Utilities 788 – Council tax 562 4 Other fees 166 – Sub total 5,159 554 Irrecoverable property insurance 624 – Property consultancy fees 568 200 Other property expenses 435 – Total 6,786 754 Financial Statements Notes to the Consolidated Financial Statements—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     83 Financial Statements Notes to the Consolidated Financial Statements—continued The Group has primary responsibility for property operating costs including council taxes, utilities, repairs and maintenance and property management fees where properties are managed by property managers. Some costs, such as council taxes and utilities, may be paid directly by tenants, unless they are the responsibility of the Group in the case of vacant properties and those with inclusive leases (which include supported living properties). The Group auctions properties on a vacant possession basis because it provides greater value and is therefore responsible for all expenses between the lease surrender date and the date on which the sale is completed. General and administrative expenses For the year For the year ended 31 August ended 31 August 2024 2023 £’000 £’000 Legal fees 7,106 3,502 AEW property and investment manager fees (Note 19) 5,000 1,085 Professional fees 4,608 3,395 Fees paid to the Group’s Independent Auditor 846 1,076 Valuation fees 300 2,165 Directors’ fees (Note19) 362 176 Alvarium investment advisory fees (Note19) – 5,094 Tenant and aggregator settlements – 1,419 Other administrative expenses 1,563 1,247 Total 19,785 19,159 Valuation fees for the period to 31 August 2023 include an allocation of fees associated with a comprehensive inspection programme to support the valuation process which ran from August 2023 to May 2024. There were no incremental inspection fees included in valuation expense in the period to 31 August 2024. On 13 February 2023, the Company appointed Smith Square Partners as financial advisor and the relationship was terminated on 24 August 2023 with effect from 24 November 2023. The Company expensed £2,426,000 (2023: £2,537,000) during the year ended 31 August 2024 associated with this contract which is included in professional fees. On 8 December 2022, a representative of AHRA, without the knowledge or authority of the Board, entered into a settlement agreement between the Group and various property vendors (the “Aggregators”) whereby the Group would pay £675,000 and purportedly waive any refurbishment claims against the Aggregators in relation to 488 properties held by the Group. In December 2024, the Group settled a dispute with a tenant which required an initial payment of £680,000 and an additional amount of £45,000 payable after the tenant met certain conditions which occurred in February 2025. Because the dispute related to prior periods, the amount was recorded in the accounts for the year ended 31 August 2023 Fees paid to the Group’s Independent Auditor, BDO LLP, include the following (all fees are inclusive of VAT): For the year For the year ended 31 August ended 31 August 2024 2023 £’000 £’000 Fees payable to the company’s auditor for the audit of the company’s annual accounts 772 1,004 Other fees payable to the company’s auditor: Audit of the accounts of subsidiaries 72 72 Fee payable for data preservation 2 – Included in general and administrative expenses 846 1,076 5.Operatingexpenses—continued 84     HomeREITplc | AnnualReport | Fortheyearended31August2024 6. Realised loss and cash flows related to disposal of investment properties For the year For the year ended 31 August ended 31 August 2024 2023 £’000 £’000 Net proceeds from disposals of investment properties 1 140,621 – Fair value of disposed properties at the beginning of the year (151,373) – Realised loss on disposal of investment properties (10,752) – During the year ended 31 August 2024, the Group completed on the sale of 1,098 properties for gross proceeds of £147,915,000. Under the borrowing agreements discussed more fully in Note 10, the proceeds from property sales were fully under the control over the Lender and the Lender’s agent. As agreed in various waiver letters between the Borrowers, Guarantors, Lender and Agent, all of the proceeds from the sale of properties were allocated 93% weekly to the Agent controlled proceeds accounts and 7% to the Group to cover the cost of property sales and other general expenses. The amount allocated to the proceeds account was then allocated monthly in the following order: first, to repay the Lender for the allocated  loan amounts related to each sold property, second, to the Lender to cover any unpaid interest or other amounts  due, and then last in accordance with an allocation as agreed in the periodic waiver letters. Because the portion  of the net proceeds sent directly to the Agent controlled proceeds accounts were never under Group control, we have excluded the gross proceeds from property sales and the principal payments on the loans from the Consolidated Statement of Cash Flows. During the year ended 31 August 2024, those cash flows were: For the year ended 31 August 2024 £’000 Gross proceeds from property sales 147,91 5 Amount allocated to cover the cost of property sales 10,6 53 Amount allocated to the Lender controlled proceeds account 134,30 9 Amount held by solicitors as at 31 August 2024 2,953 147 ,915 Proceeds allocated to cover the cost of property sales 10,6 53 Cost of property sales (7,294) Net proceeds distributed to unrestricted account 2 3,359 Proceeds allocated to the Lender- controlled proceeds account1 1 34,309 Amount used to repay principal and interest on outstanding loans (Note 20) 665 100, Net proceeds distributed to unrestricted account 2 232 20, Proceeds held in disposal account as at 31 August 2024 (Note12) 13,412 309 134, As at 31 August 2024, proceeds of £2,953,000 related to completed sales had been received by the Group’s solicitor but not yet received in a Group controlled account are included in other receivables. 7. Finance costs For the year For the year ended 31 August ended 31 August 2024 2023 £’000 £’000 Loan interest 3,557 5,462 Deferred loan fees – 1,100 Amortisation of loan arrangement fees – 501 Total finance costs 3,557 7,063 As discussed more fully in Note 10, Scottish Widows has imposed various Deferred Fees payable at the full and final repayment of the loans. The loans and the Deferred Fees were fully repaid in November and December 2024, respectively. Financial Statements Notes to the Consolidated Financial Statements—continued 1. Expenses of £7,294,000 were paid out of gross proceeds (£7,139,000) and out of the Group’s General Account (£155,000). 2. Aggregate of these amounts of £23,591,000 was released to the Group’s unrestricted cash accounts during the year ended 31 August 2024.  HomeREITplc | AnnualReport | Fortheyearended31August2024     85 Financing costs have been recognised for the year ended 31 August 2024 by multiplying the original effective interest rate against the carrying cost of the third- party loans as revised on 31 August 2023. Break gains and Deferred Fees imposed by the Lender have been recognised as amortisation against the gain recognised in 2023 to the extent that they were considered in the revised estimated cash flows. 8. Taxation The Group is a real estate investment trust (“REIT”) and as a result the profit and gains arising from the Group’s property rental business are exempt from UK corporation tax provided it meets certain conditions as set out in the UK REIT regulations. Profits arising from any residual activities (e.g. trading activities and interest income), after the utilisation of any available residual tax losses, are subject to corporation tax at the main rate of 25% (19% prior to 31 March 2023, so that the year to 31 August 2023 is computed at 21.5%, being 7 months at 19% and 5 months at 25%). For the year For the year ended 31 August ended 31 August 2024 2023 £’000 £’000 Current tax – – Origination and reversal of temporary differences – – Total deferred tax – – Tax charge – – Reconciliation of the total tax charge The reconciliation of loss before taxation multiplied by a blended standard rate of corporation tax for 2024 of 25% (2023: 21.5%) to the total tax charge in the Consolidated Statement of Comprehensive Income is as follows: For the year For the year ended 31 August ended 31 August 2024 2023 £’000 £’000 Loss before tax (25,166) (118,160) Tax at the standard rate of UK corporation tax 6,291 25,404 Effect of: Revaluation of investment properties 1,806 (15,342) Losses not taxed for which no benefit can be recognised (8,097) (10,062) Tax charge – – 9. Investment property (non-current) and investment property held for sale (current) As at As at 31 August 2024 31 August 2023 £’000 £’000 Freehold investment property at the beginning year 412,720 414,270 Property acquisitions in the year – 104,125 Property disposals in the year (151,373) – Reclassification of first year inducement where building is considered as habitable – (5,408) Reclassification of first year inducement where building is considered as unhabitable – (588) Receipts relating to buildings considered as unhabitable – (548) Prepaid Seller's Works recognised as receivable – (5,883) Rent straight lining and lease inducement – 11,089 Impairment of rent straight lining and lease inducement – (31,026) Retentions received during the year (3,138) (1,951) Increase/(decrease) in fair value of investment property 7,223 (71,360) Fair value at the end of the year 265,432 412,720 Investment property: Investment property –noncurrent 236,325 407,932 Investment property held for sale – current 29,107 4,788 Total investment property 265,432 412,720 During the year ended 31 August 2023, the Group acquired 234 properties (year to 31 August 2024: Nil). The Group recognises investment properties at fair value at each balance sheet date in accordance with IFRS 13 which recognises a variety of fair value inputs depending upon the nature of the investment. The valuations have been prepared in accordance with the RICS Valuation – Global Standards July 2022 (the “Red Book”) and incorporate the recommendations of the International Valuation Standards and the RICS Valuation – Professional Standards UK January 2014 (Revised Financial Statements Notes to the Consolidated Financial Statements—continued 7.Financecosts—continued 86     HomeREITplc | AnnualReport | Fortheyearended31August2024 April 2015) which are consistent with the principles set out in IFRS 13. Specifically, IFRS 13 defines the fair value hierarchy as follows: Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities. Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. Property valuations are inherently subjective and rely on using transaction data which is similar but not directly comparable and is usually adjusted to account for any underlying differences. Accordingly, the valuation of all of the Group’s investment properties are classified as Level 3. The investment properties have been valued as at 31 August 2024 and 2023 by Jones Lang LaSalle Limited (“JLL”), an accredited independent external valuer with relevant and recent experience of valuing residential properties of the type in which the Group invests. Fair value is the estimated amount for which a property would exchange on the date of the valuation in an arm’s-length transaction and has been estimated using a combination of the investment approach and MV-VP. The investment approach involves applying a yield to the future income stream net of estimated voids and rent-free periods and then a reversion to MV-VP, which future cash flows are discounted back to the balance sheet date. The yield and estimated rental values are observed based on the valuers’ judgment of comparable property and leasing transactions in the market. The primary factors which have been considered in assessing which valuation technique to use is the covenant strength of the tenant including their payment history and the property’s condition. The other significant factors which are considered under both techniques include the property’s type, its location and market conditions. The Group recently assessed property conditions (inspections occurred from August 2023 to May 2024) through a formal inspection programme, whereby Vibrant Energy Solutions Ltd (“Vibrant”) was engaged to perform an internal inspection of most properties and issue a condition report. If properties were inspected by another party for another purpose during that period, those properties have been excluded from the Vibrant inspection process and instead JLL have made use of the report of the alternative provider. The condition of the properties as assessed in the inspection programme has been assumed to be the condition of the properties at the valuation dates. To arrive at opinions of fair value, JLL divided the assets into four categories and estimated rental value and yield for each: • Individual properties (suitable for occupation by a single family); • HMO’s (properties with individual bedrooms but common kitchen and other facilities); • Residential investments (properties with individual flats for occupation); and • Development properties (properties which are considered derelict and require substantial re-development). As discussed in Note 3, not all leases were deemed to have commenced (for the purposes of recognising revenue) as some of the associated properties were deemed to be unhabitable. The security of the unexpired term for these leases differs across the portfolio depending on the covenant strength of the tenant. For tenants with a weak covenant strength or where a property was deemed unhabitable or not fit for-purpose, JLL disregarded the leases and valued the properties on the basis of MV-VP. All properties under the control of property managers have been valued on the basis of MV- VP. Where a property was deemed to be in a reasonable condition, capable of beneficial occupation, and let to a tenant who was likely to meet its rent demands in the short-term, JLL adopted the investment approach. For those tenants, JLL capped the unexpired lease term at five years, even where the actual unexpired lease term was for a longer period. This was due to a lack of confidence in those tenants being able to fulfil their lease obligations beyond five years. For those properties which were let or sublet to a tenant with a strong covenant, JLL considered the in-place lease (or ignored the primary in- place lease and instead capitalised the sublease