Home Reit Share Discussion Threads

[74tom] 23/11/2022 11:49

You're utterly mad to be buying this IMO.

The worst parts are towards the end regarding prices paid for portfolio assets;

"On February 25, 2021, Home Holdings 1 Limited acquired a portfolio of 28 properties from Pathway Homes. Again, only one transaction stood out from the pack, 27 Neswick Street, Plymouth, a 4-bedroom terrace house which last sold twice for £170k and then £11.657m on February 25, 2021"

"On December 2 and 3, 2020, Home Holdings 1 Limited acquired 34 properties in Stoke-on-Trent. All but one of these transactions was pedestrian with the properties displaying expected appreciation since their last sales. The property at 144 Birches Head Road sold for £5.858m, less than 2 months after a previous sale for £195k"

"The Peterlee portfolio was purchased on October 15, 2021 for a total of £848k from AHG1 Limited. The portfolio was purchased by AHG1 Limited just under a year prior for a total of £326k. We question how this group of small residential properties appreciated ~160% in under 12 months."

"On November 6, 2020, Home Holding 3 (previously Allerton SPV17 Limited) changed hands to Home REIT. In the ~9 months to August 31, 2021 the portfolio appreciated by 123%."

And then there is the extremely aggressive revenue recognition;

"Home REIT records revenue on a “straight-line” basis. This is means that recorded rental income and actual rent collections are not correlated." "Unpaid straight-line rent accrued £1.5m in HY 2022, which accounts for approximately 10.5% of gross profits (£14.8m). These amounts accrue under the “Investment Property” line item."

[little beaker] 23/11/2022 11:43

So the full PDF at hxxps://viceroyresearch.org/wp-content/uploads/2022/11/Home-REIT-No-place-like-Home-REIT-thankfully.pdf states:

"Several of Home’s largest tenants, including Dovecot and Princess Drive do not appear to be paying any rent. Financial accounts show zero outflow, and charity activities do not appear to include social housing."

You can see the annual accounts of DOVECOT AND PRINCESS DRIVE COMMUNITY ASSOCIATION at

According to the article at Dovecot and Princess Drive Community Association make up 6% of Home REIT's rent, with a contracted £2.4m income.

So join the dots, or do some more research.

There is also more on the tenants from page 4 onwards in the report, and it's quite in-depth. Of course you would need to independently analyse and validate what is written, as it stands this is unsubstantiated at this point.

[74tom] 23/11/2022 11:41

The contents of that short report are utterly shocking.

This share should be suspended ASAP by the LSE pending full explanation for the very specific accusations laid out by Viceroy.

[wskill] 23/11/2022 11:40

Started buying now also lots on offer seems overdone 55p leaves a decent amount for £1.11 net assets and borrowings fixed at 2.3 percent.

[jonwig] 23/11/2022 11:37

I'm not clear whether they are attacking the charities who supposedly aren't up to the job, or the landlord.

Whatever, HOME own properties and have a nav of 111p. Are these now worth so much less?
And the tenants? Women's refuges, probation homes, ... eviction not feasible.

[williamcooper104] 23/11/2022 11:14

Wow - that's some drop Had started building a position - got out down 15 percent

[williamcooper104] 23/11/2022 11:13

Yep - CSH already done - wider industry thing and you'd still expect CSH/SOHO to have taken a hit Can't see anything new on the Circle admin - perhaps another tenant has gone into admin? Usually you get a bit of a sell of as the short activists build their position and then the big dip when the publish

[spectoacc] 23/11/2022 11:06

"This industry is nascent, subject to limited oversight, and has begun breeding a plethora of for-profit vultures who have limited ability to actually run a charity or social enterprise."


I'd agree with that. Tho whether that deserves a quarter off the HOME share price in an hour is another matter.

Similar to the goings-on at CSH.

[jonwig] 23/11/2022 10:49

A rebuttal from the Board is essential.

There are two notifiable short positions:

Millennium IM 0.52%
Oasis Inv 0.65%

[jonwig] 23/11/2022 10:45

Results on 28/11 and forecast to have an annual dividend of 5.5p.

There was an issue reported in IC which the board waved away. This is too big a fall to ignore.

Ah! You can read it:

[spectoacc] 23/11/2022 10:41

Haven't read it, & not a holder, but have to say eg CSH's business model I'm not at all keen on.

[spectoacc] 23/11/2022 10:40

"Home Reit's shares have just collapsed 10pc thanks to a mauling from some of Britain's more ferocious stock market bears.

Viceroy Research, a well known short selling boutique, has come out with a note alleging all sorts about the company that specialises in investing the provision of housing for homeless people throughout the United Kingdom."

[spectoacc] 23/11/2022 10:31

No chance IMO, this fall started at 9.34am and has gone on almost an hour, and cost 18% so far - got to be a report somewhere.

[wskill] 23/11/2022 10:30

The not for profit exemption surely covers this.

[jonwig] 23/11/2022 10:27

Yes, I only found it because I looked just now! But is that the right answer? It shouldn't take a week for the market to realise.

[williamcooper104] 23/11/2022 10:23

Presumably the 4% resi developer tax would possibly be an additional cost to HOME buying new units if whoever they are buying them from is subject to it

[williamcooper104] 23/11/2022 10:14

Nothing much happening with CSH and SOHO

[jonwig] 23/11/2022 10:14

William - it might be this, RPDT of 4%:



But then why does it take a week to sink in? (HOME will make nearly £100m this year I guess.)

We've seen about 9m shares traded today, so "summat's up" - or down.

[williamcooper104] 23/11/2022 10:12

Yep - it's likely something like that

[spectoacc] 23/11/2022 10:12

Looks like a short report, but not seen anything.

[williamcooper104] 23/11/2022 09:52

Anyone any idea why the share price tanking today

[jonwig] 01/11/2022 07:21

Trading update:



No gremlins it seems. A 5.5p dividend, fixed interest debt, and 1/4 annual rent rises might not keep up with inflation, but for 85p could be good value.

Sunak and Hunt have stressed that they will protect the most vulnerable from the bad effects of cuts and tax rises. Suggests no nasty surprises here.

FY results 28/11.

[jonwig] 25/10/2022 07:22

Fortunate we sold in early Sept. NAV at end-Feb was 111p so pari passu, the discount is 26%.

It's either very cheap or there are issues lurking. FY results should be imminent. Recently M&G have been buyers, BlackRock sellers.

[williamcooper104] 05/9/2022 15:03

Surprised it didn't get an RNS particularly as they would have been contacted by Investors Chronicle for comment so would have known that the story was likely to come out - so far better to get it out yourself first