In a stock exchange notice today (13 February), the Home REIT board said it had been notified by the regulator of its commencement of an investigation into the trust, covering the period from 22 September 2020 to 3 January 2023.
“Naturally, the company will cooperate fully with the FCA in its work,” it said.
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Since its October 2020 IPO, the former FTSE 250 trust had raised over £850m in equity, which it deployed in a portfolio of more than 2,400 properties and 11,700 beds, including housing for women fleeing domestic violence, people leaving prison, individuals suffering from mental health or drug and alcohol issues, and foster care leavers.
However, a scathing report published in November 2022 by short-seller Viceroy Research raised questions over the valuation of Home REIT’s properties and the ability of its tenants to pay rent, which the trust contested as “baseless and misleading allegations”.
Under increased scrutiny following the report, the trust failed to publish its annual accounts, culminating in the suspension of its shares on 3 January 2023. On 23 May 2023, the board appointed AEW as Home REIT’s new fund manager in a bid to improve the fortunes of the trust.
The FCA declined to comment.
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