passing rent for its remaining term of up to eight years). Where a property has a high passing rent in comparison to JLL’s opinion of MV-VP, JLL capped the Fair Value at between 113% and 154% of MV-VP, depending on the tenant (2023: between 110% and 150%, depending on the tenant). The fair value of investment property at 31 August 2024 and 2023 was split between the following valuation techniques (both considered Level 3): As at As at 31 August 2024 31 August 2023 £’000 £’000 Investment valuation approach 30,216 48,160 Market value – vacant possession approach 235,216 364,560 Fair value at the end of the year 265,432 412,720 Financial Statements Notes to the Consolidated Financial Statements—continued 9.Investmentproperty(non-current)andinvestment propertyheldforsale(current)—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     87 For the year ended 31 August 2024, 37 properties were valued using the MV-VP valuation technique, having previously been valued using the investment method (2023: 1,080). JLL considered the change appropriate after re-evaluating the credit strength of the underlying tenant. For those properties valued using the investment approach only, unobservable inputs used in the valuations are as follows: Passing rent and yield range Passing rent pa Passing Valuation Valuation 31 August 2024 rent pa range 31 August 2024 yield range Sector £’000 £’000 £’000 % Residential 3,726 6-181 30,216 7-25 Passing rent pa Passing Valuation Valuation 31 August 2023 rent pa range 31 August 2023 yield range Sector £’000 £’000 £’000 % Residential 6,076 6-178 48,160 8-30 For those properties valued using the investment approach, the average passing rent per annum per property was £16,000 for the year ended 31 August 2024 (2023: £21,000) and the average valuation yield was 12% for the year ended 31 August 2024 (2023: 13%). Sensitivities of measurement of significant unobservable inputs As noted above, the Group’s property portfolio valuation is open to judgements and is inherently subjective by nature. Because 1,143 of 1,375 (83% of properties) are valued using the MV-VP approach at 31 August 2024 (2023: 2,184 of 2,473 and 88% respectively) and those valued under the investment approach are capped at between 113% and 154% of MV-VP (depending on the underlying tenant), changes in passing rents and initial yields do not impact the fair value as much as general price movements in the property market. The table below shows the sensitivities of measurement of the Group’s investment property to those inputs (for properties valued using the investment approach): -5%inpassing +5% in passing +100bps in net -100bpsinnet rent rent initial yield initial yield As at 31 August 2024 £’000 £’000 £’000 £’000 Investment property (300) 300 (500) 500 -5%inpassing +5% in passing +25bps in net -25bpsinnet rent rent initial yield initial yield As at 31 August 2023 £’000 £’000 £’000 £’000 Investment property (300) 200 (1,100) 600 For 2024, a 5% increase/decrease in MV-VP (for all properties) would increase/decrease the overall value of investment property by approximately £13,000,000 (2023: £20,300,000). 10. Financial instruments The Group’s borrowings comprise two fixed term loan facilities, one for £120 million and the other for £130 million (£100 million after principal repayment of £30,000,000 in April 2023). Both facilities are with Scottish Widows. The £120 million facility has an all-in rate of 2.07% per annum for the duration of the loan and was due for repayment in December 2032. The £100 million facility has an all-in rate of 2.53% for the duration of the loan and was due for repayment in December 2036. Both loans are secured by investment property and other assets held by the Group. The Company and its subsidiaries were party to agreements with (amongst others) Scottish Widows including (in the case of two subsidiaries of the Company) facility agreements and (in the case of the Company and all subsidiaries) guarantees. Various breaches have occurred under those agreements. Since an initial waiver letter dated 30 January 2023 waiving certain breaches, new waiver letters were issued on the expiry of each previous waiver period. The waiver letters related to various matters including financial covenants, an adverse change in the position of the Company and its subsidiaries, a failure to deliver audited accounts and other information, the suspension of the shares of the Company on the London Stock Exchange and the tax status of the Company. As discussed in Note 26, the term loans were repaid in full in September and November 2024. On 19 June 2023, Scottish Widows imposed a Deferred Fee of 0.5% of the aggregate amounts outstanding  Financial Statements Notes to the Consolidated Financial Statements—continued 9.Investmentproperty(non-current)andinvestmentpropertyheldforsale(current)—continued 88     HomeREITplc | AnnualReport | Fortheyearended31August2024 on the two loans at each of 31 August 2023 and 30 November 2023, payable on the full and final settlement of the loans. On 4 December 2023, Scottish Widows imposed a further Deferred Fee effective from 30 November 2023 being the equivalent of 5% per annum on the aggregate amounts outstanding on the two loans as computed on a daily basis. On 2 July 2024, Scottish Widows increased the Deferred Fee from 5% to 7% with effect from 1 July 2024 until the final repayment of the loans. As discussed in Note 26, the Deferred Fees were fully paid in December 2024. On 31 August 2023, as part of the periodic waiver update and in response to a request by the Lender, the Directors agreed to focus on repayment of both loans as soon as possible with a target repayment date no later than 30 June 2024. While not a technical amendment to the loans, the change in the estimated timing and amount of cash payments required the Group to recalculate the carrying value of the loans using new estimated cash flows and discounted using the original effective interest rate. The change in value resulted in a gain of £14,537,000 which was recorded in the Consolidated Statement of Comprehensive Income in the year ended 31 August 2023. Meeting the initial target repayment date of 30 June 2024 required the Group to refinance the existing facilities. In June 2024, the Group announced that it could not achieve a refinancing on terms that it could recommend to shareholders and agreed with Scottish Widows to sell additional properties in order to repay the loans by 31 December 2024. This additional change in the estimated timing and amount of cash payments also required the Group to recalculate the carrying value of the loans using the further adjusted expected cash flows. The revised cash flows take into account the balance of the loan at the determination date and reflects those cash payments which the Group considers it will need to make to reduce the loan balances to zero, discounted at the original effective interest rate. The agreements provide that if the Borrowers repay outstanding principal early, the Borrower pays or benefits from a Net Break Gain. The Net Break Gain is the net amount between the make whole amount on the margin of the loan (Spens Costs) and the synthetic interest rate break value which is the difference between the current swap rate and the fixed rate embedded in the loan. During the year ended 31 August 2023, the Company recognised £2,706,000 in Net Break Gains which were received in cash at the date of the early repayment in April 2023. After re-considering the updates to the original assumptions for interest payable, Net Break Gains and Deferred Fees, there was a net loss of £369,000 which has been recorded in the Consolidated Statement of Comprehensive Income in the year ended 31 August 2024. For the year For the year ended 31 August ended 31 August 2024 2023 £’000 £’000 Principal owing to Lender at end of the year 93,822 220,000 Carrying value adjustments (2,784) (20,500) Carrying value at end of the year 91,038 199,500 Carrying Value Adjustments For the year For the year ended 31 August ended 31 August 2024 2023 £’000 £’000 Beginning balance (deferred loan costs in 2023) (20,500) (5,963) Recognition of remeasurement loss/(gain) 369 (14,537) Reclassification of Deferred Fee accrual 1,100 – Amortisation of remeasurement gain 16,247 – Ending balance (2,784) (20,500) Fair Value The Group utilises the income method to value its bank borrowings which is different than the approach used to compute the gain or loss discussed above. The income approach estimates the fair value of a debt instrument by estimating the difference between contractual and market debt service payments discounted at an equity yield reflective of the risks inherent in the loan. The income approach is considered Level 3 under the fair value hierarchy. The Group estimated the market replacement rate to be 5.89% (2023: 6.27%) for Home Holdings 1 and 6.19% (2023: 6.46%) for Home Holdings 2 as at 31 August 2024. If the estimated replacement rate were to increase or decrease by 1%, the resulting change in fair value would be a decease/increase in the fair value adjustment of £74,000 and £74,000 respectively (2023: £6,526,000 and £9,576,000 respectively). Set out below is a comparison of the carrying value and fair value of the Group’s financial instruments where a difference exists. The fair value of financial instruments not included in the comparison is equal to carrying value. As at 31 August 2024 As at 31 August 2023 Carrying value Fair value Carrying value Fair value Bank borrowings £’000 £’000 £’000 £’000 Bank borrowings 91,038 93,551 199,500 184,940 Financial Statements Notes to the Consolidated Financial Statements—continued 10.Financialinstruments—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     89 11. Trade and other receivables As at As at 31 August 2024 31 August 2023 £’000 £’000 Tenant receivables in accordance with lease agreements 50,479 55,627 Rent not recognised because properties were unhabitable (3,243) (4,832) Tenant receivables 47,236 50,795 Receivable from solicitors for completed property sales 2,953 – Receivable from property managers 1,222 – Other receivables 160 45 Prepaid expenses 78 23 Tenant receivables and other financial assets 51,649 50,863 Provision for expected credit loss (47,857) (50,747) Net tenant receivables and other financial assets 3,792 116 Lease inducement receivable for unhabitable properties – – Prepaid Seller’s Works – – Trade and other receivables 3,792 116 Debtors All trade and other receivable amounts are due within one year. The net carrying value of trade and other receivables classified at amortised cost approximates fair value. During the year ended 31 August 2024, the Group agreed surrender deals with 23 tenants on 1,839 properties. The tenants had outstanding debtors from underlying occupants at the date of surrender, which in some cases were transferred to the Group as a condition of the surrender. Because the records associated with the pre- control debtors were not fully verifiable and the debtors generally not collectible, the Board has not established these amounts as debtors. Any subsequent collection of these debtors is recognised when received. As discussed more fully in Note 3, the Directors analysed the expected credit loss and concluded that collection of debtors of £47,857,000 was doubtful and provided for such amounts at 31 August 2024 (2023: £50,747,000).  As the Group judged 12 of its 20 tenants as having a poor financial covenant and non-performing due to low or no cash received for rents, outstanding debtors at 31 August 2024 were provided for in full. Any recoveries made of tenant receivables after 1 September 2024 will be recognised when received. For properties managed by a property manager, any arrears from underlying occupants were fully provided for unless received within a 30-day period after the end of the financial year. During FY24, the Group agreed to write-off debtors as a condition to surrender deals that were agreed with non- performing tenants. These write-offs related to debtor balances that had been previously fully provided for. Movements in the provision for expected credit loss for the years ended 31 August 2024 and 2023 were as follows: Impairment of trade receivables As at As at 31 August 2024 31 August 2023 £’000 £’000 Opening provision for impairment of trade receivables 50,747 1,850 Increase during the year 29,109 48,897 Receivables written- off during the year as uncollectable (31,999) – At the end of the year 47,857 50,747 The following table sets out the ageing profile of trade and other receivables that are financial assets: As at As at 31 August 2024 31 August 2023 £’000 £’000 30 days or fewer 4,414 4,216 31 to 60 days 1,198 4,186 61 to 90 days 1,307 4,137 91 to 120 days 1,664 4,123 Over 120 days 43,066 34,201 51,649 50,863 Financial Statements Notes to the Consolidated Financial Statements—continued 90     HomeREITplc | AnnualReport | Fortheyearended31August2024 12. Cash reserves As at As at 31 August 2024 31 August 2023 £’000 £’000 Cash held in Lockbox accounts – 8,881 Retentions held by solicitors 510 4,616 Required Interest Amount classified as restricted 1,766 3,768 Cash held in Disposal Account 13,412 – Restricted cash held by third parties 15,688 17,265 Cash and cash equivalents 6,182 814 Total cash reserves 21,870 18,079 A new condition in the waiver letter agreed on 19 June 2023 allowed the Lender to hold back an amount of up to nine months of interest in the Lender- controlled rent accounts (“Required Interest Amount”) to be released fully at the Lender’s discretion. Cash held in the Disposal Account was controlled by the Lender and primarily used to repay principal of the loans in September 2024. Cash held in Lockbox accounts as at 31 August 2023 of £8,881,000 was applied against the outstanding principal balance in December 2023. Retentions of £1,464,000 were withheld from the acquisition of properties in the year ended 31 August 2023 (2024: nil). The Group’s solicitor’s released £689,000 of Seller’s Works retentions to vendors (2023: AHRA authorised the release of £5,365,000) and £3,138,000 to the Group (2023: £1,951,000) during the year ending 31 August 2024. In addition, insurance retentions of £279,000 were released to the Group. These were not initially established as an asset of the Group so the Group recorded a gain in that amount when the funds were received which has been presented in Other Income in the Consolidated Statement of Comprehensive Income. As at As at 31 August 2024 