Home Reit Share Discussion Threads

[apollocreed1] 24/5/2023 19:49

I feel that the lesson for the standard private investor is that we should stick to blue chips - the kind that Fundsmith holds. These kind of scams are very common and so hard to identify. I even have a large holding in Capital Gearing and they took a hit of between 0.5-1% of their NAV on Home Reit, so they were totally oblivious of the fraud and shenanigans despite having the resources to do thorough research.

[tradez4dayz] 24/5/2023 17:30

Well done to specto and willcooper and others for doing the digging!!

[triskelion] 23/5/2023 22:09

@SpectoAcc - check the last message posted (by HMRC) in that HMRC Community Forums link I posted above. Not terribly helpful is it. Subject to that presumably the applicable price can be had from the LSE Daily Official List - I haven't had to consult it for 11 years but when I did it was to be found in a decent sized local library - compares favourably with the cost of an online page (offhand I don't know if there are limited online freebies).

[williamcooper104] 23/5/2023 10:49

You'd like to think that KF have resigned because of letter before actions having been sent But looks like the Board is going soft on litigation

[spectoacc] 23/5/2023 07:21

"The Company has been given six months' notice by its property valuer, Knight Frank, such that Knight Frank's contract to provide valuation services to the Company will terminate from 3 November 2023. AEW will assist the board with the selection and appointment of a new property valuer."


The new valuer will no doubt be an AEW subsidiary - why pay fees to someone other than yourself.

KF have huge questions to answer. They shouldn't be allowed to disappear into the night.

HOME Board talk about shareholder approval for the investment changes - how can shareholders be expected to form a judgement when the fraud report, that they paid for, still hasn't been released. Nor the hugely overdue accounts.

SOHO are also looking to sell some property - hope they get it away before the HOME flood.

[spectoacc] 23/5/2023 07:08

Changing manager is only part of the problem - supine and ignorant board.

£3.4m collected over 5 months, including from the £11.4m arrears, even with Simpact on the case. Just wow. £6.8m from £40.7m a better way to look at it, so 16% since 31st August 2022.

AEW can't lose either way - reputational damage avoided by the borderline insolvent status of HOME; heroes if they rescue it; get paid either way.

[cc2014] 23/5/2023 07:07

There's not much to say. It's a complete mess.

By the time some assets have been sold to get the debt back under control even more of the NAV will have disappeared. One wonders what the market appetite is for such properties.

[williamcooper104] 23/5/2023 07:00

Indeed no mention of the fraud report - why aren't they suing Alverium Notice that Knight Frank have resigned - not often you see a valuer take their ball away

[williamcooper104] 23/5/2023 06:55

Staggering how Alverium stated that they'd collected the full rent Outright fraudy behaviour

[spectoacc] 23/5/2023 06:19

You're welcome @triskelion. Do those links say what base price once out of ISA - is it last traded price?


Plenty from HOME this morning - AEW to be new manager, as was leaked.

"AEW's immediate priorities will be to undertake a thorough review of the Company's assets to help inform a longer-term strategy for the portfolio...."

So AEW don't actually know the full mess yet? Some of it is further down the RNS:


"On 16 February 2023, the Company announced that, for the quarter ended 30 November 2022, only 23% of rent had been collected, meaning that out of a £14.8 million quarterly rent roll, only £3.4 million had been paid. During the five months ended 30 April 2023, the Company collected a total of approximately £3.4 million, including sums in relation to rent arrears, from tenants. Rent demanded during the same period was £25.9 million"


So as predicted, rent collection slid further, possibly as low as 10% depending on how much of the £3.4m was arrears.

As usual with HOME, it's even worse than feared. Rent collection staggeringly bad, guessing no CapEx/maintenance being done either.

They're down to £18m of cash and looking to sell properties - presumably those that still show an income stream?

"Following the appointment of AEW, the Board intends to proceed with the sale in the near term of a number of properties, as the Company works to stabilise its property portfolio, provide additional liquidity and reduce its borrowings."

AEW will deserve their fees if they can pull HOME out of this death spiral. Working capital is desperately needed, CapEx desperately needed, and Scottish Widows will be very keen to be repaid ASAP (as shown by swiping £30m recently).

What are run-down properties with non-paying sitting tenants worth, from a desperate seller? And what have HOME been doing all these months, they should have at least booted out some non-payers and replaced them with the usual connected CICs by now.

Wot no fraud report? Wot no accounts? Wot no rent collection benefit from Simpact Group (31 yr old)?

