Home Reit Plc

0.00 (0.0%)
Share Name Share Symbol Market Type Share ISIN Share Description
Home Reit Plc LSE:HOME London Ordinary Share GB00BJP5HK17 ORD GBP0.01
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 38.05 0.00 01:00:00
Bid Price Offer Price High Price Low Price Open Price
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment Trust 11.76 20.93 8.70 12.68 300.81
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 38.05 GBX

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Posted at 30/5/2023 07:23 by spectoacc
Where to begin:

1. "..Does not wish to prejudice its position in respect of any further action which may follow. Accordingly, and mindful of its obligations, there is a limit on the information that the Company feels that it is appropriate to disclose publicly. "
ie this still isn't even all of it.

2. This should have been released months ago, absolutely no excuse

3. Most of what VR said - and HOME Board denied - is true

4. There's more allegations A&M couldn't conclude on

5. The previous RNS's were indeed b*llocks, as was said on here

6. The Board stuck with Alvarium/new-named Alvarium for months and months beyond knowing all this

7. "The Board is still considering the conclusions and implications of the A&M Report with its advisers" - how much longer would it like? Perhaps just beyond the Statute of Limitations?

8. Was AEW shown the A&M report in advance of taking the job? Doubt it.

Yet more questions whether there's a viable business model at all here - rent paid out of capital, CapEx not done, deals between owners & manager not disclosed to market.

Edit - in some ways there's nothing new - most of it discussed/concluded on here - but has taken the Board this long to admit it.

"A&M has identified certain situations in which a settlement was entered into by a number of the Company's tenants and a key developer, without the knowledge of the Board, to release the developer from future liability to complete refurbishment works....The A&M Report identifies that in certain cases these settlement amounts have been utilised by the tenants, with the knowledge of the Investment Adviser, to settle outstanding rent arrears... In addition, A&M has identified a number of examples whereby refurbishment works have not been completed, leading to complaints by tenants and resulting in unlettable properties."

ie HOME thinks (but didn't check?) it's buying refurbished properties. Instead the developer (often with relationships with the tenant) gives money to do the refurb themselves. The tenant instead uses that to pay HOME's rent for a time. HOME can then tell the market it's receiving "..100% of rent..", until the point - surprisingly early - when the rent stops, the money's gone, the CapEx hasn't been done, and per the last line, "...Resulting in unlettable properties".

Shareholders should be very concerned that only 16% (at most, inc last qtr arrears) of rent is now being paid, because it implies the rot goes deep.

"..With the knowledge of the investment advisor.." also seems key, and the only vague bright spot for HOME shareholders.

Posted at 10/5/2023 18:32 by adv11
LATE RNS 10th. MAY 2023
Update regarding possible offer for Home REIT PLC ("Home") by Bluestar Group Limited ("Bluestar")

Since Home's 16 February 2023 announcement, Bluestar has invested significant time and resources in arranging financing, carrying out outside-in due diligence and continuing to engage or attempt to engage with Home on the possible offer. To support this, Home provided Bluestar with limited diligence information in February 2023, but, despite repeated attempts by Bluestar, has provided nothing in the subsequent months. We have also not been provided access to the board of Home (the "Board"). On 14 April 2023 Bluestar submitted a proposal to the Board for the entire issued and to be issued share capital of Home for 40 pence per share in cash (the "Possible Offer"). Any announcement by Bluestar of a firm intention to make an offer pursuant to Rule 2.7 remains subject to the satisfaction or waiver (by Bluestar) of a limited number of customary pre-conditions, including financing, which is at an advanced stage with its anticipated financing providers, and due diligence, which awaits appropriate engagement from Home.

The Possible Offer represents a premium to Home's share price as at suspension of its ordinary shares prior to market open on 3 January 2023 despite a heavily negative news flow and a serious deterioration in Home's rent collections and broader operational performance. Bluestar considers that the Possible Offer provides a route to upfront liquidity, at a valuation level that Bluestar does not anticipate Home achieving in the public markets in the medium term and with significantly reduced execution risk relative to other strategic options that may be available to the Board to deliver value to the shareholders of Home.

