Home Reit Share Discussion Threads

[triskelion] 20/12/2023 18:24

hxxps://www.cityam.com/home-reit-investors-move-to-sue-the-firm-after-portfolio-craters-in-value/

[catabrit] 20/12/2023 09:18

The scale of gross incompetence and misconduct here baffles me. And I just love that the whole short thesis was laid out in investors chronicle. Amazing.

[spectoacc] 20/12/2023 08:06

That Peterlee one noted above got pulled.

I was looking at Lot 263, 88 Garnett Road, £170k Guide. Sold for a gutsy £635k. Great for HOME, right?

Er, no - I reckon they paid over £1.9m for it. For a property in Hunslett, ffs.

Lynne is shocked, shocked I tells ya.

If the Board aren't the custodians of shareholders money, who is?


Edit - what really irks is them making themselves out as victims, the wool pulled over their eyes by Alvarium. Yet when VR's report came out, they roundly & repeatedly rubbished it, when 10 minutes on Google would have proved eg the silly prices, lack of CapEx, PSR tenants, ropey CICs, dodgy geezers behind the same CICs.

Or 5 minutes reading posts on here (that weren't @wallywoo's).

[williamcooper104] 20/12/2023 07:52

Note the board are "reserving rights" if now isn't the time for letters before action then when is Time to get litigating

[flyer61] 20/12/2023 07:47

Was offered Oriel Crescent Scarborough post auction yesterday. The capEx required to sort it out will run to 10's of thousands. All professional investors in the area had given it a good looking over and what seems a bargain price is actually a heap of trouble.

Going to take years for HOME to get sorted....plenty of time for all 'advisors' to clean up and the board to scamper at a convenient time.

[flyer61] 20/12/2023 07:43

Would you trust these people with ANY capital. They are serial destroyers of it.

[spectoacc] 20/12/2023 07:12

A release just before Xmas, bound to be good news, right?

First point:
"Following the substantial completion by JLL of external inspections of 2,391 properties, comprising 97 per cent. of the Company's property portfolio, in addition to 195 internal inspections..."

They've been in 195 properties, 3%. Do you trust this valuation?


"...The August 2023 valuation representing 42.26% of the unaudited historical acquisition costs of £977.0m (excluding purchase costs). "

As per auction prices they're getting, that's ballpark - will be less than 42% in NAV terms.


"Initial evidence from AEW's ongoing asset management initiatives indicates a larger than expected proportion of the portfolio is private rented sector ("PRS").."

Or - they could have just read VR's short report.


"Accordingly, the Company is not in a position to publish an estimated net asset value at this time. The Board and AEW are committed to continuing to work at pace with BDO to publish the audited results in a timely manner. "

No re-listing imminent.


Sounds like CapEx is going to be very large on what they manage to keep too.
"This has resulted in many properties found to be in need of extensive renovation before they can be occupied or properties that may need to be reconfigured to provide an appropriate number of rooms to suit the local market."


Don't worry though, Lynne Fennah has some soothing words for you:

"Lynne Fennah, Chair of Home REIT, commented:

"The Board is extremely disappointed by the significant value reduction announced today which reflects the information that has come to light regarding the quality of the Company's assets and tenants. This information is in contradiction to reporting provided to the Board during these periods.."


Not us, guv.

[spectoacc] 11/12/2023 12:06

Yes, one of HOME's. Was one of 10 they bought in a block transaction for £848k I believe (it's possible there were other block Peterlee purchases but the numbers won't be substantially different). Post #274 for detail.

Note also that the average c.£85k cost will likely have been bumped up by Knight Frank post-purchase. HOME describe their proceeds from the auction sales as they relate to cost, not to NAV.

Part of the purchase price will likely have been round-tripping of the first 12 months of rent. As we now know, the actual rent in some cases was never enough to maintain payment (see eg the Mears portfolios).

[gpvxxx] 11/12/2023 12:06

At least they could have removed all the trash (bags) before advertising the property.

[gpvxxx] 11/12/2023 11:58

@ SpectoAcc
that Peterlees object - is this a HOME Reit property to be auctioned? What was the purchase price for this?

[spectoacc] 10/12/2023 15:02

Re post #274, among others, more than a year ago now. (& #282 re M&G).

And here's one of those Peterlees, in Allsops this coming week - let's see what it goes for. £30k tops is (still) my guess:

[williamcooper104] 08/12/2023 18:34

In theory some time next year In practise this is basically in administration so it's wait to see if there's a distribution to equity - good chance that there is - but unlikely to be more than a few p share price equivalent If it does list before winding up it will likely gap down to 2-5p

[gpvxxx] 08/12/2023 18:12

Any idea how much longer LSE may suspend trading?

[williamcooper104] 05/12/2023 17:11

Not a lot and you won't like it

[spectoacc] 05/12/2023 16:54

Between Allsop, AEW, the various fake-eo valuers, legals (winding up CICs etc), and now Lloyds, there's a lot of vulture claws in the dwindling HOME pot.

Worst of all - your Board are still drawing salaries/expenses.

There'll still be something left I say - but in the words of the late great Paul Daniels - not a lot.

[williamcooper104] 05/12/2023 16:46

Amusingly HOME is so toxic that we haven't been D for E which is what ought to have happened but hasn't as Lloyd's absolutely doesn't want the reputional risk of owning HOME or putting it into admin

[little beaker] 05/12/2023 15:46

Thought as much, amazed that the loan wasn't repriced much earlier

[williamcooper104] 05/12/2023 08:41

Love the wording "additional fee" and then "per annum" In other words the loans been fully repriced - to be fair I'm sure c7.5 isn't where you could borrow money at for HOME currently (assuming that you could of course)

[terminator101] 05/12/2023 07:42

Monthly reminder that this really is a great big steaming pile of pish.

[spectoacc] 05/12/2023 07:15

Yet more to chew over but a quote for @Wc104 #1258:

"The Company and the Lender have agreed an additional fee of 5.00% per annum charged on the aggregate outstanding loan balances, on a daily basis from 30 November 2023. The additional fee is payable at the earlier of 28 June 2024 or on full repayment of the loans."


Valuer has still only been inside 194 properties - they're selling them faster than that :))

[williamcooper104] 30/11/2023 13:50

I used to enjoy teasing bankers at Allied Irish Bank as the better part of their bad loan book was their fraud book - most of which was loans to Kallachis (a pretend Greek oligarch) - they got about 80-90p back on those - as were all prime London assets - as opposed to 10-40p on their honest Irish development loans

[cc2014] 30/11/2023 13:24

One is a scandal and the other incompetence but I see both ending in the 10-20p area.

[spectoacc] 30/11/2023 13:23

100% be a bust if not for that. Achieving below 40% of cost on most of their sales, yet that isn't NAV, ie not Knight Frank's comedy valuation. Simply what they paid, including the 12 months rent in many cases, and the vast profit to the SPV guy(s), then marked up by KF.

HOME ought to be getting so much more publicity, but only a handful of us seem interested.

[williamcooper104] 30/11/2023 13:17

Yep - that was of course by accident rather than design as they hadn't spent the equity they had recently raised before the shorts started