Home Reit Share Discussion Threads

[williamcooper104] 04/1/2023 10:45

Of course A non recourse loan and a buy back optionJust a normal commerical transaction and not a scheme to dodge liabilities

[spectoacc] 04/1/2023 08:03

Almost a reasoned comment @wally :)

Interesting tidbit from Citywire re SOHO/CSH (CSH RNS'd this pre-Xmas):

[wallywoo] 04/1/2023 07:24

It is very interesting, imho. Basically, it shows that even those closest to this scenario don't really know what will happen next.


Lots more sh×t hitting the fan, or everything carrying on and Home Reit recovering. The buyback clause says to me they expect the 2nd scenario, but want to hedge just in case. It also shows / implies that a huge effort from all parties will be made to try and sort it all out (with huge implications if they don't).


We will find out over the next month or so. But for me these risks are well covered by such a low share price.

[spectoacc] 04/1/2023 07:02

Missed that - I see Alverium have the right to repurchase it at the same price as the promissory notes in the future.

Did see this - RAT jumping a sinking ship:

[williamcooper104] 04/1/2023 05:42

And the BoD praised the advantages of having Alverium as they got access to all the resources of Alverium Well now they've got an external manager with the same covenant status as most of their tenants How fitting

[williamcooper104] 04/1/2023 05:37

If this isn't the final wake up call to the board to change the external management then you really have to question their sanity

[williamcooper104] 04/1/2023 05:36

Nothing to see here Only Alverium selling the management contract of HOME reit to its management Alverium is SPACing in the US and is clearly seeking to try to avoid liabilities https://www.cityam.com/home-reit-investment-adviser-moves-to-distance-itself-from-troubled-firm-ahead-of-us-listing/Article doesn't say how the £24m was funded but it's highly likely to be vendor loan notes

[williamcooper104] 03/1/2023 14:20

Just a little; but yes I've nibbled

[spectoacc] 03/1/2023 13:36

"...And have made mistakes".

Discuss. Or read this BB.

You might then notice that @Williamcooper104 is long.

[wallywoo] 03/1/2023 13:33

Lol, nah you guys are just trying to knock the idea that Home Reit can survive, as a investment. The reasons why is not likely to be anything other than personal gain.


Imo, there are lots of hotels and B&B's getting rich on both the homeless and the 50k illegal immigration coming into the UK each year. Nobody is saying those places are awful organisations or bad because they are just part of a process.


Home Reit is part of a similar process. It is more sustainable and a better process since it costs less per person and those people get a home (not a bed), so generally they are happier.


Society will evolve to improve this process over the next few years. Home Reit is part, but not the whole solution. I have no doubt it is an improvement to just providing a bed for the night. They are new, growing fast, and have made mistakes. That's why I picked up cheap shares.

[williamcooper104] 03/1/2023 13:04

The solution is that HOME resets it's rents to lower levels such that it's charities are able to spend more on supporting residents plus HOME actually ensures that it's homes are up to standard (at moment it doesn't actually know)

[spectoacc] 03/1/2023 13:02

@wallywoo - be careful not to believe the marketing.

"...And their purpose to provide HMO houses to help with the growing need to house people without homes."

That isn't their purpose. And if it was, wouldn't you rather it was done properly? Frauds do indeed make me angry.

The solution? A programme of council house building. The taxpayer pays c.£3bn/year to the private sector to house people, money often creamed off by the likes of HOME & their "charity" lessees, as well as a vast number of small landlords, who buy up dirt-cheap housing & often play the system.

Imagine how many houses could be built by councils for that £3bn - houses that would serve for years & years. And if sold off under Right To Buy, the money used to build more.

I digress. HOME is an alleged fraud, many of the houses they bought were already being used as HMOs for the vulnerable (so not adding to the stock), and HOME's purpose is to make money off them. How could it be anything other? From a capitalist viewpoint, fine, assuming it's being done properly - that's the system they operate in.