Bluestar remains highly motivated and enthusiastic about the Possible Offer but has been frustrated by the lack of engagement from the Board, which has been particularly pronounced in the last three weeks. Home has declined repeatedly to provide a formal response to the Possible Offer but Home's financial adviser, Smith Square Partners ("SSP"), has provided guidance that Bluestar should wait patiently until the Board is able to assess the Possible Offer and provide Bluestar with the requested due diligence information. SSP was also clear that it expected the Board to view favourably any requests by Bluestar to extend the current and future PUSU deadlines. In recent weeks, Bluestar has repeatedly attempted to meet with Home's Chairperson and SSP in order to explore ways in which it might receive information and access in order to progress its due diligence. Bluestar has been disappointed to receive no meaningful engagement with the only meeting that Bluestar was able to schedule between Lynne Fennah, the Home Chairperson, SSP, Bluestar and Numis being cancelled by SSP on behalf of Home at short notice.

On 5 May 2023, Bluestar made a formal request to Home for an extension to the PUSU deadline of 5.00 p.m. on 11 May 2023 (the "PUSU Deadline"). In the subsequent days, we have repeatedly attempted to engage and meet with Home and SSP. On the afternoon of 10 May 2023, approximately 27 hours before the expiration of the PUSU Deadline, SSP delivered the staggering message that the Board had met and decided that it would not grant an extension to the PUSU Deadline as "Bluestar has not sufficiently progressed the Possible Offer." This is despite Bluestar having received no information since February and having been guided by SSP that Home desired Bluestar to wait patiently until the Board is able to assess the Possible Offer and provide Bluestar with the requested due diligence information.

Bluestar considers that the Board should have greater attention to its fiduciary duties to shareholders to promote the success of Home and considers that this Board decision removes a major element of optionality for Shareholders at what is undoubtedly a very difficult time for Home given its suspension, potential delisting and the very challenging circumstances it finds itself in.

It is the firm view of Bluestar that it would be in the best interests of shareholders and other Home stakeholders for the Board to extend the PUSU Deadline and to engage properly with Bluestar on ways to facilitate a streamlined due diligence process. Bluestar considers that the Possible Offer would attract the support of shareholders and so should be permitted to explore whether the Possible Offer can progress to a firm offer that can be presented to shareholders for their consideration. Bluestar is committed to engaging collaboratively with Home and moving expeditiously for the benefit of the shareholders.

Given the imminence of the PUSU Deadline, Bluestar is requesting shareholders to immediately urge the Board to extend the upcoming PUSU Deadline and engage properly with Bluestar on the Possible Offer. Bluestar notes that if the Board continues to refuse to seek to extend the PUSU period by 5.00 p.m. (London time) on 11 May 2023 and Bluestar announces that it does not intend to make an offer, Bluestar will not be allowed to make another offer for 6 months other than in very limited circumstances permitted by the Code.

Important Code notes

As announced by Home on 13 April 2023, in accordance with Rule 2.6(c) of the Code, at Home's request, the Panel on Takeovers and Mergers (the "Takeover Panel") consented to a further extension to the deadline by which Bluestar is required either to announce a firm intention to make an offer for Home in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. Such announcement must be made by not later than 5.00 p.m. (London time) on 11 May 2023.

This revised deadline may be extended further, at the request of the Board of Home and with the consent of the Takeover Panel, in accordance with Rule 2.6(c) of the Code, and the requirement to make an announcement in accordance with Rule 2.6(a) will cease to apply in the circumstances set out in Rule 2.6(b) of the Code (if a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code is announced by another offeror prior to the deadline).

There can be no certainty that an offer will ultimately be made for the Company. A further statement will be made as and when appropriate.

In accordance with Rule 2.5(a) of the Code, Bluestar reserves the right to make an offer for Home on less favourable terms than those described in this announcement: (i) with the agreement or recommendation of the Board of Home; (ii) if a third party announces a firm intention to make an offer for Home which, at that date, is of a value less than the value of the Possible Offer; (iii) following the announcement by Home of a Rule 9 waiver transaction pursuant to Appendix 1 of the Code; or (iv) to the extent that Home declares, makes or pays any dividend or distribution or other payment to its shareholders (in which case Bluestar reserves the right to make an equivalent reduction to the proposed price).

In connection with the possibility of Bluestar making a cash offer for Home (if it were so inclined), Bluestar reserves the right to vary the form and / or mix of the consideration it would offer.

Posted at 21/4/2023 07:50 by cc2014

Home Reit brokers plan float from new firm Ellora Partners

Two of the brokers who helped to float the crisis-hit Home Reit have resurfaced at a new firm seeking to list an emerging markets investment trust in London.

