The Lemon Fool

HOME appears to have entered voluntary liquidation.
https://www.voxmarkets.co.uk/rns/announ ... af76e20d6/

airbus330 wrote:HOME appears to have entered voluntary liquidation.
https://www.voxmarkets.co.uk/rns/announ ... af76e20d6/

I think you have misread it. It is saying that one of HOME's tenants has entered liquidation.

murraypaul wrote:

airbus330 wrote:HOME appears to have entered voluntary liquidation.
https://www.voxmarkets.co.uk/rns/announ ... af76e20d6/

I think you have misread it. It is saying that one of HOME's tenants has entered liquidation.

Indeed, faulty speed reading! Supportive Homes, a tenant has entered liquidation.

airbus330 wrote:
I think you have misread it. It is saying that one of HOME's tenants has entered liquidation.

Home REIT remains suspended.

HOME REIT is currently selling off some of its properties by auction.

"The proceeds from the Sale Properties represented an average of 32% per cent of their purchase price." (my bold) Although this is a bit of a firesale, 32% of purchase cost suggests that the company massively overpaid for their properties and/or completely trashed them once bought.

https://www.londonstockexchange.com/new ... s/16145285

RockRabbit wrote:HOME REIT is currently selling off some of its properties by auction.

"The proceeds from the Sale Properties represented an average of 32% per cent of their purchase price." (my bold) Although this is a bit of a firesale, 32% of purchase cost suggests that the company massively overpaid for their properties and/or completely trashed them once bought.

https://www.londonstockexchange.com/new ... s/16145285

I think an interesting question would be: who were the directors of the companies that they bought these properties from and was there any connection to the directors of HOME REIT?

And for the companies that have now bought these properties, who are the directors and what is their connection to the original property sellers?

Regards, Puffster

puffster wrote:

RockRabbit wrote:HOME REIT is currently selling off some of its properties by auction.

"The proceeds from the Sale Properties represented an average of 32% per cent of their purchase price." (my bold) Although this is a bit of a firesale, 32% of purchase cost suggests that the company massively overpaid for their properties and/or completely trashed them once bought.

https://www.londonstockexchange.com/new ... s/16145285

I think an interesting question would be: who were the directors of the companies that they bought these properties from and was there any connection to the directors of HOME REIT?

And for the companies that have now bought these properties, who are the directors and what is their connection to the original property sellers?

Regards, Puffster

There's a lot of evidence out there regarding HOME and related parties flipping properties at higher values with HOME paying inflated prices. It looks to me like close to or actual fraud if you believe the allegations out there.

More grim reading
https://www.londonstockexchange.com/new ... e/16147427

airbus330 wrote:More grim reading
https://www.londonstockexchange.com/new ... e/16147427

I note that rent collection is now down to 3%!

RockRabbit wrote:

airbus330 wrote:More grim reading
https://www.londonstockexchange.com/new ... e/16147427

I note that rent collection is now down to 3%!

Yes, thankfully this is a bullet that I dodged, mainly because it failed the smell test. Didn't stop me buying CSH mind

‎
A stark assessment in the Times this morning, detailing many of the issues that affected HOME REIT -

Home Reit properties lose more than half their value -

Home Reit, which spent hundreds of millions of pounds buying houses and flats to accommodate the homeless, has confirmed that its properties are worth only a fraction of what it originally paid for them.

Hundreds of inspections of properties carried out over recent months also have shown that many have never been used to house homeless people.

Lynne Fennah, who has been Home Reit’s chairwoman since its inception three years ago, said she was “extremely disappointed” with the findings of JLL, the property consultancy that has been inspecting and valuing the group’s property portfolio since the summer.

JLL, having inspected almost all of Home Reit’s 2,473 properties, estimated that they had a combined value of £412.9 million. That is almost 60 per cent below the £977 million, excluding purchase costs, that Home Reit had paid for them.

Home Reit acknowledged the “very material reduction in the valuation”, which it said was predominantly down to a “reassessment of the quality of the assets … and of the covenant strength of the tenants”, a number of which have gone into liquidation this year, including some of the group’s largest occupiers.

Many properties have been found to be in need of “extensive renovation” before they can be let out, while other properties “need to be reconfigured” before being deemed lettable. Home Reit has said previously that when it bought blocks of flats and houses, it was on the agreement that the vendor would pay for any refurbishment.

JLL found that almost 90 per cent of the buildings were either empty or were occupied by such an unreliable tenant that they might as well be, and as such they were valued on a “vacant possession basis”. Last month Home Reit collected 14 per cent of rent due.

https://archive.is/aLB9H

Shareholders will clearly be concerned around broad governance related to these critical issues...