31 August 2023 £’000 £’000 At beginning of the year 4,616 10,468 New retentions on acquisitions in the year – 1,464 Retentions released to vendors (689) (5,365) Retentions released to Home REIT Plc (3,138) (1,951) Insurance retentions released to Home REIT Plc (279) – Retentions at the end of the year 510 4,616 13. Trade and other payables As at As at 31 August 2024 31 August 2023 £’000 £’000 Trade creditors 2,137 1,340 Accrued expenses 5,707 8,591 Retentions payable 510 4,616 Total trade creditors and accrued expenses 8,354 14,547 All trade and other payables are due within one year. The Directors consider that the carrying amount of trade and other payables approximates fair value. Retentions payable are amounts due to vendors payable when they complete property improvements which were agreed in the original SPA. See Note 12 for more information on retentions. Financial Statements Notes to the Consolidated Financial Statements—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     91 14.Financialriskmanagement AEW, and prior to AEW’s appointment on 21 August 2023, Alvarium FM and AHRA had risk management procedures and processes in place which would have enabled them to monitor the risks of the Group. The objective in managing risk is the creation and protection of shareholder income and value. Risk is inherent in the Group’s activities, but it is managed through a process of ongoing identification, impact assessment, and monitoring and subject to risk limits and other controls. The principal financial risks facing the Group in the management of its portfolio are as follows: Credit risk Credit risk is the risk that a tenant or another counterparty will not meet its obligations under a lease or other financial instrument which would cause financial loss to the Group. The Group is exposed to credit risk through its tenant leases and cash deposits on account with its commercial bank and with solicitors pending completion of Seller’s Works or a return to the Group. It is the Group’s policy to enter commercial banking arrangements with reputable financial institutions. The AIFM monitors the credit worthiness of banks used by the Group by review of credit ratings, financial statements and other public records and news on a quarterly basis. Where the Group transfers funds to its solicitors pending acquisitions or as a retention subject to completion of a workstream, the associated law firms place those funds in legally restricted client accounts. In respect of tenant leases, in the event of a default by a tenant, the Group suffers an income shortfall and additional costs in reletting the property and vacancy costs. Tenant defaults adversely impact the value of investment property by either widening the yield underpinning an investment-based valuation or change the appropriate fair value technique from investment basis to MV-VP. Since its appointment, AEW has considered the long- term viability of each tenant. In situations where the tenant is not considered viable in the long-term, AEW has agreed with the tenant to surrender the leases to take back control of the underlying properties to either let directly as PRS (through a property manager) or re- let to a housing provider for Supported Housing. Where lease surrenders could not be agreed commercially, AEW has taken or is taking action against the tenants which could include statutory demands, forfeiture and winding up petitions. In the few instances where the tenant is performing well, the leases will remain in place, although terms may be varied. AEW is continuing to assess potential prospective tenants and property managers, including quality providers of social housing and support services for properties suitable for occupation. Stringent covenant and capability analysis are undertaken on all proposed property managers and tenants in accordance with AEW’s rigorous processes. AEW provides regular updates to the Board on its strategy by tenant and the progress against business plans. The table below shows the Group’s exposure to credit risk: As at As at 31 August 2024 31 August 2023 £’000 £’000 Cash and cash equivalents 6,182 814 Restricted cash 15,688 17,265 Tenant receivables and other financial assets 3,792 116 25,662 18,195 Liquidity risk AEW manages the Group’s liquidity and funding risks by regularly updating short-term (13 week) and medium- term (15 month) cash flow forecasts to ensure sufficient unrestricted cash balances are held within the Group to meet current and future needs, which is reviewed with the Board monthly. AEW assesses the ability of tenants to settle obligations within normal terms of credit which supports both forecasts. Financial Statements Notes to the Consolidated Financial Statements—continued 92     HomeREITplc | AnnualReport | Fortheyearended31August2024 The following table details the Group’s liquidity analysis in respect of its financial liabilities on contractual undiscounted payments (assuming repayment of the debt under contractual terms): 3-12 1-5 < 3 months months years 5 years + Total 31 August 2024 £’000 £’000 £’000 £’000 £’000 Bank borrowings and interest 2 588 121,861 – – 122,449 Deferred loan fees – 7,910 – – 7,910 Retentions payable 1 510 – – – 510 Trade and other payables 7,844 – – – 7,844 8,942 129,771 – – 138,713 3-12 1-5 < 3 months months years 5 years + Total 31 August 2023 £’000 £’000 £’000 £’000 £’000 Bank borrowings and interest 1,251 3,767 20,099 251,560 276,677 Deferred Fees – 1,100 – – 1,100 Retentions payable 1 4,616 – – – 4,616 Trade and other payables 8,106 – 725 – 8,831 13,973 4,867 20,824 251,560 291,224 1. As discussed in Note 2, the Group has accounted for retentions on a cash basis as supporting documentation was not always available to support the release of amounts to vendors. Accordingly, all amounts are presented as due within the next three months in the table above. 2. The bank borrowings and interest balance is represented as due in 3-12 months because it was the Groups intention to repay the loans by 31 December 2024 as at the date of the accounts. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. As discussed more fully in Note 26 and below, the Group has fully repaid the loans and the Deferred Fees. Capital management The Group considers proceeds from share issuance, bank borrowings and retained earnings as capital. Until the announcement of the managed wind-down discussed in Note 1, the Board and AEW monitored the Group’s capital position to provide sustainable returns for shareholders, to facilitate growth and to maintain an optimal capital structure to reduce the cost of capital. After receipt of Shareholders approval for the Managed Wind Down, the Company is focused on maximising proceeds from property sales and minimising liabilities. Financial Statements Notes to the Consolidated Financial Statements—continued 14.Financialriskmanagement—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     93 15. Share Capital As at As at 31 August 2024 31 August 2023 Ordinary Shares of £0.01 each Balance at the beginning Number Number and end of the year 790,570,465 790,570,465 Share capital is the nominal amount of the Company’s shares in issue which are fully paid. 16. Share premium account As at As at 31 August 2024 31 August 2023 £’000 £’000 Balance at the beginning and end of the year 595,733 595,733 The share premium relates to amounts subscribed for share capital in excess of nominal value less associated issue costs of the subscriptions. As discussed more fully in Note 26, following shareholder approval to cancel the Company’s share premium account passed on 20 February 2025, the cancellation of the share premium account in the amount of £595,733,000 was approved by the Court on 29 April 2025 and became effective with the registration of the Court order at Companies House on 2 May 2025. 17. Special distributable reserve As at As at 31 August 2024 31 August 2023 £’000 £’000 Balance at beginning of year 190,130 201,040 Dividends distribution – (10,910) Balance at end of year 190,130 190,130 The special distributable reserve represents the cancelled share premium (from the initial share issuance) less dividends paid from this reserve. This is a distributable reserve. 18. Dividends On 16 February 2023, the Board announced that except for any distributions that would be required to maintain REIT status, that it has ceased paying any further dividends until further notice. No dividends were paid in the year ended 31 August 2024 (2023: £10,910,000). On 12 December 2022, the Company declared an dividend of 1.38 pence per share in respect of the period from 1 June 2022 to 31 August 2022, which was paid on 20 January 2023 to shareholders on the register as at 22 December 2022. This dividend was paid as a property income distribution. 19. Related party transactions Investment Manager On 22 May 2023, AEW was appointed as Property Adviser for the Transition Period and subsequently on 21 August 2023, on expiry of the Transition Period, as AIFM and Investment Manager (see AIFM section below). The Transition Period lasted from the date of appointment until the Commencement of Phase 1. Phase 1 continues for two years from the date of commencement, at which time Phase 2 commences. Phase 1 commenced when the following occurred: 1. Alvarium FM and AHRA ceased to act for the Group; 2. FCA approved the appointment of AEW as AIFM for the Company; and 3. The adoption of the Amended Investment Policy. During the Transition Period, AEW was paid £3,000,000 per annum. AEW is paid the following annual fee in Phase 1: 1. A fixed fee of £3,000,000 from the commencement of the Transition Period and as increased at each successive anniversary by the lower of CPI, RPI and 5%; 2. A variable fee for disposal of investments of £422 per bed, as defined; and 3. A variable fee of 10% of rent collected by the Company from its investments. The maximum amount payable in any year under this agreement is £5,000,000 (which is increased in year 2 to the extent that total fees in year 1 fall below £5,000,000.) In Phase 2, the Company shall pay a fee of 0.75% of NAV, subject to a minimum annual fee of £3,000,000, which increases annually at the lower of CPI, RPI or 5% (from the commencement of the Transition Period.) During the year ending 31 August 2024, the Group incurred fees under the agreement with AEW of £5,000,000 (2023: £1,085,000). At 31 August 2024 and 2023, £384,000 of these fees were unpaid (2023: £1,085,000). Financial Statements Notes to the Consolidated Financial Statements—continued 94     HomeREITplc | AnnualReport | Fortheyearended31August2024 Following the Initial Period, AEW was entitled to an investment management fee equal to 0.75% of NAV per annum, subject to a minimum fee of £3.0 million per annum (rising with inflation). On 22 August 2025, the Company and AEW agreed a revised fee structure with immediate effect, as follows: • A fee of £167,000 per month to expire three months after the date on which the Company holds fewer than 10 properties. • Thereafter, £120,000 per month for a period of three months. • Thereafter, £42,000 per month until termination of the revised IMA. • Subject to an annual cap of £1 million, an additional 10% of gross rent collected from assets owned by the Company and 10% of rent arrears collected, including those recovered through liquidations. The revised IMA may be terminated on six months’ written notice and occur no earlier than 21 August 2026. The revised IMA includes other immaterial amendments. Investment Adviser AHRA was originally appointed as the investment adviser to the Group by entering into the IAA with the Company. Under this agreement, AHRA was to advise the Group in relation to the management, investment and reinvestment of the assets of the Group. Until 4 January 2023, AHRA was a subsidiary of Alvarium RE Limited (now AlTi RE Limited (‘AlTi Re’)) (now in administration). On 4 January 2023, the Company announced that AlTi RE had sold AHRA, its wholly- owned subsidiary, to AHRA’s management in exchange for a promissory note. Initially, the IAA could be terminated on 12 months’ written notice, such notice to expire on or at any time after the fifth anniversary of 12 October 2020. Additionally, the IAA could be terminated with immediate effect on the occurrence of certain events, including insolvency or in the event of a material and continuing breach. On 15 March 2023, the Company and AHRA agreed to terminate the IAA with effect from 30 June 2023. Under the IAA, the investment advisory fees were calculated in arrears in respect of each month, in each case based upon the net asset value (adjusted for undeployed cash) of the Group on the following basis: a One-twelfth of 0.85%, per calendar month of net asset value up to and including £500 million; b One-twelfth of 0.75% per calendar month of net asset value above £500 million up to and including £750 million; and c One-twelfth of 0.65% per calendar month of net asset value above £750 million. During the year ending 31 August 2023, the Group incurred fees with AHRA under the IAA of £5,822,000, offset by credits negotiated by the Directors of £728,000 for a net expense of £5,094,000. At 31 August 2023, no amount of the fee was unpaid. AIFM The AIFM acts as investment manager with responsibility for the management of the assets of the Group in accordance with the investment policy of the Group and the policies and directions of the Board and is regulated in the conduct of investment business by the FCA. Under the terms of the IMA, Alvarium FM (now in administration) was appointed as the AIFM of the Company. Alvarium FM is a subsidiary of Alvarium Investments Limited (now AlTi Asset Management Holdings 2 Limited). Under the IMA, Alvarium FM received a fee of £40,000 per annum. No performance fee was payable to Alvarium FM as at 31 August 2023. The IMA was terminated on 21 August 2023. On the same day, AEW was appointed as AIFM. Compensation for AEW’s role as AIFM is included in the Investment Manager fee discussed above. Corporate Broker Alvarium Securities Limited (now called Ellora Partners Limited) (’Alvarium Securities’) was appointed on 22 September 2020 as corporate broker to the Group. Alvarium Securities is a subsidiary of Alvarium Investments Limited (now called AlTi Asset Management Holdings 2 Limited). Alvarium Securities was paid an annual retainer fee in the amount of £50,000 by the Group and additional fees when equity was raised from investors. The corporate broking agreement with Alvarium