A violent conflict erupted between one of the most prominent short sellers in the country and a landlord providing housing for the homeless.
Shares of Home Reit, listed on the FTSE 250 exchange, fell nearly 20% after short seller Viceroy Research launched an attack on the company, claiming its financial stability.
Viceroy is run by British short seller Fraser Perring, who accused Wirecard of fraud years before the collapse of the German payment company.
Under attack: Landlord Reith partners with many charities to provide housing for the homeless.
Perring has also targeted Tesla this year, selling shares in January, saying the automaker is overvalued compared to Toyota and Volkswagen. Since then, Tesla shares have fallen 50%.
In a 27-page report titled “There’s No Place Like a REIT Home”. . . Thankfully, Perring questions the company’s business model and its ability to collect rent from its tenants.
It claims that many of the tenants Home Reit works with—most of which are charities—provide housing for the homeless, “can’t afford the rent, don’t pay rent, are in administration, run by bad people, or simply don’t provide social services. housing services.
The report concludes: “Home Reit tenants are raising questions about the financial viability of the Home Reit portfolio as well as the viability of the venture.
We firmly believe that these are not the people who should be trusted to take care of the vulnerable, and they should not be trusted to take care of your taxes.”
But Home Reith said the report was “inaccurate and misleading,” adding that he had not been approached before the report was released.
A spokesman said: “In due course, the company will publish a full and detailed response demonstrating factual inaccuracies and selective use of information.”
Credit: www.thisismoney.co.uk /