Mark Thompson and Eddie Nissen were part of the Alvarium Securities team that brought the housing for the homeless group to the stock market in September 2020, going on to raise £740 million from investors to buy properties.

They are now looking to raise £100 million for the float of Ashoka WhiteOak Emerging Markets Trust via their new firm, Ellora Partners.

Alvarium Securities quit as Home Reit’s broker in February after the fallout from last November’s short-selling attack by Viceroy Research. It triggered a corporate meltdown that included BDO, the auditor, refusing to sign off the accounts, the suspension of the shares at 38p, a potential sale of the company and a forensic inquiry by Alvarez & Marsal into “allegations of wrongdoing”.

At the same time, Alvarium Investments, the owner of Alvarium Securities, pulled off a wealth management merger with Tiedemann in the United States, offloading the investment manager at the centre of the homeless group’s problems, Alvarium Home Reit Advisors.

Alvarium Securities stepped down from other brokerships, including at VH Global Sustainable Energy Opportunities, Atrato Onsite Energy and Bellevue Healthcare Trust. Last month it was reconstituted as a partnership no longer controlled by Alvarium Investments under the name Ellora Partners.

Its first corporate role is broker to Ashoka, which announced its intention to float last week and said it planned to invest “primarily in quoted securities that provide exposure to global emerging markets”.

Asked if investors were proving reluctant to back another float from the team that listed Home Reit, Thompson said “not at all”. He pointed out that in a former role at Peel Hunt, he had floated the Ashoka India Equity Investment Trust, which had proved a successful listing and now had $5.5 billion under management.

As for his views on Home Reit, he said: “I can’t comment on that. We resigned for a reason that I can’t disclose.”

Last week, the Home Reit board, chaired by Lynne Fennah, said it had “received proposals from six candidates” to act as the company’s new investment adviser, while it also had an “initial draft” of the Alvarez & Marsal report. It said it would announce its “key findings . . . as soon as practicable”.

Posted at 14/4/2023 16:57 by spectoacc
A good laugh to be had from a quick scroll through earlier wallywoo posts.

More worrying is that after so much has been proven/admitted (77% of tenants not paying rent; huge CapEx backlogs; cashflow problems; no dividend; having to return money in escrow to Scot Widows; confirmed fraud in a report they're thus far refusing to release), that the wally still can't see it, and resorts to allegations of agendas, all of which are complete bunkum.

"wallywoo - 30 Nov 2022 - 16:34:49 - 377 of 1007 ::::: HOME REIT ::::: - HOME
M&G own 15.4% of home. Many bgt in the last few weeks. Liontrust nearly another 5%, in the last week or so.

Do poster's really believe that this is fraud when such a respected institutions owns such a lot here. Do you think they do so little due diligence??"

Erm, yes, as I said at the time.

"wallywoo - 01 Dec 2022 - 11:34:40 - 423 of 1007 ::::: HOME REIT ::::: - HOME
Couldn't agree more. The share price will recover at some point. Probably when the full year results come out.

I doubt very much that legal fraud case will come out of this. What will drive this is the yield, which at 5.5p minimum going forward means that the current share price is very cheap.

There's zero chance of financing issues, the company still has £30m left over from the last share placing at 115p in May 22..".

Here's a thought - is that £30m from the last placing, the same £30m that Scot Widows have swiped?

