(Alliance News) - Home REIT PLC on Wednesday responded to a research report about the London-listed real estate investment trust that it described as "inaccurate and misleading".
Home REIT did not name author of the report, but said that it is a Delaware-based firm that specialises in short selling, meaning it profits from falls in the company's share price. Home REIT was contacted to provide the name of the firm.
A report on Home REIT was published on Wednesday by Delaware-based Viceroy Research. Viceroy said it is shorting Home REIT.
Viceroy said its investigation pointed to a "significant downside" for Home REIT. It claimed several of Home REIT's largest tenant "do not appear to be paying any rent", alleging that "financial accounts show zero outflow".
Viceroy said "publicly available charity financials show that many of these charities may not have the ability to service these leases on a long-term basis".
"Home REIT’s accounts receivables are sitting at 70-plus days as at [half year] 2022, with no impairments recorded," Viceroy claimed.
Viceroy also said that Home REIT's largest clients "all appear to share the same office and are run by the same people" despite claims that it limits exposure per client to 15%.
Viceroy Research concluded by saying "we strongly believe that these are not the people who should be entrusted to look after the vulnerable, nor should they be entrusted with your taxes to do so."
Shares in Home REIT were down 22% to 60.07 pence each in London on Wednesday afternoon.
The London-based homeless accommodation investor said the report was published "without any engagement with the company's board, investment advisor, or wider advisory team."
Home REIT said it was based on "mistaken assumptions, misinformed comments, and disputable allegations".
It will published a "full and detailed response" demonstrating "factual inaccuracies...as soon as reasonably practicable."
By Chris Dorrell; chrisdorrell@alliancenews.com
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