Rent problems plague harrowed Home Reit

One of the trust’s main tenants, Lotus Sanctuary, has not paid since August


Home Reit has addressed concerns surrounding recent rent collection issues with its tenant Lotus Sanctuary, a provider of housing for vulnerable women.

In a stock exchange announcement, Home Reit confirmed that Lotus, which represents 12.2% of the trust’s overall rent roll, has not paid rent for the three months to 30 November.

The trust said it had “witnessed a deterioration” in its rent collection position, with a significant number of tenants in arrears over the quarter.

The update follows an announcement on 12 January that two of its other tenants, Big Help Group and Nobel Tree Foundation, were withholding rent.

Home Reit said it had made “statutory demands” to some of its tenants this month, and would provide an update in mid-February once the legal process has concluded.

The trust, which aims to provide social housing to alleviate homelessness while seeking returns for shareholders, has come under scrutiny in recent months over concerns regarding its viability and adherence to its investment philosophy.

Its shares are currently suspended after the firm missed the deadline to publish its full-year results, which are subject to enhanced audit procedures as part of a wider bid to reassure shareholders following allegations from Viceroy Research that Home Reit invests in “bad assets”.

See also: Scrooge-like short selling attack on Home Reit raises questions


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