Home Reit Share Discussion Threads

[glavey] 23/11/2022 12:56

www.themovemarket.com/tools/propertyprices/27-neswick-street-plymouth-pl1-5jj#email-signup

Sale history

27 Neswick Street, Plymouth is valued at £13,127,000 in today's market.

The current owner bought the property in June 2021 for £13,025,000 and has lived here for less than one year.
Date .............. Price .............. Change
Today's value* .... £13,127,000 .......... 0.8%
03 Jun 2021 ....... £13,025,000 ..........11.7%
25 Feb 2021 ....... £11,657,515 .......6,757.4%
25 Feb 2021 ....... £170,000 ........... 359.5%
01 Oct 1999 ....... £37,000

[babbler] 23/11/2022 12:56

Results Monday. Not long to wait.

[wskill] 23/11/2022 12:55

Looking like another easy short for our American friends still lots value here with present yield on UK property,HOME will clean up its act like CSH has.

[williamcooper104] 23/11/2022 12:51

There's two sources of arbitrage going on 1 - you buy a B&B, and fund capex to convert it, and receive an increased rent in return 2 - you buy a B&B and put a government funded charity as the tenant for 25 years and create an uplift in value Ofc if the tenant can't afford the rents then 2 doesn't work

[williamcooper104] 23/11/2022 12:47

Annoying Very little property info Not once - was rent psf mentioned Key question is - ok the covenants aren't great but what's the rent psf/per bed being paid, what rent would an alternative use user - probably a HMO - pay? And how much of a rental reduction would be needed to get the passing rent closer to alternative use, or a higher than alternative use rent that would be affordable by the tenants

[glavey] 23/11/2022 12:28

www.themovemarket.com/tools/propertyprices/144-birches-head-road-stoke-on-trent-st1-6ln

Sale history

144 Birches Head Road, Stoke-On-Trent is valued at £6,659,000 in today's market.

The current owner bought the property in December 2020 for £5,858,702 and has lived here for 1 years.
Date ............ Price .......... Change
Today's value* ...£6,659,000 ...... 13.7%
02 Dec 2020 ..... £5,858,702 ... 2,904.5%
14 Oct 2020 ..... £195,000 ........ 59.2%
25 Oct 2016 ..... £122,500

[williamcooper104] 23/11/2022 12:28

Typical short report There's a lot of good points, legitimate questions to answer But I giggled on page 15 when Viceroy say they've been searching land registry records to find evidence of straight line rents in lease contracts They appear to have zero understanding that sl is as per IFRS - it's not shocking - and you won't find it in a lease agreement That obscures the very legitimate question - will the SL rents ever be fully recoverable given credit quality of tenants

[nexusltd] 23/11/2022 12:17

Viceroy valuation claims:
"On December 2 and 3, 2020, Home Holdings 1 Limited acquired 34 properties .. 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 ...

"On November 6, 2020, Home Holding 3 (previously Allerton SPV17 Limited).. "

From the February 2022 interims P5. "The Group’s portfolio has been independently valued by Knight Frank LLP in accordance with the RICS Valuation – Professional Standards. As at 28 February 2022, the Group’s portfolio had a market value of £713.4 million. The properties have been valued on an individual basis. No portfolio premium has been applied."

Going by the acquisition dates, Viceroy questions property acquisitions that would have been valued in the interims. Are Viceroy therefore claiming that Knight Frank are incompetent charlatans?

[george stobart] 23/11/2022 12:11

avoid this ponzi scheme like the plague

the equity is worth less than zero if we adjust for litigation costs that shareholders will eventually incur

Alvarium is a massive Laundromat

[ny boy] 23/11/2022 12:05

Global real estate slump, those that went on a reckless buying spree with near zero rates are going to suffer big time Vonovia is going to off-load €13B of assets after a share price slump

[babbler] 23/11/2022 11:58

They haveHome REIT plc (ticker: HOME), which funds the acquisition and creation of high-quality properties across the UK that are dedicated to providing accommodation to homeless people, notes the recent report published by a Delaware-based firm specialising in short selling, meaning it profits from any falls in the Company's share price.The report was published without any engagement with the Company's Board, Investment Advisor, or wider advisory team. It is the Board's belief that the report is inaccurate and misleading in its comments about the Company, being based on mistaken assumptions, misinformed comments, and disputable allegations.The Company will publish a full and detailed response demonstrating the factual inaccuracies and selective use of information in due course. This will be published via RNS and on the Company's website as soon as reasonably practicable

[jonwig] 23/11/2022 11:58

LB - thanks for the links.

But D&PD did pay rent in 2020, and their accounts were unqualified in both 2020 and 2021. This certainly needs to be explained, by HOME if not D&PD.

[little beaker] 23/11/2022 11:52

I agree it's quite eye-popping. I hadn't read that far when I wrote my previous post, but those valuations - on the face of it - are shocking. The board will have to put out a statement.

[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: