(Reuters) - Home REIT (LON:HOMEH) said on Tuesday an internal probe into alleged wrongdoings showed a lack of transparency on the part of its investment adviser had hampered the company's assessment of financial strength of its tenant base.
The UK housing provider for the homeless has been under scrutiny over several months after a short-seller report by Viceroy Research questioned the ability of the company's tenants to pay rent, among other issues.
Home REIT said key findings from the report submitted by independent forensic accountants Alvarez & Marsal Disputes and Investigations LLP showed arrangements for the refurbishment of properties were not brought to the board's attention by investment adviser Alvarium Home REIT Advisors Ltd.
The report also said the settlement of rent arrears and arrangements with tenants were not brought to the board's attention by Alvarium and the ongoing monitoring of tenants was limited by the investment adviser.
Home REIT last week had appointed AEW UK Investment Management LLP as its property adviser, effectively replacing Alvarium.
Earlier this month, the London-listed firm said it was not "proactively" pursuing a sale after potential suitor Bluestar Group decided not to bid for the company.