[triskelion] 22/5/2023 19:40

@SpectoAcc
Thanks for the heads-up, I actually bought a paper copy of the IC for the first time in 30 years and was struck by how slender it is compared with before! Anyway the article was useful as it helped me dig a little further and find e.g.


and

[spectoacc] 15/5/2023 15:28

Having had my IC finally appear in the post box this afternoon, there's an interesting point in it about delisted shares held in an ISA.

Your deemed purchase price is the value at delisting, ie when the shares are removed from the ISA. Not sure how that's arrived at, whether it's last traded price, but there's a scenario where you selli at a loss, but still have a CGT liability. Eg buying HOME at 60p in ISA, value on removal from ISA 10p, eventual sale at 30p. Halved your money, yet owe CGT on 20p/share.

Probably, in fairness, the least of HOME shareholders' worries atm.

[cc2014] 15/5/2023 07:18

De-listing is going to require a set of accounts.

I think a set of accounts with qualifications by the auditors will be coming along.

[williamcooper104] 13/5/2023 14:54

Apparently a company can only stay un-listed for 6 months before being de-listed So something needs to happen soon

[williamcooper104] 12/5/2023 13:36

It's a question of not so much what HOMEs today NAV is but what NAV it can get to upon executing a business plan to spend refurb capex and get proper tenants in

[williamcooper104] 12/5/2023 13:35

Easily half CSH was I think sold a little cheaply, especially given the in place debt (even if 5.5 NIY on the book value looks a little optimistic) - CK bought into the management company first

[spectoacc] 12/5/2023 13:18

Even the CSH bid was miles below NAV (80p vs 111p I believe), and CSH (& SOHO) have the supported living/regulated tenancies (mostly), unlike HOME.

Guess another way to look at it is - what is HOME's real NAV now. Until we know how many/any are paying their rent, that's a tough one to guess. Minimum halved IMO.

[williamcooper104] 12/5/2023 12:21

Agreed - board generally have been too slow - ought to have appointed a new manager months ago Plus don't know why they couldn't have released by now very caveated accounts - they've an estimate as to what the capex liability is - so far better to get the ugly accounts out and the company re-listed The new manager will of course want to kitchen sink; albeit the kitchen sink is vomiting like the girl in the Exorcist The CSH bid at least gives comfort that with the house in order there's a viable end state

[spectoacc] 12/5/2023 11:52

Lol @Wc104, that's annoying.

AEW would be a positive, but I'd be wary of what they find. The big shareholders will want to keep it going/not risk a disorderly collapse impacting tenants, but there's really no excuse at all for April's fraud report, paid for by shareholders, not being released. That speaks volumes unfortunately.

[williamcooper104] 12/5/2023 08:26

Cheers Specto Who knows where HOME will end up - I've a little more confidence it's not a zero - but I've still written it of in my books - though annoyingly my broker keeps writing it of and then restating it - so I get it though my P&L every few weeks as a reminder

[spectoacc] 12/5/2023 07:37

Completely missed another late-evening RNS yesterday, this time from HOME, in response.

"The Board believes that progressing Bluestar's proposal at this time is unlikely to maximise value for shareholders. The Board and its financial adviser have given particular consideration to the significant uncertainties in relation to the deliverability of Bluestar's non-binding and indicative proposal, including its key valuation assumptions, extensive due diligence requirements and extremely limited information on its financing."


Hey, they think it's worth more! "Unlikely to maximise value".


No, wait - "..Including its key valuation assumptions". Rofl. Oh dear.


"The Board will not proactively pursue a sale of the Company at this time and therefore this part of the review of strategic options announced on 16 February 2023 is now concluded. The Board and its new investment adviser, when appointed, will continue to monitor this position, in particular once it is in possession of a new property valuation."


Look out for AEW being appointed - this would be a positive - but then look out for a kitchen-sinking, Simpact Group (31 yr old) exiting, and what the latest rent collection is - my guess is, well below the 23% previously reported.

Have never known a Board keep shareholders more in the dark than HOME's - still no release of the fraud report.

[elbrus55] 11/5/2023 16:06

I don't know what you mean by 'Alvarium stumping up the cash' .Do they have any material cash?Bluestar doesn't have any material cash either, based on public information.

[1tx] 11/5/2023 13:09

.....and the star fund managers at M&G and other "institutions" do not seem to want to draw attention to the fact that they have collectively put around a billion pounds of clients money into this outfit by demanding an enquiry.Move on;nothing to see here!