Securities was terminated on 8 February 2023. Financial Statements Notes to the Consolidated Financial Statements—continued 19.Relatedpartytransactions—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     95 Directors The Directors are entitled to receive a fee from the Group at such rate as may be determined in accordance with the Articles of Association. The current directors’ compensation is described more fully in the Directors’ remuneration report on pages 52 and 53. Michael O’Donnell is paid a base fee of £100,000 and an additional variable fee of £100,000 (which was reduced to an additional £75,000 from 1 January 2025 and to an additional £50,000 from 1 July 2025), which will reduce as workload declines. Peter William is paid a base fee of £60,000 and an additional fee of £10,000 in his role as Senior Independent Director. Rod Day is paid a base fee of £60,000 and when he succeeds Marlene Wood as Audit Committee Chair, will be paid an additional fee of £10,000. For the year ended 31 August 2024, fees paid to these directors were paid from their various start dates. The legacy directors’ fees are £36,000 for each Director and £50,000 for the Chair. The Chair of the Audit Committee received an additional fee of £5,000. The highest paid director received £124,000 in the year ended 31 August 2024 (2023: £50,000). During the year ended 31 August 2024, Directors’ fees of £330,000 (31 August 2023: £176,000) were paid, of which none was unpaid at 31 August 2024 or 2023. As at 31 August 2024 and 2023, the Directors had the following shareholdings in the Group all of which are beneficially owned: Number of Shares held % of Shares in issue Lynne Fennah 55,000 0.007 Simon Moore 56,000 0.007 Marlene Wood 30,000 0.004 Peter Cardwell 10,000 0.001 20. Reconciliation of liabilities to cash flows from financing activities As at 31 August 2024 As at 31 August 2023 Carrying Value of Carrying Value of Principal Borrowings Principal Borrowings Borrowing (£’000) Borrowing (£’000) Balance at beginning of year 220,000 199,500 250,000 245,047 Cash flows from financing activities Net bank borrowings drawn down – – – 30,467 Bank borrowing held in restricted account – – – 8,881 Restricted cash transferred to unrestricted account – – – (39,348) Loan arrangement fees paid – (142) – (1,567) Non-cash movements Principal payments from restricted cash (109,546) (109,546) (30,000) (30,000) Set-up and unwinding of debt remeasurement adjustment – 16,781 – (14,537) Reclassification of Deferred Fee accrual – 1,100 – – Break gains used to repay bank borrowings (16,632) (16,632) – – Amortisation of loan arrangement fees – – – 501 Loan arrangement fees accrual movement – (23) – 56 Balance at end of the year 93,822 91,038 220,000 199,500 In addition to the allocation from property sales of £100,665,000 used to make principal payments on the outstanding loans (see Note 6), the Group also used the release of restricted cash of £8,881,000 to repay the outstanding loans in December 2023 (see Note 12). Interest payments of £3,791,000 were made from restricted cash accounts during the year. Financial Statements Notes to the Consolidated Financial Statements—continued 19.Relatedpartytransactions—continued 96     HomeREITplc | AnnualReport | Fortheyearended31August2024 21. Contingent liabilities Harcus Parker, a law firm specialising in claimant group actions, is soliciting investors on a fully contingent basis (‘no win no fee’) to join together in bringing claims against the following parties: • the Company; • the Directors Defendants (those directors who were in office when the Shares were suspended); • AHRA; • Alvarium FM; and • AlTi RE, the former principal of AHRA by way of an Appointed Representative Agreement. As of the date of this document, there has been no claim issued by Harcus Parker. Harcus Parker has sent a pre-action letter of claim (enclosing draft particulars of claim) to the Company and Director Defendants (along with the other defendant parties listed above) on behalf of a number of shareholders in the Company, which alleges that the Company and the Director Defendants provided information to investors which was false, untrue and/or misleading and as a result shareholders suffered losses. The Board is not currently able to conclude whether or when a formal claim may be issued and, if a claim is issued, what the quantum of such a claim may be. The Board has stated publicly that both the Company and the Director Defendants intend vigorously to defend the threatened claims. The Company and the Director Defendants sent a lengthy and detailed letter of response to Harcus Parker. On 5 March 2024, the Company announced that it intends to bring legal proceedings against those it considers are responsible for wrongdoing. It remains the Company’s intention to pursue those whom it considers may be liable for the losses it has suffered, subject to a reasonable cost-benefit analysis. To that end, the Company sent pre-action letters of claim to Alvarium FM and AlTi RE on 12 April 2024, and AHRA on 29 May 2024. Both Alvarium FM and AlTi RE have been placed into administration and AHRA is in liquidation, which potentially complicates the ability of the Company to achieve financial recovery from these entities directly. The Company is also assessing the viability of seeking recoveries directly from AHRA, Alvarium FM and AlTi RE’s insurers. On 12 February 2024, the Company was notified by the FCA of its commencement of an investigation into the Company, covering the period from 22 September 2020 to 3 January 2023. The Directors are not able to assess or quantify what if any action may be taken. 22. Loss per Share Loss per share per IFRS is calculated by dividing the loss attributable to ordinary equity holders of the Group by the weighted average number of Shares in issue for the years ended 31 August 2024 and 2023. Amounts shown below are both basic and diluted measures as there were no dilutive instruments in issue throughout the periods. Year ended Year ended 31 August 2024 31 August 2023 Loss (£’000) (25,166) (118,160) Weighted average number of Shares in issue during year (‘000) 790,570 790,570 Loss per share (pence) (3.18) (14.95) Financial Statements Notes to the Consolidated Financial Statements—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     97 23. Net asset value per Share Net asset value per Share is calculated by dividing the consolidated net assets attributable to ordinary equity holders of the Group by the number of Shares outstanding at the reporting date. Amounts shown below are both basic and diluted measures as there were no dilutive instruments in issue throughout the current or comparative periods. Year ended Year ended 31 August 2024 31 August 2023 NAV (£’000) 191,702 216,868 Number of Shares (‘000) 790,570 790,570 NAV per Share 24.25p 27.43p 24. Segmental information Operating segments are identified on the basis of internal financial reports regarding components of the Group that are regularly reviewed by the chief operating decision maker (which in the Group’s case is the Board) in order to allocate resources to the segments and to assess their performance. The internal financial reports contain financial information at a Group level as a whole and there are no reconciling items between the results contained in these reports and the amounts reported in the consolidated financial statements. The Group’s property portfolio comprises investment property. The Board considers that all the properties have similar economic characteristics. Therefore, in the view of the Board, there is one reportable segment. All of the Group’s properties are based in the UK and as such no geographical grouping is considered appropriate for segmental analysis. During the year the Group had three tenants, which were considered to be major customers, contributing more than 10% of the Group’s contractual annual passing rent. The following presents major customers on the rent roll as at the balance sheet date, which excludes tenants associated with properties that have been sold or surrendered back to the Group. For the year ended 31 August 2024 For the year ended 31 August 2023 % of total £’000 % of total £’000 One CIC 32.2% 4,100 11.9% 6,400 LTG Vision CIC 15.6% 2,000 4.2% 2,300 Mears Limited 15.0% 1,900 2.0% 1,100 Redemption Project CIC 0.0% – 11.1% 6,000 Supportive Homes CIC 0.0% – 11.0% 6,000 Other tenants (eachlessthan 10%) 37.2% 4,700 59.8% 32,300 Contracted annual passing rent 100.0% 12,700 100.0% 54,100 * In the prior period LTG Vision CIC and Mears Ltd annual rent was shown as a part of the other tenant’s balance (as less than 10%). Financial Statements Notes to the Consolidated Financial Statements—continued 98     HomeREITplc | AnnualReport | Fortheyearended31August2024 25. Consolidated entities The Company owns 100% of the equity shares of all subsidiaries listed below and has the power to appoint and remove the board of directors of those subsidiaries. The relevant activities of the below subsidiaries are determined by the respective directors based on simple majority votes. Therefore, the Board has concluded that the Company has control over all these entities and all these entities have been consolidated within this set of financial statements. Name of entity Principal activity Country of incorporation Ownership Home Holdings 1 Limited Property investment UK 100% Home Holdings 2 Limited Property investment UK 100% Home Holdings 3 Limited Property investment UK 100% Home Holdings 4 Limited Property investment UK 100% The registered office of the Company and its subsidiaries is 4 th Floor, 140 Aldergate Street, London EC1A 4HY 26. Post balance sheet events Change in strategy On 16 September 2024, Shareholders approved the New Investment Policy which is intended to allow the Company to realise all the assets in the property portfolio in an orderly manner. Director Changes With the publication of the 2023 Annual Report and Accounts on 14 January 2025, Peter Cardwell, Lynne Fennah, Simon Moore and Marlene Wood stepped down from the Board. Disposals From 1 September 2024 to 17 October 2025, the Group exchanged on the sale of 522 properties for gross sales proceeds of £96,533,000. Together with the 1,098 properties exchanged on or prior to 31 August 2024, 1,620 properties have completed for total gross proceeds of £244,088,000. Properties exchanged since 31 August 2024 were presented in the Consolidated Statement of Financial Position as at 31 August 2024 at £99,458,000. Restricted cash Of the retentions held by solicitors at 31 August 2024, £169,000 has been released to the Company, and £341,000 is still held with solicitors as at 17 October 2025. Share Premium Account Following shareholder approval to cancel the Company’s share premium account passed on 20 February 2025, the cancellation of the share premium account in the amount of £595,733,000 was approved by the Court on 29 April 2025 and became effective with the registration of the Court order at Companies House on 2 May 2025. Tenant updates A number of tenants have surrendered leases or gone into creditors voluntary liquidation. Of leases associated with the tenants in place in the 1,375 properties owned by the Group on 31 August 2024, 238 leases were surrendered by the primary tenant and the Group now has a direct lease with the under-tenant, 39 are still in place, 481 properties have been turned over to a property manager and the Group has a direct arrangement with the occupants, 95 are re-tenanted, and 522 have been sold. Lender discussions As a result of the property sales discussed above and application of lockbox amounts against the loan balance, the £120,000,000 loan was fully repaid on 25 September 2024, the £130,000,000 loan was fully repaid on 27 November 2024 and the Deferred Fees were paid on 16 December 2024. Extension of Investment Management Agreement Following the Initial Period, AEW was entitled to an investment management fee equal to 0.75% of NAV per annum, subject to a minimum fee of £3.0 million per annum (rising with inflation). On 22 August 2025, the Company and AEW agreed a revised fee structure with immediate effect, as follows: • A fee of £167,000 per month to expire three months after the date on which the Company holds fewer than 10 properties. • Thereafter, £120,000 per month for a period of three months. • Thereafter, £42,000 per month until termination of the revised IMA. • Subject to an annual cap of £1 million, an additional 10% of gross rent collected from assets owned by the Company and 10% of rent arrears collected, including those recovered through liquidations. The revised IMA may be terminated on six months’ written notice and occur no earlier than 21 August 2026. The revised IMA includes other immaterial amendments. 27. Controlling parties There is no ultimate controlling party of the Group. Financial Statements Notes to the Consolidated Financial Statements—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     99 Company Statement of Financial Position Companynumber:12822709 Note Asat 31August2024 £’000 Asat 31August2023 £’000 Non-current assets Investmentinsubsidiaries 4 – – Investmentproperty 5 – 2,250 Amountsduefromsubsidiaries 6 196,101 218,930 Total non-current assets 196,101 221,180 Current assets Amountsduefromsubsidiaries 6 – – Investmentpropertyheldforsale 5 – 1,060 Tradeandotherreceivables 6 2 23 Cashandcashequivalents 7 121 308 Total current assets 123 1,391 Total assets 196,224 222,571 Non-current liabilities Amountsduetosubsidiaries 8 – – Total non-current liabilities – – Current liabilities Tradeandotherpayables 8 4,522 5,703 Total current liabilities 4,522 5,703 Total liabilities 4,522 5,703 Net assets 191,702 216,868 Capital and reserves Sharecapital 9 7,906 7,906 Sharepremium 10 595,733 595,733 Specialdistributablereserve 11 190,130 190,130 Accumulatedlosses (602,067) (576,901) Total capital and reserves attributable to equity holders of the company 191,702 216,868 Thelossandtotalcomprehensivelossattributable totheshareholdersoftheparentCompanyforthe yearended31August2024amountedto£25,166,000 (2023:£118,127,000). Thenotesonpages101to106formpartofthese financialstatements. TheCompanyfinancialstatementsofHomeREIT plcwereapprovedandauthorisedforissuebythe BoardofDirectorson17October2025andsigned onitsbehalfby: Michael O’Donnell Chair Financial Statements Company Financial Statements 100     HomeREITplc | AnnualReport | Fortheyearended31August2024 Company Statement of Changes in Shareholders’ Equity Fortheyearended31August2024 Note Share capital account £’000 Share premium account £’000 Special distributable reserve £’000 Accumulated losses £’000 Totalequity attributableto ownersofthe Company £’000 Openingbalanceat 1September2023 7,906 595,733 190,130 (576,901) 216,868 Lossfortheyear – – – (25,166) (25,166) Balanceat31August2024 7,906 595,733 190,130 (602,067) 191,702 Fortheyearended31August2023 Note Share capital account £’000 Share premium account £’000 Special distributable reserve £’000 Accumulated losses £’000 Totalequity attributableto ownersofthe Company £’000 Openingbalanceat 1September2022 7,906 595,733 201,040 (458,774) 345,905 Lossfortheyear – – – (118,127) (118,127) Transaction with owners: Dividenddistribution 11 – – (10,910) – (10,910) Balanceat31August2023 7,906 595,733 190,130 (576,901) 216,868 Thenotesonpages101to106formpartofthesefinancialstatements. Financial Statements Company Financial Statements—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     101 1. Basisofpreparation HomeREITplc(the“Company”)isaclosed–ended investmentcompany,incorporatedinEnglandand Waleson19August2020andisregisteredasapublic companylimitedbysharesundertheCompaniesAct 2006withregisterednumber12822709.TheCompany isstructuredasanexternallymanagedcompanywith aboardofnon–executivedirectors(the“Directors” orthe“Board”).Thissetoffinancialstatementshas beenpreparedinaccordancewithFinancialReporting Standard101‘ReducedDisclosureFramework’(“FRS 101”).Wherereferredtoherein,theGroup(the “Group”)consistsoftheCompanyanditssubsidiaries whicharelistedinNote25totheConsolidated FinancialStatements. Disclosureexemptionsadopted InpreparingthesefinancialstatementstheCompany hastakenadvantageofdisclosureexemptions conferredbyFRS101andthereforethesefinancial statementsdonotinclude: • CertaindisclosuresregardingtheCompany’scapital; • Astatementofcashflows; • Theeffectoffutureaccountingstandardsnot yetadopted; • Thedisclosureoftheremunerationofkey managementpersonnel;and • Disclosureofrelatedpartytransactionswithwholly ownedsubsidiariesoftheCompany. TheCompanyhastakenadvantageoftheexemption allowedunderSection408oftheCompaniesAct2006 andhasnotpresenteditsownprofitandlossaccountin thesefinancialstatements. Goingconcern AsdiscussedinmoredetailinNote1tothe ConsolidatedFinancialStatements,theDirectors consideritappropriatetoadoptabasisofaccounting otherthanasagoingconcerninpreparingthese financialstatements. 2. Significantaccountingjudgementsandestimates Thepreparationoffinancialstatementsrequiresthe Directorstomakeestimatesandassumptionsthat effectthereportedamountsofrevenues,expenses, assetsandliabilities,andthedisclosureofcontingent liabilitiesatthereportingdate.Differencesbetween ourestimatesandtheactualresultswillberecognised astheyoccur.Criticalaccountingestimatesand keysourcesofestimationuncertaintyinapplying theseaccountingpoliciesarediscussedbelowand disclosedmorefullyinNote3totheConsolidated FinancialStatements. Valuationofinvestmentproperties TheCompanypresentsitsinvestmentpropertyat fairvalue.Significantassumptionsandmethodsof valuationsareconsistentwiththeGroupdisclosures forwhichdetailsaregiveninNote9oftheConsolidated FinancialStatements. Impairmentofinvestmentsinandamountsdue fromsubsidiaries TheCompanyusesthenetassetsoftheinvestees(which arecomprisedprimarilyofinvestmentproperty)to supportboththeinvestmentsinandamountsduefrom subsidiaries.Whenanimpairmentofaportion(ienotall) ofthosebalancesisconsideredtohaveoccurred,the Companyimpairstheinvestmentinsubsidiarybalance firstandthenanyamountsduefromsubsidiariessecond. Inestimatingthenetassetsavailableforassessing impairment,balancesduefromotherrelatedpartiesare consideredafterotherimpairmentshavebeenrecorded. 3. Principalaccountingpolicies Theprincipalaccountingpoliciesadoptedinthe preparationoftheCompanyFinancialStatementsare consistentwiththeGroupwhicharedescribedinNote2 totheConsolidatedFinancialStatements.Policies adoptedinthepreparationoftheCompany’sFinancial StatementsthatarenotincludedintheConsolidated FinancialStatementsaregivenbelow: a Impairmentofinvestmentsinandamountsdue fromsubsidiaries Investmentinsubsidiariesandamountsduefrom subsidiariesareincludedinthestatementoffinancial positionatcostlessprovisionforimpairment. Thebalancesareassessedforimpairmentateach balancesheetdateorwhenevereventsorchangesin circumstancesindicatethattheircarryingamountmay notberecoverable.Wherethecarryingvalueofanasset exceedsitsrecoverableamount(thehigherofvaluein useandfairvaluelesscoststosell),theassetisimpaired. Becausethenetassetsoftheinvesteessupportboth theinvestmentsinandamountsduefromsubsidiaries, whenanimpairmentofaportion(i.e.notall)ofthose balancesisconsideredtohaveoccurred,theCompany impairstheinvestmentinsubsidiarybalancefirst andthenanyamountsduefromsubsidiariessecond. Inestimatingthenetassetsavailableforassessing impairment,balancesduefromotherrelated partiesareconsideredafterotherimpairmentshave beenrecorded. b Guarantor TheCompanyactsasaguarantortotheloanfacilities oftwoofitssubsidiariesasdescribedinNote10to theConsolidatedFinancialStatements.Atinception, theCompanyrecognisestheguaranteeatcostand subsequentlymeasurestheliabilityatthehigherof: Financial Statements Notes to the Company Financial Statements 102     HomeREITplc | AnnualReport | Fortheyearended31August2024 a. Theinitialcostoftheguarantee;and b. Theexpectedcreditlossesofthefinancial guaranteeoverthelifeoftheunderlyingcontract. TheCompanydidnotreceiveanyremunerationforthe guaranteeanddoesnotexpectanycreditlossesrelated totheguaranteeoverthelifeoftheunderlyingcontract. Accordingly,theCompanyhasnotrecognisedaliability. 4. Investmentinsubsidiaries Investmentinsubsidiariesisincludedinthe statementoffinancialpositionatcostlessprovision forimpairment. Asat 31August2024 £’000 Asat 31August2023 £’000 Originalinvestmentbalance 10,390 10,390 Provisionforimpairment (10,390) (10,390) Investmentsinsubsidiaries atendoftheyear – – Afterconsideringtherecoverabilityofitsinvestments insubsidiaries,theCompanyhasfullyimpairedthe balanceasat31August2024and2023. AlistoftheCompany’ssubsidiaryundertakings isincludedinNote25totheConsolidated FinancialStatements. 5.InvestmentProperty Asat 31August2024 £’000 Asat 31August2023 £’000 Freeholdinvestment propertyatthe beginningyear 3,310 3,447 Propertydisposals duringtheyear (3,310) – Receiptsrelatingtobuildings consideredasunhabitable – (53) Rentstraightliningand leaseinducement – 101 Decreaseinfairvalueof investmentproperty – (185) Totalinvestmentproperty – 3,310 PresentedintheStatement ofFinancialPositionas: Investmentpropertyheldfor sale–current – 2,250 Fairvalueattheendofthe year–noncurrent – 1,060 At31August2023,theinvestmentpropertieswere valuedbyJonesLangLaSalleLimited(“JLL”),an accreditedindependentexternalvaluerwithrelevant andrecentexperienceofvaluingresidentialproperties ofthetypeinwhichtheCompanyinvests. Detailedinformationaboutthevaluationofinvestment propertyisincludedinNote9totheConsolidated FinancialStatements. 6.Tradeandotherreceivables Asat 31August2024 £’000 Asat 31August2023 £’000 Tenantreceivables inaccordancewith leaseagreements 421 456 Rentnotrecognisedbecause propertieswereunhabitable – (156) Tenant receivables 421 300 Otherreceivables 24 45 Prepaidexpenses 31 23 Tenant receivables and otherfinancialassets 476 368 Provisionfordoubtfuldebts (474) (345) Trade and other receivables 2 23 Amountsdue fromsubsidiaries 87,591 102,598 Provisionfordoubtfuldebts (87,591) (102,598) Trade and other receivables – current 2 23 Amounts due from subsidiaries(noncurrent) 651,339 651,339 Provisionfordoubtfuldebts (455,238) (432,409) Tradeandotherreceivables –noncurrent 196,101 218,930 Total receivables 196,103 218,953 Financial Statements Notes to the Company Financial Statements—continued 3. Principalaccountingpolicies—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     103 Allcurrenttradeandotherreceivablesaredue withinoneyear. Amountsduefromsubsidiariesareinterestfreeand repayableondemand.TheCompanyhasclassified theoutstandingbalancesinlinewiththetimingofthe expectedrecoveryoftheseamounts. Afterconsideringtherecoverabilityofamountsdue fromsubsidiaries,theCompanyhasrecognisedcredit lossesintheamountof£7,822,000asat31August2024 (asat31August2023:£535,007,000). TheDirectorsconsiderthattheremaining carryingamountoftradeandotherreceivables approximatesfairvalue. 7.Cashandcashequivalents Asat 31August2024 £’000 Asat 31August2023 £’000 Cashheldatbank 121 308 Total cash and cash equivalents 121 308 8.Tradeandotherpayables Asat 31August2024 £’000 Asat 31August2023 £’000 Amountsduetosubsidiaries – – Non–current liabilities – – Asat 31August2024 £’000 Asat 31August2023 £’000 Tradeandotherpayables 4,522 5,703 Total current liabilities 4,522 5,703 Alltradeandotherpayablesareduewithinoneyear. TheDirectorsconsiderthatthecarryingamountof tradeandotherpayablesapproximatesfairvalue. 9.Sharecapital OrdinarySharesof£0.01each Asat 31August2024 Number Asat 31August2023 Number Atthebeginning oftheyear 790,570,465 790,570,465 Issued and fully paid at year end 790,570,465 790,570,465 Detailedinformationaboutthesharecapitalofthe CompanyisincludedinNote15totheConsolidated FinancialStatements. 10.Sharepremium OrdinarySharesof£0.01each Asat 31August2024 £’000 Asat 31August2023 £’000 Balanceatthe beginningofyear 595,733 595,733 Balance at the end of year 595,733 595,733 Thesharepremiumrelatestoamountssubscribedfor sharecapitalinexcessofnominalvaluelessassociated issuecostsofthesubscriptions. 11.Specialdistributablereserve Asat 31August2024 £’000 Asat 31August2023 £’000 Balanceatthe beginningofyear 190,130 201,040 Balance at the end of year 190,130 190,130 Thespecialdistributablereserverepresentsthe cancelledsharepremium(forthefirstshareissuance) lessdividendspaidfromthisreserve.Thisisa distributablereserve. Financial Statements Notes to the Company Financial Statements—continued 6.Tradeandotherreceivables—continued 104     HomeREITplc | AnnualReport | Fortheyearended31August2024 12.Dividends On16February2023,theBoardannouncedthatexcept foranydistributionsthatwouldberequiredtomaintain REITstatus,thatithasceasedpayinganyfurther dividendsuntilfurthernotice.Nodividendswerepaid intheyearended31August2024(2023:£10,910,000). On12December2022,theCompanydeclaredan dividendof1.38pencepershareinrespectoftheperiod from1June2022to31August2022,whichwaspaidon 20January2023toshareholdersontheregisterasat 22December2022.Thisdividendwaspaidasaproperty incomedistribution. 13.Guaranteeofsubsidiarydebt AsdescribedinNote10totheConsolidatedFinancial Statements,theCompanyprovidedaguarantee toScottishWidowsLimitedontwofixedtermloan facilitieswherewholly–ownedsubsidiariesare theborrowers.On27November2024,theGroup madeitsfinalpaymentontheloansoutstandingto ScottishWidows.TheGrouppaidtheDeferredFee of£9.0millionon16December2024. 14.Contingentliabilities HarcusParker,alawfirmspecialisinginclaimantgroup actions,issolicitinginvestorsonafullycontingent basis(‘nowinnofee’)tojointogetherinbringingclaims againstthefollowingparties: • theCompany; • theDirectorsDefendants(thosedirectorswhowere inofficewhentheSharesweresuspended); • AHRA; • TheCompany’sformerAIFM,AlvariumFund Managers(UK)Limited(“AlvariumFM”);and • AlTiRE,theformerparentofAlvariumFMandAHRA bywayofanappointedrepresentativeagreement. Asofthedateofthisdocument,therehasbeennoclaim issuedbyHarcusParker.HarcusParkerhassentapre– actionletterofclaim(enclosingdraftparticularsofclaim) totheCompanyandDirectorDefendants(alongwith theotherdefendantpartieslistedabove)onbehalfofa numberofshareholdersintheCompany,whichalleges thattheCompanyandtheDirectorDefendantsprovided informationtoinvestorswhichwasfalse,untrueand/or misleadingandasaresultshareholderssufferedlosses. TheBoardisnotcurrentlyabletoconcludewhetheror whenaformalclaimmaybeissuedand,ifaclaimisissued, whatthequantumofsuchaclaimmaybe.TheBoardhas statedpubliclythatboththeCompanyandtheDirector Defendantsintendvigorouslytodefendthethreatened claims.TheCompanyandtheDirectorDefendantssenta lengthyanddetailedletterofresponsetoHarcusParker. On5March2024,theCompanyannouncedthatitintends tobringlegalproceedingsagainstthoseitconsidersare responsibleforwrongdoing.ItremainstheCompany’s intentiontopursuethosewhomitconsidersmaybeliable forthelossesithassuffered,subjecttoareasonable cost-benefitanalysis.Tothatend,theCompanysent pre–actionlettersofclaimtoAlvariumFMandAlTiREon 12April2024,andAHRAon29May2024.BothAlvarium FMandAlTiREhavebeenplacedintoadministrationand AHRAisinliquidation,whichpotentiallycomplicatesthe abilityoftheCompanytoachievefinancialrecoveryfrom theseentitiesdirectly.TheCompanyisalsoassessing theviabilityofseekingrecoveriesdirectlyfromAHRA, AlvariumFMandAlTiRE’sinsurers. On12February2024,theCompanywasnotifiedbythe FCAofitscommencementofaninvestigationintothe Company,coveringtheperiodfrom22September2020 to3January2023.TheDirectorsarenotabletoassess orquantifywhatifanyactionmaybetaken. Financial Statements Notes to the Company Financial Statements—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     105 15.Relatedpartytransactions InvestmentManager On22May2023,AEWUKInvestmentManagement LLP(“AEW”)wasappointedasPropertyAdviserforthe transitionperiodandsubsequentlyon21August2023, onexpiryofthetransitionperiodasAIFMand InvestmentManager(seeAIFMsectionbelow).The transitionperiodlastedfromthedateofappointment untiltheCommencementofPhase1.Phase1continues fortwoyearsfromthedateofcommencement,at whichtimePhase2wouldhavecommenced.Phase1 commencedwhenthefollowingoccurred: 1. TheadoptionoftheAmendedInvestmentPolicy, 2. AlvariumFMandAHRAceasingtoactfortheGroup, 3. FCAapprovaloftheappointmentofAEWasAIFM fortheCompany. DuringtheTransitionPeriod,AEWwaspaid£3,000,000 perannum.AEWispaidanannualfeeinPhase1of theagreement: 1. Afixedfeeof£3,000,000fromthecommencement oftheTransitionPeriodandasincreasedat eachsuccessiveanniversarybythelowerof CPI,RPIand5%; 2. Avariablefeefordisposalofinvestmentsof£422per bed,asdefined;and 3. Avariablefeeof10%ofrentcollectedbytheGroup fromitsinvestments. Themaximumamountpayableinanyyearunder thisagreementis£5,000,000(whichisincreasedin year2totheextentthattotalfeesinyear1fallbelow £5,000,000.)InPhase2,theCompanyshallpayafee of0.75%ofNAV,subjecttoaminimumannualfeeof £3,000,000,whichincreasesannuallyatthelowerof CPI,RPIor5%(fromthecommencementoftheofthe TransitionPeriod.) Duringtheyearending31August2024,theCompany incurredfeesundertheagreementwithAEWof £5,000,000(2023:£1,085,000).At31August2024, £384,000ofthisfeewasunpaid(2023:£1,065,000). FollowingtheInitialPeriod,AEWwasentitledtoan