Posted at 24/3/2023 12:21 by edinandy
Several prominent investment managers are preparing proposals to present to the board of embattled Home REIT after the social housing provider signalled its intention to replace the current incumbent, React News can reveal.Atrato Partners, the current investment adviser to Supermarket Income REIT, has been touted as a frontrunner in the process. The firm was behind an attempted listing of supported housing company Independent Living REIT, which was pulled in September last year due to rocky market conditions. David Blakeborough joined in May from Henley Investment Management to lead its investment strategy for social housing.Sources told React News that AEW and RM Funds were also weighing up a tilt at Home REIT's management gig. RM Funds has already publicly declared its interest in taking over as investment adviser.Specialist social housing property manager Simpact Group, recently brought in to asset manage Home REIT's portfolio, could also entertain a submission.The request issued by Home REIT indicated interested parties should submit proposals by the end of March.The listed group said in an update last week that it was in talks with several candidates to replace its current investment manager.Home REIT lets out properties to charities that provide housing for the homelessHome REIT has been rocked by governance issues and the National Crime Agency is looking into allegations of bribery in certain property deals carried out by the firm. The company has also been hit by a sharp fall in rent collection.Alvarium, the previous investment manager to the social housing investor, sold Home REIT's investment adviser to a new entity owned entirely by the management at the start of the year as problems mounted.This publication is intended for use by Cathal Keane at Sheridan Property It may not be copied or disseminated to others without written permission. https://reactnews.com/article/investment-advisers-line-up-proposals-for-home-reit-management-gig/Page 2Bluestar Group trying to raise cashThe company has also received an unsolicited approach from Bluestar Group, which has been in discussions with investors in recent weeks in an attempt to pull together capital to take the REIT private. Broker Numis Securities is advising Bluestar Group on its takeover and fundraising efforts.The investment trust's board originally gave Bluestar until 16 March to formalise its bid or walk away from the deal, however the deadline has now been pushed to 13 April.The little-known firm is a new outfit founded by former Queensgate investment specialist Ben Gotlieb, who also used to work at Alvarium.Companies House records shows that Bluestar used to share office space with Alvarium, which until very recently was Home REIT's investment adviser. A related company, Bluestar Advisors, lists Gotlieb and Jonathan Elkington, Alvarium's head of real estate, as directors.Home REIT declined to comment.
Posted at 01/3/2023 07:01 by spectoacc
Hmm. Tiny RM seem to have spotted a chance to earn fees to counter their c.£0.5m losing investment.

Agree with @Wc104 that this is less about managing an IT, far more about the highly operational property end. If you struggle to keep on top of your own home maintenance, imagine having thousands of boilers/roofs/dodgy tenants to deal with.

Yields are so high on HMOs because they're so much work.

"Managing the IT" would have been about not greatly over-paying for the property in the first place. That ship has long sailed.

"Referring to the ongoing police investigations which could hamper any attempts to improve the situation at Home, Nicholls said the issues were for Alvarium and not the investment company itself."

That's just naive. HOME is going to get sued and fined (particularly for the misleading statements IMO). It isn't just about Alvarium. Ironically, when a co does wrong, it's ultimately the shareholders who get fined.

"‘Trusts are a great innovation of the UK market and we don’t want to see a black mark on it because of one poorly performing company that can easily be addressed.’ "

Lol. He should read this BB. Reminds me of Schroders taking over SUPP from WIM (check the share price since). HOME is neither easily addressed, nor by far the sole black mark on ITs.

"Based on conversations with ‘a good number of shareholders’, no other proposals have been tabled, Nicholls said."

That should surprise & worry shareholders - plenty of mug institutions like M&G ought to be making proposals to try to recoup something. HOME now been delisted from FTSE Russell I see (tho not particularly relevant when it can't even be traded).

Posted at 21/2/2023 08:34 by cc2014
The stock market makes me smile.

So, shareholders want a short seller to take over HOME. It's amazing what people will come up with. So, what they want is a shareholder with a negative shareholding who is financially better off every time the share price falls to apparently run it to drive the share price up and to make themselves worse off in the process?

That's the most perverse incentive I've ever seen. Still this is the stock market for you. Has the idea of a few of the large shareholders getting together to kick out the Board and appoint some new people working in the interest of shareholders not occurred to them.

Posted at 16/2/2023 12:11 by spectoacc
It's the denials that are so strange - we could see some of what was going on (not even the half of it, as it turned out) & that it needed addressing.

Some of the information RNS'd to market about eg collecting 100% of rents was at best misleading, and even a fool (not including some on here, or M&G) could see at least some of the allegations were true.

Hope you only had a small punt here @Wc104 (waiting for @totalWallywoo to tell us he only had 25k shares, or that the bid will be at 50p).

Will be revisiting some of the posts where punters claimed the likes of M&G buying more on the falls were a sign that all was OK.

HOME makes me realise how many frauds must be out there - related party transactions, inflated contracts to mates, carefully hidden value extraction, inflated expenses - that we never spot. HOME utterly brazen, geezers buying HMO properties at auction, flipping them to another SPV to partially cover tracks, flipping on to HOME, sometimes within weeks, at double the price, then also being involved in the "charity" lessee signing the 30 year lease. And using some of HOME's purchase price to cover the rent for long enough to extract the profits and fold the SPVs, seemingly without doing the contracted CapEx.

