Home REIT PLC on Tuesday said an internal investigation into its alleged wrongdoings showed a lack of transparency on behalf of its investment adviser, Alvarium Home REIT Advisors Ltd.

In January, the London-based property investor instructed Alvarez & Marsal Disputes & Investigations LLP to conduct an investigation regarding allegations of wrongdoing, including claims raised by short-seller Viceroy Research.

Last year in November, Delaware-based Viceroy Research published a report including a number of claims against Home REIT. It asserted that financial data proved many of Home REIT’s tenants ‘cannot afford rent, have not been paying rent, are in administration, are run by bad actors, or simply do not provide social housing services’.

Viceroy later added that Home REIT’s response to its report all but confirmed ‘the round-tripping of revenues to tenants via vendor agreements, low tenant quality and related party structures between major tenants’.

Home REIT has now received a report from Alvarez & Marsal detailing its findings, including into the allegations by Viceroy.

Firstly, Alvarez & Marsal found that arrangements for the refurbishment of properties were not brought to the board’s attention by its investment adviser. It said that this meant the board was unable to consider whether a release of developer’s liabilities for refurbishment purposes was appropriate.

The accountants also found that the settlement of rent arrears and arrangements with tenants were not brought to the board’s attention.

The investigation showed that while the investment adviser was giving the appearance that rent arrears were being settled in the normal manner, they were actually from unsustainable cashflow sources and were not being paid or collected in the form of rent.

Home REIT said on Tuesday that this lack of transparency ‘hampered’ its ability to assess the medium-term financial strength of its tenant base, and the ability of its tenants to pay sustainably pay rent.

Last week, the firm appointed AEW UK Investment Management LLP as its property adviser, effectively replacing Alvarium.

Home REIT’s shares were suspended from trading in London after it failed to published its annual report for the financial year that ended August 31. The suspension was recently extended a further 20 days, effective from last Thursday, ‘without indication of resumption’.

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