investmentmanagementfeeequalto0.75%ofNAV perannum,subjecttoaminimumfeeof£3.0millionper annum(risingwithinflation).On22August2025,the CompanyandAEWagreedarevisedfeestructurewith immediateeffect,asfollows: • Afeeof£167,000permonthtoexpirethreemonths afterthedateonwhichtheCompanyholdsfewer than10properties. • Thereafter,£120,000permonthforaperiodof threemonths. • Thereafter,£42,000permonthuntiltermination oftherevisedIMA. • Subjecttoanannualcapof£1million,anadditional 10%ofgrossrentcollectedfromassetsownedby theCompanyand10%ofrentarrearscollected, includingthoserecoveredthroughliquidations. TherevisedIMAmaybeterminatedonsix months’writtennoticeandoccurnoearlierthan 21August2026.TherevisedIMAincludesother immaterialamendments. InvestmentAdviser AHRAwasappointedastheinvestmentadvisertothe CompanybyenteringintotheInvestmentAdvisory AgreementwiththeCompany.Underthisagreement, theInvestmentAdviseradvisedtheCompany inrelationtothemanagement,investmentand reinvestmentoftheassetsoftheCompany.On 4January2023,theCompanyannouncedthatAlvarium RELimitedsolditswholly–ownedsubsidiary,Alvarium HomeREITAdvisorsLimited,toitsmanagementin exchangeforapromissorynote. Initially,theInvestmentAdvisoryAgreementcouldbe terminatedon12months’writtennotice,suchnotice toexpireonoratanytimeafterthefifthanniversary of12October2020.Additionally,theInvestment AdvisoryAgreementcouldbeterminatedwith immediateeffectontheoccurrenceofcertainevents, includinginsolvencyorintheeventofamaterialand continuingbreach.On15March2023,theCompanyand AHRAagreedtoterminatetheInvestmentAdvisory agreementwitheffectfrom30June2023. TheinvestmentadvisoryfeespayabletoAHRAwere calculatedinarrearsinrespectofeachmonth,ineach casebasedupontheadjustednetassetvalueofthe Grouponthefollowingbasis: a One–twelfthof0.85%,percalendarmonthofnet assetvalueuptoandincluding£500million; b One–twelfthof0.75%percalendarmonthofnet assetvalueabove£500millionuptoandincluding £750million;and c One–twelfthof0.65%percalendarmonthofnet assetvalueabove£750million. Duringtheyearending31August2023,theCompany incurredfeeswithAHRAundertheIAAof£5,822,000, offsetbycreditsnegotiatedbytheDirectorsof £728,000foranetexpenseof£5,094,000.At 31August2023,noamountofthefeewasunpaid. Financial Statements Notes to the Company Financial Statements—continued 106     HomeREITplc | AnnualReport | Fortheyearended31August2024 AIFM UnderthetermsoftheInvestmentManagement Agreementdated22September2020,Alvarium FundManagers(UK)Limitedwasappointedasthe AlternativeInvestmentFundManager(AIFM)tothe Company.TheAIFMactsasinvestmentmanager withresponsibilityforthemanagementoftheassets oftheCompanyinaccordancewiththeinvestment policyoftheCompanyandthepoliciesanddirections oftheBoardandisregulatedintheconductof investmentbusinessbytheFCA.AlvariumFund Managers(UK)LimitedisasubsidiaryofAlvarium InvestmentsLimited(nowAITiAssetManagement Holdings2Limited),theultimateparentcompanyofthe BrokerandtheInvestmentAdvisertotheCompany. UndertheInvestmentManagementAgreement, theAIFMreceivedafeeof£40,000perannum.No performancefeewaspayabletotheAIFMasat 31August2023and2022.TheAIFMagreementwith AlvariumFundManagers(UK)Limitedwasterminated on21August2023.Onthesameday,AEWUK InvestmentManagementLLPwasappointedasAIFM. CompensationforitsroleasAIFMisacomponentof theInvestmentAdvisoryfeediscussedabove. CorporateBroker AlvariumSecuritiesLimited(nowcalledElloraPartners Limited)(’AlvariumSecurities’)wasappointedon 22September2020ascorporatebrokertothe Company.AlvariumSecuritiesisasubsidiaryof AlvariumInvestmentsLimited(nowcalledAlTiAsset ManagementHoldings2Limited).AlvariumSecurities waspaidanannualretainerfeeintheamountof £50,000bytheCompany.Duringtheyearending 31August2022,theCompanyincurredadditionalfees of£10,413,000fromAlvariumSecuritiesinrelationto equityraisesinSeptember2021andMay2022(none in2023).Thesecostshavebeentreatedasareduction inequityasshareissuecosts.Thecorporatebroking agreementwithAlvariumSecuritieswasterminated on8February2023. Directors TheDirectorsareentitledtoreceiveafeefrom theGroupatsuchrateasmaybedeterminedin accordancewiththeArticlesofAssociation.The currentdirectors’compensationisdescribedmore fullyintheDirectors’remunerationreportonpages 52and53.MichaelO’Donnellispaidabasefeeof £100,000andanadditionalvariablefeeof£100,000, whichwillreduceasworkloaddeclines(whichreduced toanadditional£75,000from1January2025andto anadditional£50,000from1July2025).PeterWilliam ispaidabasefeeof£60,000andanadditionalfeeof £10,000inhisroleasSeniorIndependentDirector. RodDayispaidabasefeeof£60,000andwhenhe succeedsMarleneWoodasAuditCommitteeChair,will bepaidanadditionalfeeof£10,000.Fortheyearended 31August2024,feespaidtothesedirectorswerepaid fromtheirvariousstartdates.Thelegacydirectors’ feesare£36,000foreachDirectorand£50,000 fortheChair.TheChairoftheAuditCommittee receivesanadditionalfeeof£5,000.Duringtheyear ended31August2024,Directors’feesof£330,000 (31August2023:£176,000)werepaid,ofwhichnone waspayableat31August2024or2023. Asat31August2022,theDirectorshadthefollowing shareholdingsintheCompanyallofwhichare beneficiallyowned. Numberof Sharesheld %ofShares inissue LynneFennah 55,000 0.007 SimonMoore 56,000 0.007 MarleneWood 30,000 0.004 PeterCardwell 10,000 0.001 16.Postbalancesheetevents PostbalancesheeteventsoftheCompanyareincluded inNote26totheConsolidatedFinancialStatements. 17.Ultimatecontrollingparty ThereisnoultimatecontrollingpartyoftheCompany. Financial Statements Notes to the Company Financial Statements—continued 15.Relatedpartytransactions—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     107 Additional information 108 Appendix1–KeyRegulatoryNewsServiceAnnouncements 1September2023to17October2025 112 Appendix2–GovernanceandInternalControl 115 Glossary 120 Companyinformation 108     HomeREITplc | AnnualReport | Fortheyearended31August2024 Regulatory News Service Announcements 1 September 2023 to 17 October 2025 Date Title Key 04-Sep-23 Monthly Update JLLtoundertakevaluationsasat31August2022,28February2023and31August2023. VibrantEnergyMattersappointedtoinspectall2,473properties. Revisedaccountingpoliciesforleaseincomerecognitionandacquisitionaccountingare beingfinalised. TheBoardhasinitiatedaformalandphasedsuccessionprocess. SP,RES,D 07-Sep-23 Tenant update SupportiveHomesCIC,atenantrepresenting11.3%ofrentdemandedinAugust2023, hasenteredintoaCVL. T 22-Sep-23 Surrender of leases and transfer of sub-leases Redemptionhasagreedtosurrenderitsleaseson146propertieswithMearsLimited becomingadirecttenantfor77propertiesfortheremainingleaseterm.Forthe remaining69properties,theCompanyhasagreedflexibleleaseswiththeCommunity AccommodationGroupandappointedMyshonLimitedtomanagetheproperties. T 29-Sep-23 Property Sales Exchangedonthesaleof137propertiesforgrossproceedsof£22.8m. PROP 02-Oct-23 Monthly Update Repaymentof£3.8mofdebt. F 06-Nov-23 Monthly Update Exchangedonthesaleofafurther14propertiesfor£9.0mon2November2023. PROP 09-Nov-23 Property Sales Exchangedonthesaleof153propertiesforgrossproceedsof£24.3m. PROP 28-Nov-23 Surrender of leases AgreementwithEdenSafeforthesurrenderofitsleaseson38properties.The CompanywillbeappointingCentrickasPropertyManagertotheseproperties. T 05-Dec-23 Monthly Update MarigoldHousing,whichleases15propertiesrepresenting0.9%ofrentdemandedin November,enteredintoliquidationon15November2023. Repaymentof£17.9mofdebt. TheCompanyandtheLenderhaveagreedanadditionalfeeof5.00%perannumcharged ontheaggregateoutstandingloanbalancesonadailybasisfrom30November2023.The additionalfeeispayableattheearlierof28June2024oronfullrepaymentoftheloans. T,F 20-Dec-23 Property Sales Overlastfivedaysexchangedonthesaleof80propertiesforgrossproceedsof£16.2m. PROP 20-Dec-23 Property Valuation and Portfolio Update JLLhasissueddraftvaluationreportasat31August2023,28February2023and 31August2022. Thereductioninthepropertyvaluationisprincipallyaresultofare-assessmentofthe qualityoftheassetsandofthecovenantstrengthofthetenants. PROP 08-Jan-24 Monthly Update Repaymentof£25.6mofdebt. F 18-Jan-24 Directorate Change AppointmentofMichaelO’DonnelltosucceedLynneFennahasIndependentNon-Executive ChairwithimmediateeffectwithLynneremainingontheBoardtoprovidecontinuity.The remainingmembersoftheBoardunderstandthatshareholderswouldliketoseearefreshof theBoardandsotheywillstepdownonpublicationontheCompany’sfinancialresults. D 24-Jan-24 Property Sales Exchangedonthesaleof103propertiesforgrossproceedsof£6.6m. PROP Additional information Appendix 1  HomeREITplc | AnnualReport | Fortheyearended31August2024     109 Date Title Key 05-Feb-24 Monthly Update Repaymentof£9.9mofdebt. F 13-Feb-24 Notification of Investigation by the FCA TheCompanyhasbeennotifiedbytheFCAofitscommencementofaninvestigation intotheCompany,coveringtheperiodfrom22September2020to3January2023. L 15-Feb-24 Property Sales Exchangedonthesaleof117propertiesforgrossproceedsof£5.6m. PROP 29-Feb-24 Result of General Meeting Shareholdersapprovedthere-electionofMichaelO’DonnellasaDirector SN 05-Mar-24 Monthly Update Repaymentof£13.7mofdebt. TheCompanyintendstobringlegalproceedingsagainstthosepartiesitconsidersare responsibleforwrongdoing. F,L 28-Mar-24 Property Sales Exchangedonthesaleof63propertiesforgrossproceedsof£6.1m. PROP 02-Apr-24 Directorate Change AppointmentofPeterWilliamsasSeniorIndependentNon-ExecutiveDirector. D 04-Apr-24 Monthly Update Repaymentof£5.1mofdebt. F 18-Apr-24 Update on Potential Litigation TheCompanyhasrecentlyissuedacomprehensiveresponsetoapre-actionletterof claimreceivedfromHarcusParker,onbehalfofcertainshareholders. TheCompanyrecentlyissuedpre-actionlettersofclaimtoAlvariumFMandAlTiRE**. L,IA 19-Apr-24 Property Sales Exchangedonthesaleof65propertiesforgrossproceedsof£15.9m. PROP 07-May-24 Monthly Update Repaymentof£3.9mofdebt. F 10-May-24 Property Sales Exchangedonthesaleof76propertiesforgrossproceedsof£14.6m. PROP 29-May-24 Agreement Secured For Surrender Of Leases AgreementwithBigHelpforthesurrenderofitsleasesonover600properties. T 04-Jun-24 Tenant Update NobleTreeFoundationLimited(“NobleTree”)atenantof143propertiesand representingc.7%ofrentdemandedinApril,hasenteredintoadministration. T 05-Jun-24 Monthly Update Repaymentof£8.3mofdebt. TheCompanyhasnowissuedapre-actionletterofclaimtoAHRA. F IA 07-Jun-24 Directorate Change AppointmentofRodDayasIndependentNon-ExecutiveDirector.Rodwillinduecourse ChairtheAuditCommittee. D 17-Jun-24 Update on Re-financing TheBoardhasconcludedthatitwillnotbeabletosecureare-financingoftheexisting facilitywithScottishWidows,ontermsthatitcouldrecommendtoshareholders, despiteextensiveandadvanceddiscussionswithapotentiallender. F 21-Jun-24 Property Sales Exchangedonthesaleof133propertiesforgrossproceedsof£11.36m. PROP Additional information Appendix1—continued 110     HomeREITplc | AnnualReport | Fortheyearended31August2024 Date Title Key 28-Jun-24 Publication of Accounts FurtherdelaytothepublicationofAnnual&InterimReportsnowexpectedfor August2024. RES 03-Jul-24 Monthly update Repaymentof£17.1mofdebt. Theexistinglenderhasrevisedthetermsoftheadditionalfeechargedonthe outstandingloanamountandthe5%feewillincreaseto7%from1July2024until thefullrepaymentoftheloan.TheLenderexpectstobefullyrepaidnolaterthan 31December2024. F 16-Jul-24 Proposed managed wind-down strategy TheCompanyannouncedtheproposedadoptionofamanagedwind-downstrategy pursuanttowhichtheassetsoftheCompanywouldbesoldwiththeobjectivesof optimisingremainingshareholdervalueandrepayingtheCompany’sloanbalance. INV 02-Aug-24 Property Sales Exchangedonthesaleof226propertiesforgrossproceedsof£26.5m. PROP 05-Aug-24 Monthly Update Repaymentof£8.5mofdebt. LynneFennahhasnotifiedtheCompanyofherintentiontostepdownfromtheBoard onthepublicationofthe2023financialresults,butwillcontinuetoassisttheCompany, whennecessary,onhistoriclegalandFCAmatters. F,D 08-Aug-24 Tenant Update One(Housing&Support)CIC,atenantof110propertiesandrepresentingc.7%of propertiesasat31July2024,hasenteredintoadministration. T 14-Aug-24 Agreement Secured For Surrender Of Leases AgreementwithMansitHousingforthesurrenderofitsleaseson68properties. T 23-Aug-24 Notice of General Meeting CircularpublishedcontainingdetailsofproposedamendmentstotheCompany’s AmendedInvestmentPolicy. SN,INV 30-Aug-24 Property Sales Exchangedonthesaleof101propertiesforgrossproceedsof£18.5m. PROP 05-Sep-24 Monthly Update Repaymentof£12.2mofdebt. F 16-Sep-24 Result of General Meeting ShareholdersapprovedtheordinaryresolutionfortheManagedWind-Downstrategy. SN,INV 30-Sep-24 Property Sales Exchangedonthesaleof200propertiesforgrossproceedsof£36.9m. PROP 11-Oct-24 2022 Annual Report and Accounts The2022resultsreflectasubstantiallossanddecreaseinNAVfortheperiod.NAVper sharereducedby57.5%to43.76pence(2021restated:103.03pence)Lossbeforetaxof £474.8m(restated2021:£16.1mprofitbeforetax). RES 14-Oct-24 Monthly Update Repaymentof£21.8mofdebt. F 23-Oct-24 Property Sales and Debt Repayment Update Exchangedonthesaleof152propertiesforthegrossproceedsof£26.8million. PROP 8-Nov-24 Notice of General Meeting TheCompanyhaspublishedaNoticeofGeneralMeetingtobeheldattheofficesof PanmureLiberum,Level12RopemakerPlace,25RopemakerStreet,LondonEC2Y9LY on5December2024at10:00am. SN Additional information Appendix1—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     111 Date Title Key 18-Nov-24 Change in Registered Office Registeredofficewillbe4thFloor,140AAldersgateStreet,London,EC1A4HYwith effectfrom18November2024. SN 28-Nov-24 Repayment Debt FollowingcompletionofpropertysalesinNovember,theGroupmadeafinalrepayment ofdebtintheamountof£28.6million. F 4-Dec-24 Response to announcement from Southey Capital Ltd. TheCompanyacknowledgedtheannouncementofSoutheyCapitalLtd.concerninga tenderofferfortheCompany’sSharesat4penceperShare. RTP 5-Dec-24 Result of General Meeting Shareholdersvotedagainsttheapprovalofthe2022AnnualReportandAccountsandin favouroftheDirectors’RemunerationReport. SN 24-Dec-24 Debt Repayment, Tenant and Accounts Update TheCompanyannouncedthatallDeferredFeeshadbeenpaidandremainingproperties releasedascollateralbytheLenderandthatithadagreedasurrenderon171properties withLTGVision.TheCompanyalsoannouncedthatitwouldfilethis2023AnnualReport andAccountsinJanuary2025. F,T,RES 14-Jan-25 2023 Annual Report and Accounts Released The2023resultsreflectasubstantiallossanddecreaseinNAVfortheperiod.NAVper sharereducedby37.3%to27.43pence(2022:43.76pence).Lossbeforetaxof£118.2m (2022:Lossbeforetaxof£474.8million). PeterCardwell,LynneFennah,SimonMooreandMarleneWoodstooddownasdirectors. RES,D 27-Jan-25 Notice of Annual General Meeting TheCompanyhaspublishedaNoticeofGeneralMeetingtobeheldattheofficesofFTI