The backlog of CapEx is far larger than discovered today I bet. Tho about the only good news was that there might be up to £10m of retentions that "may" become available. Wouldn't take much more rent deterioration to make HOME no longer a going concern.

What are the lenders going to do? "We've collected 100% of rent. No, wait - we meant 23%, & need a multiple of that just to catch up CapEx".

Who has the deepest pockets? Going after Link is taking years at WIM; same ahead at Alvarium?

Edit - "Whilst the Board will endeavour to be as open as possible at the forthcoming AGM, there will be a limit to what it can say due to ongoing investigations."

Yeah, I'll bet. HOME's not coming back. The forensics have been at it since early Jan, for them not to be able to announce anything 6 weeks on tells you all you need to know.

Maybe the Simpact "Group" bloke could bid for HOME too?

Posted at 10/1/2023 08:20 by spectoacc
Indeed - the timings will be interesting, tho suspect the HOME board will claim either ignorance (there's a lot they don't seem to know) or that eg the withheld rent was for a later period than covered by their "..Continuing to receive 100%.." statement.

Either way, it's clearly a material change, not communicated to the market.

And it seems to open up a second front:

"A Home Reit spokesman said: “It is incorrect that the lease contains a tenant incentive. As mentioned previously in the rebuttal, the tenant receives rent cover from the vendor, usually equivalent to 12 months, but this is not from Home Reit nor contained in the lease.”"

We knew already that HOME were effectively gifting 12 months of rent in the capital sum paid for the properties (did KF know that?), but there's also a sink fund for refurb too? Fine, but the second front is - none of this is seemingly in the lease between HOME and the charity lessees.

So Noble Tree are withholding rent, but HOME are saying "not us, guv", responsibility technically lying with the SPV who sold the properties to HOME.

But hang on - some of the people involved in the SPVs, are also involved in some of the charity lessees.

And there's multiple SPVs, so what chance do the lessees have of enforcing these payments. The whole point of SPV is "Single Purpose Vehicle", you use it and then fold it. Few will have anything left on the balance sheet.

"Matt Fearnley, the charity’s chief executive, said he would prefer not to be withholding rent from Home Reit, but “we have no choice because they won’t talk to us about this”. He said Noble Tree had received £800,000 towards upgrading the properties so that they could house vulnerable clients, but “the lease promised more”."

Consider what this actually means - the more-than-double prices HOME have been paying for many properties effectively included 12 months of rent (known), but also further funds for eg upgrading properties (we'd suspected all along that little to no CapEx had been done by the SPV owners, particularly when some properties the SPVs bought were flipped again within weeks, and many were already tenanted - and also from the lack of change in the EPCs).

But here's the rub - none of that was in the leases between HOME and the charities. So is it fair to assume Knight Frank weren't told? What about BDO?

How do the lessees enforce the payments? Noble Tree clearly one of the better lessees, and have broken cover, but they're likely wrong that this can be enforced against HOME and will ultimately fail in withholding rent. And perhaps ultimately fail, Circle-style.

In which case, what does the agreement between HOME and the SPV look like, is it enforceable, do any SPVs have any money remaining in them?

What about those lessees who have the same people involved, do we think the bloke wearing his SPV hat has paid out any of his profits to the lessee he set up, for any property improvements?

Posted at 05/1/2023 12:51 by wallywoo
1 year ago Home owned 1580 properties. Today they own 2473. I believe part of the sale price deal was that 12 months rent was provided by the original vendors to the Tennant companies. This was to cover rent while the houses were established. I guess we will hear the auditors opinion on this when the results come out. It is not clear how many houses had this deal and whether it is fraudulent or not. Technically the vendor paid the rent not Home Reit. A bit like a cash back deal. Eg Home spend £400k on a property, vendor gives £20k to Tennants, Tennants gives it back to Home, who pay shareholders a dividend.

So less than 900 homes are currently on this 12 month deal, with less each month. The rest pay rent. All indicators are that all rent is being collected, so far. But let's wait for the results.

Since each house averages 4.8 people per house, the current mkt cap and debt gives a rough value of £211k per house for shareholders. That's what shareholders own here when they purchase at this share price.

Home Reit share price data is direct from the London Stock Exchange
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