Shares in Home REIT, which invests in accommodation for homeless people, have been suspended from trading on the London Stock Exchange as the company undergoes an “enhanced” audit following high-profile criticism from a short-seller.
The company previously said its 2022 results would be delayed due to auditor BDO carrying out “an enhanced set of audit procedures”. Under Financial Conduct Authority rules, a company must publish its annual financial report within four months of the end of its financial year, meaning Home REIT has missed the 31 December deadline.
Its shares have now been suspended. Home REIT said: “The company intends to request a restoration of the listing of its ordinary shares upon publication of the 2022 results, which the company expects to be published by as soon as practicable.” It said last month that it expected the results now to be published by the end of January.
Viceroy Research has levelled a number of accusations at Home REIT over its tenant base and the valuation of its real estate portfolio, all of which Home REIT has refuted. The company’s shares have lost around 70% of their value over the past year and it exited the FTSE 250 last month.
The company said last month that it would take new steps to “maintain and enhance shareholder confidence”, including bringing its senior investment adviser back from maternity leave early and hiring a property management firm to handle the portfolio.
It said today: “While the company awaits the completion of BDO’s enhanced audit procedures, the company will continue with the previously announced steps to maintain and enhance shareholder confidence, while maintaining its ordinary course operations to provide high-quality housing for some of the most vulnerable people in society.”
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