Home REIT says Viceroy Research is 'inaccurate and misleading'
By Michele Maatouk
Date: Wednesday 23 Nov 2022
(Sharecast News) - Home REIT responded on Wednesday to a recent report published by a Delaware-based short-selling firm which sent its shares tumbling.
The company, which funds the acquisition and creation of properties across the UK that are dedicated to providing accommodation to the homeless, said the report was published without any engagement with the 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," it said.
Home REIT said it will publish a full and detailed response "demonstrating the factual inaccuracies and selective use of information in due course". This will be done "as soon as reasonably practicable".
At 1320 GMT, the shares were down 25% at 58.22p.
Although Home REIT did not mention the name of the Delaware firm, the company was no doubt referring to a note put out earlier by Viceroy Research, in which it said that its investigation into the group's investments and tenants "suggests significant downside".
"Poor operating results are already reflected in Home REIT's financials, however management incentives are not aligned with 'fixing' these problems, but only rolling up more bad assets," it said.
Viceroy said financial data of Home REIT's tenants show that many cannot afford rent, have not been paying rent, are in administration, are run by bad actors, or simply do not provide social housing services.
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