Living REIT plc (LIVE), a UK-listed real estate investment trust focused on specialised supported housing, senior living and care homes, has announced the assignment of 29 of its 30 leases previously held with Auckland Home Solutions CIC to Inclusion Home CIC. The portfolio in question represents £2.1 million, or 4.8%, of the Group's Specialised Supported Housing rent roll. The move follows financial difficulties at Auckland and is described by the Investment Manager as a proactive counterparty-risk management measure, with the assignment expected to complete on or before 13 November 2026.

Key Points

  • Living REIT plc (LIVE) is a UK-listed REIT investing in specialised supported housing, senior living and care homes
  • 29 of 30 Auckland Home Solutions CIC leases assigned to Inclusion Home CIC; the remaining property is to be sold
  • The affected portfolio represents £2.1m or 4.8% of the Group's Specialised Supported Housing rent roll
  • Investors should watch for confirmation that the assignment completes without adverse impact on rental income, as the company has indicated

Auckland Home Solutions Financial Difficulties Prompt LIVE's Proactive Lease Transfer

Auckland Home Solutions CIC was an Approved Provider that held leases across 30 properties owned by Living REIT. The announcement states that financial difficulties at Auckland prompted the Investment Manager, Atrato Partners Limited, to act ahead of any potential disruption. The company is clear that this assignment is a counterparty-risk management measure and is not a response to any underperformance of the underlying properties themselves. The remaining property not covered by the assignment is to be sold, with no further details on expected proceeds disclosed in the announcement.

Inclusion Home CIC's G2 V2 Grading and 100% Rent Payment Record Central to Transfer Decision

Inclusion Home CIC is already Living REIT's largest lessee and recently achieved a G2 V2 compliant grading from the Regulator of Social Housing, indicating a standard of governance and viability that the company considers a material positive. The announcement notes that Inclusion pays 100% of rent due under its existing leases with the Group. Consolidating the Auckland leases into a single assignment to Inclusion is described as supporting resident continuity, maintaining reliable rent collection, and preserving the value of the properties within the portfolio.

No Adverse Rental Income Impact Expected, with Potential Valuation Upside Flagged by Atrato Partners

Atrato Partners, acting as Investment Manager, has stated that the assignment is expected to have no adverse impact on rental income as a result of the transition. The announcement goes further, noting the potential for a positive impact on valuation, attributing this to what it describes as a material upgrade to LIVE's overall counterparty risk profile. Managing Director Michael Carey highlighted that the transfer improves the tenant profile of the portfolio and supports continuity for residents, though no specific valuation figures were disclosed in the announcement.

Living REIT's Supported Housing Strategy and Inflation-Aligned Income Model Under Investor Focus

Living REIT invests in structurally supported segments of the UK residential property market, targeting resilient, inflation-aligned income alongside positive social impact. Its portfolio spans specialised supported housing, senior living and care homes — asset classes that provide essential social infrastructure. The Auckland assignment illustrates a sector-specific risk investors in this space face: reliance on Approved Providers whose financial health directly influences rental income stability. How effectively the Group manages such counterparty exposures is likely to remain a key consideration for investors monitoring LIVE's income sustainability.