Home Reit has published details of planned changes to its investment policy ahead of a proposed wind-down.
This includes a pledge to defend itself from any allegations made against it, including the threat of group action as an FCA investigation is carried out.
It comes a month after the board concluded it would be in the best interests of shareholders to close the company.
A circular published this morning (August 23) sets out how the company will be run in the lead up to its closure.
It said it will continue to make property sales over the next six months in order to settle its debt with lender Scottish Widows.
It has reduced its debt from £220mn last August to £106mn not including another £34mn of property sales yet to be completed.
As of February 2024, the company had 2,079 properties valued at £341mn and has appointed JLL as sale agents.
The firm added: "Sales will be structured and executed with the intention to achieve best value and to minimise disruption to the underlying occupiers of the portfolio."
A number of these sales will be carried out through auctions. Earlier this month it made £26.5mn by selling a 226 properties over three days of auctions.
Home Reit is working to reduce its debt by selling off properties and preparing to wind down. It has said the tenant had been non-performing and had agreed to an administration process.
The trust was set up in 2020 to invest in the provision of sheltered housing for the homeless but it has since found itself in trouble over mounting debts and the falling value of its portfolio. A portfolio valuation in August 2023, put the company's 2,473 assets at £412.9mn - less than half the amount the trust paid for them.
It has led to hundreds of shareholders hiring lawyers over complaints that a large proportion of the trust's portfolio was in the private rented sector, going against its investment strategy of providing homes for vulnerable people, including the homeless.
On top of this, Home Reit is subject to an FCA investigation, though the regulator has not confirmed what this investigation is covering.
In the latest update, the Home Reit board reiterated its ability to pay shareholders could be constrained in whole or in part by this investigation.
It said: "It should be noted that the company intends vigorously to defend itself in respect of the threatened litigation and has denied the allegations made against it.
"At present, however, the realistic quantum of any possible claims from such potential group litigation against the company is difficult for the board to assess with any degree of accuracy.
"This current position of material uncertainty created by the presence of the potential group litigation against the company is likely to change over time as matters develop."
It has plans to bring legal proceedings against parties it considers responsible for wrongdoing.
