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Walls & Futures REIT plc
Earnings Release • Dec 31, 2024
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Earnings Release
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National Storage Mechanism | Additional information
Walls & Futures REIT PLC (WAFR)
Walls & Futures REIT PLC: Results for the 6 months to 30 September 2024
31-Dec-2024 / 07:00 GMT/BST
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.
31 December 2024
WALLS & FUTURES REIT PLC
(“Walls & Futures” or the “Company”)
Half Year Results for the period to 30 September 2024
Walls & Futures REIT plc (“WAFR”) the Ethical Housing Investor and developer, is pleased to announce its unaudited interim results for the six months to 30 September 2024.
Highlights
- Net Asset Value (NAV) unchanged at 85p per share (31 March 2024 - 85p per share)
- Property assets increased by 2% (£40,000)
- Profit of £8,590 (30 September 2023 - Profit of £45,508)
- 100% of Specialist Supported Housing rents collected
Chief Executive’s Statement
“Despite the challenging economic environment characterised by stagnant economic growth and pervasive pessimism, our real estate portfolio continues to demonstrate robust performance. We are pleased to report a 100% rent collection rate, underscoring the enduring resilience of our tenant base and the quality of our assets.
Our focus on generating long-term, indexed income from high-quality social infrastructure assets has garnered interest from potential investors. We believe that the opportune moment has arrived with the new government’s ambitious target to construct 1.5 million new homes over the next five years. A substantial portion of these developments will be social and affordable housing, and the government is implementing policy changes in order to unlock the private capital necessary to address the housing crisis.
We had anticipated that the Bank of England’s decision to reduce interest rates would inject optimism into the UK real estate market, which combined with the imperative to secure more lucrative returns, would enable us to raise fresh equity sooner. However, the shadow of escalating inflation and growing uncertainty, including over the speed of further Base Rate reductions, has slowed our progress.
On the operational front, we acknowledge the escalating costs associated with being a publicly traded company, particularly in areas of regulation and audit. The Quoted Companies Alliance reported that the average percentage change in audit fees across all markets between 2017/18 and 2022/23 was 127%, with Aquis companies experiencing the lowest average increase of 97%. Given our current size, these increases have had a disproportionate impact on our operations.
Our share price continues to be negatively impacted by the lack of liquidity. Several sales conducted in 2024 resulted in a significant decline in price, leading to a substantial discount between the share price and our Net Asset Value. We have engaged in discussions with the Exchange and our Corporate Adviser to explore potential solutions for addressing this long-term liquidity challenge.
While the opportunities that lie ahead are substantial and promising, we are reviewing our options to safeguard shareholder value and proactively address the evolving needs of our shareholders.”
Joe McTaggart
Chief Executive
Consolidated Income Statement
For the Six-Month Period to 30 September 2024
| 6 Months to 30 September 2024 |
6 Months to 30 September 2023 |
Year ended 31 March 2024 |
|||
| £ | £ | £ | |||
| Rent received | 64,904 | 62,407 | 128,917 | ||
| Cost of sales | - | - | - | ||
| Gross Profit | 64,904 | 62,407 | 128,917 | ||
| Increase in property values | 40,000 | 60,000 | 60,000 | ||
| Other Income | - | 3,569 | - | ||
| Administrative Expenses | (101,127) | (79,485) | (239,077) | ||
| Depreciation | - | - | - | ||
| ____________ | ____________ | ____________ | |||
| OPERATING PROFIT/(LOSS) | 3,777 | 46,491 | (50,160) | ||
| Exceptional item | - | - | - | ||
| Interest receivable and similar income | 4,961 | - | 8,652 | ||
| Interest payable | (148) | (305) | (409) | ||
| ____________ | ____________ | ____________ | |||
| PROFIT/(LOSS) BEFORE TAXATION | 8,590 | 46,186 | (41,917) | ||
| Taxation | - | 678 | 2,163 | ||
| Loss on disposal of fixed assets & depreciation | - | - | - | ||
| ____________ | ____________ | ____________ | |||
| PROFIT/(LOSS) FOR THE FINANCIAL PERIOD | 8,590 | 45,508 | (44,080) | ||
| Other comprehensive income | - | - | - | ||
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 8,590 | 45,508 | (44,080) |
Consolidated Balance Sheet
30 September 2022
| 30 September 2024 | 30 September 2023 | 31 March 2024 | |||||||
| £ | £ | £ | £ | £ | £ | ||||
| FIXED ASSETS | |||||||||
| Investment Property | 2,600,000 | 2,560,000 | 2,560,000 | ||||||
| Investments | 1 | 1 | 1 | ||||||
| CURRENT ASSETS | |||||||||
| Cash at Bank | 624,153 | 753,335 | 691,367 | ||||||
| Debtors and Prepayments | 6,581 | 5,642 | 3,534 | ||||||
| CREDITORS | |||||||||
| Amounts falling due within one year | (38,799) | (39,062) | (67,556) | ||||||
| NET CURRENT ASSETS | 591,935 | 737,425 | 627,345 | ||||||
| TOTAL ASSETS LESS CURRENT LIABILITIES | 3,191,936 | 3,237,426 | 3,187,346 | ||||||
| Provision for Liabilities | - | - | - | ||||||
| Amounts falling due over one year | (3,000) | (10,000) | (7,000) | ||||||
| NET ASSETS | 3,188,936 | 3,269,936 | 3,180,346 | ||||||
| CAPITAL AND RESERVES | |||||||||
| Called up share capital | 187,754 | 187,754 | 187,754 | ||||||
| Share Premium | 3,505,154 | 3,505,154 | 3,505,154 | ||||||
| Fair Value Reserve | 1,226,019 | 1,226,019 | 1,226,019 | ||||||
| Retained Earnings | (1,769,991) | (1,648,992) | (1,738,581) | ||||||
| 3,188,936 | 3,269,936 | 3,180,346 | |||||||
Consolidated Cash Flows
For the Six-Month Period to 30 September 2024
| 30 September 2024 |
30 September 2023 |
31 March 2024 |
|
| £ | £ | £ | |
| Cash flows from operating activities | |||
| Cash generated from operations | (69,027) | (3,516) | (67,400) |
| Interest paid | (148) | (224) | (409) |
| Tax paid | - | - | - |
| Net cash from operating activities | (69,175) | (3,740) | (67,809) |
| Cash flows from investing activities | |||
| Purchase of investment property | - | - | - |
| Sale of tangible fixed assets | - | - | - |
| Sale of fixed asset investments | - | - | - |
| Sale of investment property Development costs recognized in c/year |
- - |
- - |
- - |
| Interest received | 4,961 | 3,569 | 8,652 |
| Net cash from investing activities | 4,961 | 5,569 | (6,000) |
| Cash flows from financing activities | |||
| New loans in year | - | - | - |
| Loan repayments in year | (3,000) | (3,000) | (6,000) |
| Share issue | - | - | - |
| Share buyback | - | - | - |
| Net cash from financing activities | (3,000) | (3,000) | (6,000) |
| Increase/(decrease) in cash and cash equivalents | (67,214) | (3,171) | (65,157) |
| Cash and cash equivalents at beginning of period | 691,367 | 756,524 | 756,524 |
| Cash and cash equivalents at end of period | 624,153 | 753,353 | 691,367 |
The above figures have not been reviewed by the Company’s auditors.
The Directors of the issuer accept responsibility for the contents of this announcement.
For further information, contact:
Walls & Futures REIT PLC 0333 700 7171
Joe McTaggart, Chief Executive
Website www.wallsandfutures.com
Allenby Capital Limited (Corporate Adviser)
Nick Harriss/James Reeve 020 3328 5656
Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse Regulation (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
| ISIN: | GB00BD04QG09 |
| Category Code: | IR |
| TIDM: | WAFR |
| LEI Code: | 213800CJV93R1FPNT553 |
| Sequence No.: | 367738 |
| EQS News ID: | 2059277 |
| End of Announcement | EQS News Service |