Cheers,

Itsallaguess

Itsallaguess wrote:‎
A stark assessment in the Times this morning, detailing many of the issues that affected HOME REIT -

Home Reit properties lose more than half their value -

Home Reit, which spent hundreds of millions of pounds buying houses and flats to accommodate the homeless, has confirmed that its properties are worth only a fraction of what it originally paid for them.

Hundreds of inspections of properties carried out over recent months also have shown that many have never been used to house homeless people.

Lynne Fennah, who has been Home Reit’s chairwoman since its inception three years ago, said she was “extremely disappointed” with the findings of JLL, the property consultancy that has been inspecting and valuing the group’s property portfolio since the summer.

JLL, having inspected almost all of Home Reit’s 2,473 properties, estimated that they had a combined value of £412.9 million. That is almost 60 per cent below the £977 million, excluding purchase costs, that Home Reit had paid for them.

Home Reit acknowledged the “very material reduction in the valuation”, which it said was predominantly down to a “reassessment of the quality of the assets … and of the covenant strength of the tenants”, a number of which have gone into liquidation this year, including some of the group’s largest occupiers.

Many properties have been found to be in need of “extensive renovation” before they can be let out, while other properties “need to be reconfigured” before being deemed lettable. Home Reit has said previously that when it bought blocks of flats and houses, it was on the agreement that the vendor would pay for any refurbishment.

JLL found that almost 90 per cent of the buildings were either empty or were occupied by such an unreliable tenant that they might as well be, and as such they were valued on a “vacant possession basis”. Last month Home Reit collected 14 per cent of rent due.

https://archive.is/aLB9H

Shareholders will clearly be concerned around broad governance related to these critical issues...

Cheers,

Itsallaguess

Has there ever been a worse run publicly listed company? Somebody must be held to account. Sadly, I think in the UK it's likely that the people who made a great deal of money out of HOME will get away with it.

“The stock market is a device for transferring money from the impatient to the patient.” Warren Buffett

I think that many investors became impatient with their poor dividend returns over the last 7-8 years and saw the likes of HOME, SONG DIG9 CSH etc. as a quick and tempting fix.

airbus330 wrote:“The stock market is a device for transferring money from the impatient to the patient.” Warren Buffett

I think that many investors became impatient with their poor dividend returns over the last 7-8 years and saw the likes of HOME, SONG DIG9 CSH etc. as a quick and tempting fix.

I think that’s a bit harsh on many investors in SONG. I first bought in Sept 2020, at 117p! They were yielding under 5% and I saw them as handy diversification, being weakly correlated to the FTSE. It’s very disappointing how this one has played out over the last three years, but it certainly wasn’t due to impatience with poor dividend returns elsewhere

Wasron

Wasron wrote:

airbus330 wrote:“The stock market is a device for transferring money from the impatient to the patient.” Warren Buffett

I think that many investors became impatient with their poor dividend returns over the last 7-8 years and saw the likes of HOME, SONG DIG9 CSH etc. as a quick and tempting fix.

I think that’s a bit harsh on many investors in SONG. I first bought in Sept 2020, at 117p! They were yielding under 5% and I saw them as handy diversification, being weakly correlated to the FTSE. It’s very disappointing how this one has played out over the last three years, but it certainly wasn’t due to impatience with poor dividend returns elsewhere

Wasron

If it sounds harsh, I am self flagellating, since I bought SONG myself, using pretty much the same arguments that you have listed. I also managed to ignore the warnings posted by various other sources. When I analyse my own motivation for buying SONG, in my case, there was a reluctance to stick with my traditional income generators which generated a lower income. I should have waited for things to settle rather than chase after shiny new ideas which promised more income. Thankfully I had the sense to only invest about 5% of my portfolio in these dogs and the sense to cut my losses in most cases. Going forward, I'll stick with what i know and look very carefully at the people who run the companies that I invest in. All the clues were there when you look at the characters of the BoD in these companies.

airbus330 wrote:All the clues were there when you look at the characters of the BoD in these companies.]

Yes, a lot to be said for that observation.

Double thumbs up from me (if it was allowed).

Link below is to an investigation into the 'Big Help Project' which was a major tenant of HOME REIT. Yet again, another example of regulators being asleep at the wheel.

The collapsing world of Liverpool’s charity kingpin
https://www.livpost.co.uk/p/special-inv ... collapsing