Activist demands probe at Home REIT claiming it misled investors
Activists are demanding an investigation into Home REIT, claiming the landlord misled investors for the homeless
An activist shareholder has written to the financial watchdog to demand an investigation into whether Home REIT misled investors.
In a letter to the Financial Conduct Authority, The Boatman Capital — which has pushed for a review of Home REIT — said the troubled homeless landlord’s backers have been “severely burned” by the company.
According to Boatman, the reason for this was ‘failure to provide complete and accurate information to the market’.
Probe Call: Landlord for the Homeless Home REIT has been accused of misleading investors
Home REIT claimed it had invested in “high-quality” accommodation for vulnerable people, including the homeless and victims of domestic violence, when it launched in 2020.
But it has been mired in crisis since last November, when financial research group Viceroy Research released a report calling into question its business model.
It created a domino effect that caused Home REIT to postpone its full-year results, which have not yet been published.
The company’s share price was suspended early this year as it remains embroiled in a series of disputes with tenants over the condition of its properties.