But you seem very keen not to engage with the arguments it's not being done properly, and to repeat HOME's nonsense about them being a force for social good. HOME themselves have not one direct vulnerable tenant. If that sounds like semantics, consider that they seem to have little idea what their lessees get up to.

Fwiw a good two-page article in the recent IC from Mitchell Labiak on the dubiousness of the lessees - well worth a read.

Edit - hopefully readable here:

[wallywoo] 03/1/2023 12:29

Just out of interest Spec, you seem really keen to criticise Home and their purpose to provide HMO houses to help with the growing need to house people without homes.What solution would you recommend?? I really dislike individuals who sound really angry at a organisation (setup to provide homes for homeless), but give no better alternative solution. The UK is in a bit of a mess IMHO. 1000's will and have struggled with rapidly increasing rents, mortgage increases, energy costs and general cost of living. Wouldn't you rather be part of a solution, albeit not a perfect one, rather than just moaning about it all??? Anyone remember Alf Garnett, these guys remind me of him, but a lot less funny though!!

[spectoacc] 03/1/2023 10:05

Amazed they still come out with:


"...Dedicated to providing accommodation to homeless people".

"...To provide high-quality housing for some of the most vulnerable people in society".


As if paying more than double market value for property, leasing it to some very dubious "charities", seeding them with the first 12 months of rent to pay back to HOME, and having next to nothing to do with the actual provision of services nor the quality of the housing, justifies the above.

What a mess. Is it in the price? Who knows, but BDO will have nowhere to hide if they whitewash it.

[williamcooper104] 03/1/2023 09:56

Well this will have a great sharpe ratio for January; with no volatility On 12 Dec we were told that the accounts would be finalised by 31 Jan 23 In todays RNS it's "published by as soon as practicable." So now no commitment to 31 Jan 23

[george stobbart] 31/12/2022 12:10

Yes now I’m more bullish and expecting 2p based on positive outlook and sentiment. The FCA and Met Police are on it so things are progressing well

[wallywoo] 31/12/2022 11:38

Lol, George your last comment said that investors would be lucky to get 1p and probably 0p, if suspended. So now you are saying 2p!!! Whey hey, you wild optimist!!!


Like I said before, the company will announce a suspension at 7am on Tuesday when the markets reopen. We will then need to wait for the results (up to 4 weeks). In the meantime there's a 1.38p dividend paid on the 20/1/23, and possibly a larger dividend in February/March. If I was a betting man, I think the results will come the same day. The only way that suspension would continue was if wide scale fraud was found and that these houses don't exist. I really think that is unlikely.


Who knows what they will reopen at. But as the legal owner of 2459 large HMO houses, currently valued at £211K each (incl debt). I really doubt it will be 2p. I still believe that this will be trading in the 50's in February.


It is the uncertainty that is keeping this low. Imho I believe that this is a opportunity to grab a bargain uncertainty rather than a doom scenario. I think the share price behavior is enforcing that belief. But wtfdik!!

[george stobbart] 31/12/2022 08:49

If it ever resumes trading it’s a 2p easily played

[cruelladeville] 31/12/2022 08:21

There is no RNS from HOME about share suspension?

[cruelladeville] 30/12/2022 13:36

Yes it is. Due filing date is the 31st December. Presumably since today is a Friday we'll see a suspension later thus afternoon. Unless the company files today.

[wallywoo] 30/12/2022 12:17

Yes I think so. A rns will be announced on the first day back next year. It will be suspended until the results are released. Will be an interesting day !!

[hybrasil] 30/12/2022 10:44

Is today the last day of trading before suspension

[hindsight] 23/12/2022 14:21

Re borrow fee, looked and its 2.02% at my broker so not a fortune, appears was 3.5% couple weeks ago so ties in with some closing comments above

[wallywoo] 23/12/2022 11:35

Last chance to buy this high dividend play under 40p, imho.Will be trading in the 50's come February, with another dividend to enjoy!

[spectoacc] 22/12/2022 20:47

Wonder who's lending stock - M&G?

Been some great stuff on this BB, well done those who've posted real research.