(Gareth Fuller/PA)
(Picture: PA Archive)Further signs of the precarious state of Home REIT emerged this morning after the firm warned of ‘serious issues’ facing its future and said it was exploring putting itself up for sale.
The property company, which provides sheltered housing for homeless people said it had identified ‘serious challenges in rent collection’ for December 2022 and January 2023, with only 23% of rent collected in the the quarter ending November 2022, after commissioning a report on operational performance.
“In addition, the rent forecast to be collected for the coming months is highly uncertain [because of] a combination of issues surrounding the tenants' ability, or willingness, to pay,” the company added.
More than two-thirds of Home REIT’s portfolio is in need of refurbishing, the firm warned, as it suspended the payment of quarterly dividend payments for the foreseeable future.
Lynne Fennah, Chair of the board, said: “We recognise the serious issues facing the Company and are examining all options to preserve shareholder value, and the interests of all stakeholders.”
Home REIT said it was exploring options for the firm’s future, which included the possibility of putting itself up for sale. The firm said it had received an unsolicited takeover offer from London-based investment firm BlueStar, but warned there was no certainty a sale would be agreed.
The business previously rebuffed a short selling report which suggested it was in financial difficulty, telling sharholders “the allegations made in the report and subsequent publications are without foundation and have caused unnecessary and significant disruption and losses to the company and its shareholders.”
But Home REIT has since admitted it “has seen a general deterioration in its rent collection position” with two of its clients failing to pay rent for the most recent quarter.