Consultingat200AldersgateStreet,London,EC1A4HDon20February. SN 20-Feb-25 Trading Update RES,T 20-Feb-25 Result of General Meeting Shareholdersvotedtoapprovethe2023AnnualReportandAccountsandtheDirector’s RemunerationPolicyandinfavouroftheDirectors’RemunerationReport.Inaddition, theexistingdirectorswerere-elected,BDOwasre-appointedasauditortothe Company,theCompanybeauthorisedtopurchaseitsownshares,includingthrough tenderoffers,thatthesharepremiumaccountoftheCompanybecancelledandthata GeneralMeetingoftheCompanycanbecalledonnotlessthan14cleardays’notice. SN 4-April-25 The Company released its interim results for the period to 28 February 2023. RES 29-May-25 Trading update, February 2025 valuation TheCompanyannouncedthat,subjecttoreviewbytheauditors,thevaluationofits portfolioof860propertieswas£169.0millionat28February2025. RES 15-July-25 Response to Recent Announcement TheBoardacknowledgedtherecentannouncementthatAITiReLimitedand AlvariumFundManagersLimitedhaveenteredadministration. L 22-Aug-25 Revision to Investment Management Agreement TheCompanyannouncedrevisedtermsofitsinvestmentmanagement agreementwithAEW. IA 1-Sept-25 Trading Statement TheCompanyannouncedanupdateontheportfoliosale. RES Correction: the RNS announcement dated 18 April 2024 referred to AlTi RE Limited as the Company’s former investment adviser’s “appointed representative” instead of “principal”. Key: D Directors F Financing Update IA Investment Adviser/AIFM/Investment Manager INV Investment Policy L Potential Litigation/FCA Investigation PROP Property – Acquisition, Disposal, Valuation RES Results and trading updates RTP Response to Third Party Reports SA Shareholder Activity – Dividend, Share Issuance SN Shareholder Notice – Annual General Meeting. General Meeting SP Service Provider T Tenant Update Additional information Appendix1—continued 112     HomeREITplc | AnnualReport | Fortheyearended31August2024 Governance and Internal Control Overview of the Company TheCompanyisanexternallymanagedrealestate investmenttrustthathasnoemployees(except LynneFennahsince15January2025,whoadvisesthe Boardonhistoricalmattersonapart-timebasis),only non-executivedirectors.Thenon-executiveBoardis responsibleforleadingandcontrollingtheGroupand hasoverallauthorityforthemanagementandconduct oftheCompany’sbusiness,strategyanddevelopment. Inordertofulfiltheseobligations,theBoardappointed AEWastheInvestmentManagerandAIFMtoprovide investmentmanagementservices. TheDirectorshavecontractuallydelegatedthe managementoftheinvestmentportfolio,the registrationservices,administrationservicesandother servicestothirdpartyserviceprovidersandreliance isthereforeplacedontheinternalcontrolsofthose serviceproviders.AlthoughtheCompany’sexecutive managementfunctionisoutsourced,itremainsthe responsibilityoftheBoardto: i. assesswhethertheoutsourcedfunctionsarebeing performedadequately; ii. ensurethattheCompanyhasadequate resources;and iii. establishprocedurestomonitortheperformance ofthirdpartiesperformingtheoutsourced functions.TheBoardensuresthatthereareclear financialreportinglinesandaccountability,with segregationofduties. Corporate Governance TheBoardisultimatelyresponsibleforreviewingthe effectivenessoftheCompany’soverallinternalcontrol arrangementsandprocesses.TheBoardisresponsible fortheongoingprocessforidentifying,carryingouta robustassessmentof,andmanagingandmitigatingthe principalrisksfacedbytheCompany. TheprincipaldocumentationfortheGovernanceand InternalControlistheFinancialPositionandProspects Procedures(“FPPP”)memorandum.TheFPPP detailsproceduresfortheDirectorstomakeproper judgementsonanongoingbasisastothefinancial positionandprospectsoftheCompany. Theriskmanagementprocessandsystemsof internalcontrolaredesignedtomanageratherthan eliminatetheriskoffailuretoachievetheCompany’s investmentobjectives.Suchsystemscanonlyprovide reasonable,notabsolute,assuranceagainstmaterial misstatementorloss. Theinternalfinancialcontrolsystemsaimtoensure themaintenanceofproperaccountingrecords,the reliabilityofthefinancialinformationuponwhich businessdecisionsaretaken,reportsarepublishedand theassetsoftheCompanyaresafeguarded. Thekeyproceduresincludereviewofmanagement accounts,monitoringofperformanceoftheCompany andAEWatquarterlyBoardmeetings,segregation oftheadministrativefunctionfrominvestment management,maintenanceofappropriateinsurance andadherencetophysicalandcomputersecurity procedures. TheBoardmeetsataminimumquarterlyandmore oftenifrequired.CurrentlytheBoardholdsmonthly reviewmeetingswithAEW.Quarterly(andcurrently monthly)reviewmeetingsfollowstandingagendas withothermattersconsideredappropriatefrom timetotime. Board Responsibility TheBoardhasadoptedaformalscheduleofmatters reservedfordecisionbytheBoard,acopyofwhich isavailableontheCompany’swebsite.These mattersinclude: i. responsibilityforthedeterminationofthe Company’sinvestmentobjectiveandpolicy includinganyinvestmentrestrictions(subjectto anynecessaryshareholderapprovals); ii. overallresponsibilityfortheGroup’sactivities, includingthereviewofinvestmentactivity,gearing, performanceandsupervisionofAEWandotherkey serviceproviders; iii. approvalofAnnualandHalf-YearlyReportsand FinancialStatementsandaccountingpolicies, prospectuses,circularsandothershareholder communications; iv. raisingnewcapitalandapprovaloffinancing facilities; v. approvaloftheCompany’sdividendpolicyand approvalofdividends; vi. approvaloftheNAVoftheGroup; vii. Boardappointmentsandremovals; viii.appointmentandremovaloftheInvestment Manager,AIFM,InvestmentAdviser,Auditorandthe Company’sotherkeyserviceproviders; ix. approvalofmaterialcontractsenteredinto,varied orterminatedbytheCompany; x. corporategovernance,riskmanagement frameworkandinternalcontrol;and xi. compliancewithtaxandotherregulations. AcquisitionsarenolongerpermittedundertheNew InvestmentPolicy. Additional information Appendix2  HomeREITplc | AnnualReport | Fortheyearended31August2024     113 Internal Control Assessment Process Reviewsofinternalcontrolsareundertakenregularly inthecontextoftheCompany’soverallinvestment objective.TheBoardhascategorisedriskmanagement controlsunderthefollowingkeyheadings:investment strategyandoperations;realestatesector;risks relatingtoShares;engagementswiththirdparty serviceproviders;taxation;accounting,operational andfinancialreporting;governanceandregulatory compliance;andemergingrisksincludingclimaterisk. InarrivingatitsjudgementofwhatriskstheCompany faces,theBoardhasconsideredtheCompany’s operationsinlightofthefollowingfactors: i. thenatureandextentofriskswhichitregardsas acceptablefortheGrouptobearwithinitsoverall businessobjective; ii. thethreatofsuchrisksbecomingreality; iii. theCompany’sabilitytoreducetheincidenceand impactofriskonitsperformance;and iv. thecosttotheCompanyandbenefitsrelated tothereviewofriskandassociatedcontrolsof theCompany. Ariskmatrixisinplaceagainstwhichtherisks identifiedandthecontrolstomitigatethoseriskscan bemonitored.Therisksareassessedonthebasisof thelikelihoodofthemhappening,theimpactonthe businessiftheyweretooccurandtheeffectivenessof thecontrolsinplacetomitigatethem.Thisriskregister isreviewedatleasteverysixmonths. Internal Audit Consideration TheBoardkeepstheneedforaninternalauditfunction underperiodicreview.Allkeyserviceprovidersreport atleastannuallyregardingtheirinternalcontrols includingprovisionoftheirISAE3402,orequivalent reports.TheBoardhasconsideredthecost-benefitof engagingindependentreviewofkeyserviceproviders andconcludedtheexistingsystemofmonitoringand reportingbythird-partyserviceprovidersremains appropriate. Review of Governance and Internal Control TheBoardhasconsidereditsriskmanagement framework,internalcontrolsystems,proceduresand processes.TheFPPPwasupdatedinOctober2023with minoramendmentstoreflecttheappointmentofthe newInvestmentManagerandAIFMandtheAmended InvestmentPolicy,furtheramendmentsweremade inSeptember2024includingdetailsofthefinalised accountingpolicies,newBoardmembersandupdateof theriskregisterfortheNewInvestmentPolicy. TheBoardandtheAuditCommittee,hasundertaken arobustassessmentandreviewoftheemergingand principalrisksfacingtheCompanyandtheGroup, togetherwithareviewofanynewriskswhichmayhave arisen,includingthosethatwouldthreatenitsbusiness model,futureperformance,solvencyorliquidity.The riskregisterhasandcontinuestoberegularlyupdated (mostrecentlyinAugust2025)withrespecttothe focusonkeyaspectsoftheManagedWind-Down aftertherepaymentoftheGroup’sborrowingsand associatedfees. Investment Manager TheInvestmentManagerisappointedtoactasAIFM oftheCompanywithresponsibilitytomanagethe assetsoftheCompanyinitiallyinaccordancewith theAmendedInvestmentPolicyoftheCompanyand subjecttotheoverallpoliciesanddirectionsofthe Board.From16September2024,theNewInvestment Policyapplies. AEW’skeyresponsibilitiesincludethefollowing: i. providingAIFMmanagementfunctions includingportfoliomanagementandrisk managementservices; ii. managingtheinvestmentandre-investmentof theassetsoftheGrouponadiscretionarybasisin accordancewiththeAmendedInvestmentPolicy/ NewInvestmentPolicyandinvestmentrestrictions andwithaviewtoachievingtheinvestment objectiveoftheCompany; iii. managingtheborrowingsandgearingin accordancewithpoliciesandguidelinesand managingworkingcapitalandliquiditywithinthe Group’sinvestmentportfolio; iv. monitoringtheperformanceoftheadministrator, thevaluerandthedepositary; v. seekingandevaluatingpotentialinvestments bytheGroup,includingcarryingoutfinancial evaluationandduediligenceandprovidingwritten evaluationsofthefinancial,structuralandlegal issuesrelevanttothepotentialinvestments; vi. performingduediligenceonapprovedinvestments; vii. monitoringandanalysingtheperformanceofthe Group’sinvestments;and viii. performingcreditanalysispriortomakingan investmentandperformingongoingtenant creditanalysis(includingcheckingthatrenthas beenreceivedandfollowingupwithtenantson unpaidamounts). Additional information Appendix2—continued 114     HomeREITplc | AnnualReport | Fortheyearended31August2024 AEWreportskeymattersatthequarterlyBoard meetingsincludingbutnotlimitedto: • FinancialpositionoftheGroup. • PerformanceoftheGroup. • Acquisitionanddisposalofinvestments. • Investmentrestrictionsandcompliance. • Debtleverageandcovenantanalysis. • Tenantandassetupdatesincludingrelevant informationonoccupancy,propertycondition, capexrequirements,rentcollections,credit analysis,andfinancialviability. • Propertymanagersandkeythird-party appointments. • Reportonpropertiesunderseparatemanagement agreements. • Current13-weekan15-monthcashflowforecasts. • InvestmentManagerresourcingandthird-party providers. • Health&Safety–materialmatters. • Anyothermaterialmattersthatshouldbebrought totheBoard’sattention. TheInvestmentManagerhasanestablishedtrack recordofsuccessfullyinvestinginUKrealestate, foundedonarobustanddisciplinedinvestmentand assetmanagementprocess.AEWoperatesamulti- layeredgovernanceframeworkwithchallengeat everylevel.Theunderlyingprincipleoftheprocess istoensurethatclientobjectivesareoptimisedina controlledandriskmanagedenvironment. Asasubsidiaryofoneoftheworld’slargestbanking groups,AEWhasrigorouspoliciesandprocessesin placetoensurecompliancewithallrelevantregulations andlegislation.AEWparticipatesinthewidergroup’s EnterpriseComplianceandRiskProgrammeoperated byNatixisInvestmentManagers(“NatixisIM”),which providesacomprehensivecomplianceandrisk managementframeworkandgovernancestructure basedonthethreelinesofdefencemodel.The principleofthethreelinesofdefencereliesonamulti- tieredapproach: • Firstlineofdefence:riskmanagementcontrolsare integratedintotheoperatingprocessesformalised inclearlydefinedpoliciesandprocedures.Teams arealsorequiredtoparticipateinrelevanttrainings andescalateanypotentialrisk-relatedissuesor incidentstothesecondlineofdefence. • Secondlineofdefence:appropriatereviewand challengeoffirstlineactivities.Thisincludescontrol carriedoutbythecompliancedepartmentthrough thepermanentcontrolprogramme.TheCompliance OfficerandtheRiskManagerbothhaveadditional dualreportinglinesintothelocalCEOandAEW GroupcounterpartsandintotherespectiveNatixis IMChiefComplianceOfficerorChiefRiskOfficer. Thirdlineofdefence:Internalauditundertakenwith independentNatixisIM’scompliancedepartment andauditinspectionsundertakenbyNatixisandthe GroupeBPCE’sauditfunctions. Additional information Appendix2—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     115 Administrator ApexFundandCorporateServices(UK)Limited.The AdministratorisresponsibleforcalculatingtheNet AssetValueoftheOrdinarySharesinconsultationwith theAIFMandtheInvestmentAdviserorInvestment ManagerasrelevantandreportingthistotheBoard AEW AEWUKInvestmentManagementLLP–Investment ManagerandAIFMfrom21August2023 AGM AnnualGeneralMeeting Aggregators Thevariouspropertyvendorsthatenteredintoa settlementagreementdated8December2022 AHRA AlvariumHomeREITAdvisorsLimitednowin liquidation–InvestmentAdviseruntil30June2023 AIC AssociationofInvestmentCompanies.Thisisthetrade bodyforclosed-endedinvestmentcompanies(www. theaic.co.uk) AIC Code TheAICCodeofCorporateGovernance,aspublishedin February2019.Aframeworkofbestpracticeguidance forinvestmentcompanies AIFM AlternativeInvestmentFundManager.Theentitythat providesportfoliomanagementandriskmanagement servicestotheCompanyandwhichensuresthe CompanycomplieswiththeAIFMD.TheCompany’s AIFMwasAlvariumFundManagers(UK)Limiteduntil 21August2023whenAEWUKInvestmentManagement LLPsucceededit AIFMD AlternativeInvestmentFundManagersDirective AlTi RE Limited AHRA’sformerprincipalbyvirtueofanappointed representativeagreement A&M Alvarez&MarsalDisputesandInvestigationsLLP consultingfirminstructedbyBoardinJanuary 2023toconductaninvestigationintoallegationsof wrongdoing,includingmattersraisedintheViceroy ResearchReport Alvarium FM AlvariumFundManagers(UK)Limited,theAIFMuntil 21August2023 Alvarium Securities AlvariumSecuritiesLimited(nowcalledElloraPartners Limited)providedcorporatebrokingservicestothe Groupuntil8February2023 Amended Investment Policy Investmentpolicyapprovedbyshareholderson 21August2023includingaStabilisationPeriod Articles ThearticlesofassociationoftheCompany AssuredShortholdTenancies(“AST”) AtypeofresidentialtenancyinEnglandandWales. Themostcommonformofarrangementthatinvolves aprivatelandlordorhousingassociation BDO BDOLLPistheGroup’sindependentauditor Big Help ComprisesBigHelpHomesCIC,BigHelpProject, CGCommunityCouncil,Dovecot&PrincessDrive CommunityAssociation,N-TrustHomesCIC,Select SocialHousing Broker Athirdpartythatprovidescorporatefinanceadvisory servicestotheCompany,includingresearchand fundraisesupport(includingroadshow,marketingand book-buildingservices).AlvariumSecuritiesLimited