12th Jan 2023 14:27
(Alliance News) - Home REIT PLC on Thursday said that it would be reviewing all options to recover rent from two of its tenants, following their failure to pay for the quarter ended November.
The London-based real estate investment trust told investors that both Big Help Group and Noble Tree Foundation have disputed their rental obligations, and failed to pay for the three months to November 30.
Home REIT's shares were temporarily suspended from trading in London last week, after the company failed to publish its annual financial report for the year ended August 31.
The four-month publication delay was blamed on issues with its independent auditor, BDO LLP.
Home REIT subsequently announced last Wednesday that Alvarium RE Ltd has agreed to sell its investment advisor, Alvarium Home REIT Advisors Ltd, to a newly formed entity.
The new entity will be owned by the management of AHRA and funded by a promissory note.
On Thursday, Home REIT attributed the "general deterioration" in its rent collection position to the short-selling report published by Viceroy Research in November.
The report, which was described by the company as "inaccurate and misleading", accused executives of short-selling.
Viceroy later claimed that Home REIT's response "all but [confirmed] round-tripping of revenues to tenants via vendor agreements, low tenant quality and related party structures between major tenants".
The law firm Harcus Parker was subsequently appointed in December to lead a case establishing whether Home REIT had indeed misled shareholders, including in relation to its social impact.
The firm said that public evidence proved Home REIT properties "have been found by local authorities to be unsuitable for housing vulnerable individuals".
Home REIT on Thursday said that it was reviewing all options to obtain payment of overdue rent from its tenants.
In this regard, the company said that is in the late stages of appointing a specialist supported housing property manager.
The manager will assist the existing management team with tenant liaison and monitoring, rent collection and underlying asset performance.
A further announcement on this will be made in due course.
Home REIT shares remain suspended.
By Holly Beveridge; Alliance News reporter
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