Home REIT
Home REIT is a property company which invests in the provision of sheltered housing for homeless people throughout the United Kingdom. The company is listed on the London Stock Exchange.
History
Home REIT was launched on the London Stock Exchange in October 2020 raising £240 million in what turned out to be the largest initial public offering of any investment trust in the year. It used the proceeds to invest in some 500 properties for homeless people around the United Kingdom.The company went on to raise a further £350 million in September 2021, and used the proceeds to buy another 366 properties. After that, it raised another £150 million in May 2022, and used the proceeds to acquire another 216 properties, so diversifying its portfolio of sheltered accommodation for homeless people such that, by then, the properties were let to 28 charities or housing associations in 126 local authority areas.
On 7 December 2022, a group of shareholders claimed the company had misled the market by investing in properties occupied by tenants who are not vulnerable and therefore would not qualify for Housing Benefit payments. The company denied the allegations. It admitted on 15 December 2022 that it had no record of how much of its income comes from Housing Benefit payments, on which it is significantly dependent.
In January 2023, the trading in Home Reit shares was suspended, after the value of the company had reduced by over 70%.