actedassoleBrokerfrom21September2020until JefferiesInternationalLimitedwasappointedasJoint Brokerfrom29October2022.AlvariumSecurities Limitedresignedon8February2023.Theagreement withJefferiesInternationalLimitedwasterminatedon 1February2023.LiberumCapitalLimited(nowPanmure LiberumLimited)wasappointedasCapitalMarkets Advisoron5July2023andwillactasBrokerfromthe dateonwhichtheCompany’sordinarysharesarere- admittedtotradingonthepremiumlistingsegmentof theOfficialListandtotradingonthemainmarketof theLondonStockExchange Capital Markets Adviser PanmureLiberumLimited(previouslyLiberumCapital Limited)wasappointedasCapitalMarketsAdviseron 5July2023andwillactasBrokerfromthedateonwhich theCompany’sordinarysharesarere-admittedto tradingonthepremiumlistingsegmentoftheOfficial ListandtotradingonthemainmarketoftheLondon StockExchange CIC ACommunityInterestCompany.Alimitedcompany, withspecialadditionalfeatures,createdfortheuse ofpeoplewhowanttoconductabusinessorother activityforcommunitybenefit,andnotpurelyfor privateadvantage Additional information Glossary 116     HomeREITplc | AnnualReport | Fortheyearended31August2024 Company Home REIT plc Company Secretary ApexFundandCorporateServices(UK)Limited Company website www.homereituk.com Completion Thepointatwhichownershipofthepropertyislegally transferredbydatingthetransferdeed Consolidated Financial Statements TheGroupaccountswhichincludetheCompanyand thesubsidiariesincludedinNote25totheConsolidated FinancialStatements Covenant strength Thestrengthofatenant’sfinancialstatusanditsability toperformthecovenantsinthelease CreditorsVoluntaryLiquidation(CVL) ACreditors’VoluntaryLiquidationisaformalliquidation processwhichbringsabouttheendofaninsolvent company.Liquidationinvolvesthewindingupofa company’saffairs,resultinginthesaleofitsassetsand dissolution.Companiesmayalternativelyenterinto administrationwhichfocusesonrescuingthecompany frominsolvencybyrestructuringitsoperations andfinances Deferred Fees TheDeferredFeeimposedbyScottishWidows computedas:i)0.5%oftheaggregateamounts outstandingonthetwoloansateachof31August 2023and30November2023,andii)afeefrom 30November2023computedastheequivalentof5.0% perannumontheaggregateamountsoutstandingon thetwoloansascomputedonadailybasis,whichfrom 1July2024increasedfrom5%to7%.Allofthesefees arepayableuponfullandfinalrepaymentoftheloans Depositary ApexDepositary(UK)Limitedappointedtoprovide cashmonitoring,safekeepingandassetverificationand oversightfunctionsasprescribedbytheAIFMD Directors Defendents TheDirectorswhowereinplacefrominception to3January2023 Dividend per share Thetotaldividendpaidandproposedinrespectofa perioddividedbythenumberofordinaryshareseligible forthedividendontherecorddate EPC EnergyPerformanceCertificate EPRA EuropeanPublicRealEstateAssociation,theindustry bodyrepresentinglistedcompaniesinthereal estatesector ERV EstimatedRentalValue ESG Environmental,SocialandGovernance Exempt Accommodation Supportedhousingwherethelandlordisanot-for- profitorganisationandprovidescare,supportand supervisiontotheclaimant Exempt Rents RentsinrelationtoExemptAccommodation Exchange Thepointonapropertytransactionatwhichthe contracttosellisexchangedanddatedandbecomes legallybinding Fair Value Theestimatedamountforwhichapropertyshould exchangeonthevaluationdatebetweenawillingbuyer andawillingsellerinanarm’slengthtransactionafter propermarketingandwherepartieshadeachacted knowledgeably,prudentlyandwithoutcompulsion Fair value movement Anaccountingadjustmenttochangethebookvalue ofanassetorliabilitytoitsfairvalue FCA TheFinancialConductAuthority FRI lease Aleasewhichimposesfullrepairingandinsuring obligationsonthetenant,relievingthelandlordfrom allliabilityforthecostofinsuranceandrepairs FPPP FinancialPositionandProspects Proceduresmemorandum FY21 Periodfrom19August2020to31August2021 FY22 Yearended31August2022 FY23 Yearended31August2023 Gross Asset Value TheaggregatevalueofthetotalassetsoftheCompany asdeterminedinaccordancewithIFRS Group HomeREITplcanditssubsidiaries Additional information Glossary—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     117 Groupe BPCE TheultimateownerofAEW.GroupeBPCEisthe second-largestbankinggroupinFrance.Groupe BPCEoperatesintheretailbankingandinsurance fieldsinFranceviaitstwomajornetworks,Banque PopulaireandCaissed’Epargne,alongwithBanque Palatine.Italsopursuesitsactivitiesworldwidewith theasset&wealthmanagementservicesprovided byNatixisInvestmentManagers(NatixisIM)andthe wholesalebankingexpertiseofNatixisCorporate& InvestmentBanking Harcus Parker HarcusParkerLimitedalawfirmspecialisinginclaimant groupactions,solicitinginvestorsonafullycontingent basis(‘nowinnofee’)tojointogetherinbringingclaims againsttheCompanyandotherparties HouseofMultipleOccupation(“HMO”) Rentalpropertywhereatleastthreetenantslive, formingmorethanonehouseholdsharingcommon facilities,suchaskitchensandbathrooms IAA InvestmentAdvisoryAgreementbetween theCompany,AlvariumFMandAHRAdated 22September2020 IFRS UKadoptedinternationalaccountingstandardsin conformitywiththerequirementsoftheCompanies Act2006(“AdoptedIFRSs”) Independent valuer Anindependentexternalvaluerofaproperty.The Company’sexternalvaluerwasKnightFrankforthe periodended28February2022andprior.JLLwas appointedonthe18July2023toretrospectivelyvalue propertiesasat31August2022andsubsequentperiods Investment Adviser AlvariumHomeREITAdvisorsLimited(“AHRA”)the appointedinvestmentadviseruntil30June2023 Investment Manager AEWUKInvestmentManagementLLP(“AEW”), theappointedInvestmentManagerandAIFMfrom 21August2023 IMA InvestmentManagementAgreementbetweenthe CompanyandAlvariumFMdated22September2020 orInvestmentManagementAgreementbetweenthe CompanyandAEWdated22May2023 IPO TheadmissiontotradingontheLondonStock Exchange’sMainMarketofthesharecapitalofthe CompanyandlistingofOrdinarySharestothe premiumsegmentoftheOfficialListoftheFCA, on12October2020 JLL JonesLangLaSalleLimited,theGroup’sIndependent Valuerappointedon18July2023tovalueproperties retrospectivelyasat31August2022and subsequentperiods Knight Frank KnightFrankLLPtheGroup’sindependentvaluerasat 28February2022andpreviousperiods KPIs Keyperformanceindicators Lease incentives/inducements Incentivesofferedtotenantstoenterintoalease. Typicallythiswillbeaninitialrent-freeperiod,oracash contributiontofit-out.Underaccountingrules,the valueoftheleaseincentiveisamortisedthroughthe StatementofComprehensiveIncomeonastraight-line basisuntiltheleaseexpiry Lender ScottishWidowsLimited(“ScottishWidows”) Liberum LiberumCapitalLimited(nowPanmureLiberum CapitalLimited)appointedon5July2023ascapital marketsadviserandwillactasthecorporatebrokerto theCompanyoncommencementofre-listingonthe Company’sshares Listing Rules ThelistingrulesoftheFCAmadeundertheFinancial ServicesandMarketsAct2000asamendedfrom timetotime Loantovalue(“LTV”) Theoutstandingvalueofbankborrowingsasa percentageofthefairvalueofinvestmentproperty asstatedintheindependentvaluation LocalHousingAllowance(“LHA”) Ratesusedtocalculatehousingbenefitfortenants rentingfromprivatelandlords Managed Wind-Down TheCompanybeingmanagedwiththeintention ofrealisingalltheassetsinitspropertyportfolio inanorderlymannerandwithaviewtorepaying borrowingsandmakingtimelyreturnsofcapitalto shareholderswhilstaimingtooptimisevalueforthe Company’sassets Market capitalisation Themid-marketpriceforanordinaryshareofthe Companymultipliedbythenumberofordinary sharesinissue MEC ManagementEngagementCommittee Additional information Glossary—continued 118     HomeREITplc | AnnualReport | Fortheyearended31August2024 MV-VP MarketValue–VacantPossession–referstothevalue ofanincome-producingasset,assumingthereisno tenant.Itrepresentsthevalueofthepropertywithout consideringanyleaseorrentalincome Natixis IM NatixisInvestmentManager,aninternationalasset managementgroupbasedinParis,France,thatispart oftheGlobalFinancialServicesdivisionofGroupe BPCE.NatixisIMiswhollyownedbyNatixis,aFrench investmentbankingandfinancialservicesfirm.Natixis iswhollyownedbyBPCE,France’ssecondlargest bankinggroup NetAssetValue(NAV) NetAssetValueistheequityattributableto shareholderscalculatedunderIFRS NAV per share Equityshareholder,fundsdividedbythenumberof Sharesinissue.Thismeasureallowsacomparisonwith theCompany’ssharepricetodeterminewhetherthe Company’ssharesaretradingatapremiumordiscount toitsNAVcalculatedunderIFRS NAV total return ThepercentagechangeinNAV,assumingthat dividendspaidtoshareholdersarereinvestedatNAV topurchaseadditionalShares.Thisisanalternative performancemeasurethattheCompanytracks,as itisadirectindicatorofthevalueproducedbythe Company’soperations Net break gains/losses Netbreakgainsresultfromprovisionsoftheloan facilityagreementswhich,ateachearlyrepayment event,generateasyntheticinterestrateswap breakageonthefixedrate(effectiveswaprate)element oftheloansresultinginabreakgainorloss,andamake wholeonthemarginsoftheloans(SpensCost) New Investment Policy Investmentpolicyapprovedbyshareholderson 16September2024inrespectoftheManagedWind- DownoftheGroup Noble Tree NobleTreeFoundationLimited Original Investment Policy InvestmentpolicyinplaceatIPOuntil21August2023 Non-PID Non-PropertyIncomeDistribution.Thedividend receivedbyashareholderoftheCompanyarisingfrom anysourceotherthanprofitsandgainsoftheTax ExemptBusinessoftheCompany PID PropertyIncomeDistribution.Adividendreceivedby ashareholderoftheCompanyinrespectofprofitsand gainsofthetaxexemptbusinessoftheCompany Property Adviser AEWUKInvestmentManagementLLPduringthe period22May2023to21August2023 Practical completion Thepointatwhichabuildingprojectiscomplete, exceptforminordefectsthatcanbeputrightwithout undueinterferenceordisturbancetothetenant Property Income Netpropertyincomeandnetgainsonthedisposalof propertywhichareexemptedfromcorporationtaxas longasatleast90%netpropertyincomeisdistributed toshareholderswithin12monthsoftheendofthe financialyear PRS PrivateRentedSector–housingclassificationwhereby propertiesareownedbylandlords(individualsor companies),andleasedouttooccupiers Registrar LinkMarketServicesLimited,(tradingasLinkGroup) hasresponsibilityformaintainingtheregisterof shareholders,receivingtransfersofSharesfor certificationandregistrationandreceivingand registeringshareholders’dividendpaymentstogether withrelatedservices REIT ARealEstateInvestmentTrust.Acompanywhich complieswithPart12oftheCorporationTaxAct2010 SubjecttotherelevantUKREITcriteriabeingmet continually,theprofitsfromthepropertybusinessof aREIT,arisingfrombothincomeandcapitalgains,are exemptfromcorporationtax RNS RegulatoryNewsService,theserviceproviderused bytheGrouptodistributeregulatorynewsand announcements SaleandPurchaseAgreements(“SPAs”) Abindinglegalcontractbetweentwopartiesthat obligatesatransactiontooccurbetweenabuyer andseller Seller’s Works Obligationforthevendorstocompletecertainworks onpropertiesacquired,toensurethattheproperty wasfitforpurposewithinaspecifiedperiod,as definedintheSPAs Additional information Glossary—continued  HomeREITplc | AnnualReport | Fortheyearended31August2024     119 Shares OrdinarySharesof£0.01eachinthecapitalofthe Company.OrdinarySharesarethemaintypeofequity capitalissuedbyconventionalInvestmentCompanies. Shareholdersareentitledtotheirshareofbothincome, intheformofdividendspaidbytheCompany,andany capitalgrowth Share price Thevalueofashareatapointintimeasquotedona stockexchange.TheCompany’sShareswerequoted ontheMainMarketoftheLondonStockExchangeuntil theyweresuspendedon3January2023 Social Use Realestateusedtohousevulnerableindividuals, includingbutnotlimitedtothoseaffectedbyanyofthe followingcircumstances:homelessness,ex-service menandwomen,individualsfleeingdomesticabuse, vulnerablewomen,peopleleavingprison,asylum seekersandrefugees,fostercareleavers,substance misuse,careleavers,mentalillness,disability,specialist supportedlivingandgeneralneedssocialhousing SRI SociallyResponsibleInvestment Stabilisation Period TheperiodpertheAmendedInvestmentPolicy, beginningon21August2023andendingon 21August2025,orsuchlaterdate(notbeinglaterthan 21August2026)approvedbytheBoard,duringwhich theCompanywillhavetheobjectiveofstabilising theGroup’sfinancialconditionthroughinitiativesto maximiseincomeandcapitalreturnsbyinvestingin aportfolioofUKresidentialrealestate Supported Living Housingwheresupportand/orcareservicesare providedtohelppeopletoliveasindependently aspossible. SWLD Seller’sWorksLongstopDate The Good Economy TheGoodEconomyPartnershipLimited,asocial impactassessorandadviserappointed bytheCompany Total shareholder return Thegrowthinvalueofashareholdingoveraspecified period,assumingdividendsarereinvestedtopurchase additionalunitsofstock UK Code TheUKCodeofCorporateGovernancebeingthe codeissuedbytheFinancialReportingCouncilwhich setsoutstandardsofgoodpracticeinrelationto boardleadershipandeffectiveness,remuneration, accountabilityandrelationswithshareholders.All companieswithapremiumlistingofequitysharesin theUKarerequiredundertheListingRulestoreporton howtheyhaveappliedtheCodeintheirannualreport andaccounts Valuer Anindependentexternalvaluerofaproperty.The Company’sexternalvaluerwasKnightFrankLLPforthe periodended31August2021andJonesLangLaSalle Limitedfortheyearended31August2022 Vibrant VibrantEnergyMattersLimited,appointedbythe GroupinAugust2023toundertakeaproperty inspectionprogramme Viceroy Research ViceroyResearchLLP Viceroy Research Report ViceroyResearchreportdated23November2022 Additional information Glossary—continued 120     HomeREITplc | AnnualReport | Fortheyearended31August2024 Companynumber:12822709 Countryofincorporation:EnglandandWales Directors,ManagementandAdvisers Non-ExecutiveDirectors MichaelO’Donnell(Chair) PeterWilliams RoderickDay(“Rod”) Registeredoffice 4th Floor 140 Aldersgate Street London EC1A 4HY InvestmentManager&AIFM AEWUKInvestmentManagementLLP 8Bishopsgate London EC2N4BQ CompanySecretaryandAdministrator ApexFundandCorporateServices(UK)Limited 4thFloor 140AldersgateStreet London EC1A4HY CapitalMarketsAdviser PanmureLiberumLimited RopemakerPlace,Level12 25RopemakerStreet London EC2Y9LY Communicationsadviser FTIConsulting 200Aldersgate AldersgateStreet London EC1A4HD Depositary ApexDepositary(UK)Limited 4thFloor 140AldersgateStreet London EC1A4HY Registrar LinkAssetServices CentralSquare 29WellingtonStreet Leeds LS14DL Independentvaluer JonesLangLaSalleLimited 30WarwickStreet London W1B5NH Auditor BDOLLP 55BakerStreet London W1U7EU Legaladvisers GowlingWLG(UK)LLP 4MoreLondonRiverside London SE12AU Additional information Company Information Designed and produced by Whitehouse Associates, London Home REIT plc Annual Report — For the year ended 31 August 2024