Home REIT (LSE:HOME) ROA %: -16.78% (As of Aug. 2025)


What is Home REIT ROA %?

Home REIT LSE:HOME -0.51% ROA % is -16.78% as of Aug. 2025. Among 938 REITs companies, Home REIT ranks worse than 98.72% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Home REIT's annualized Net Income for the quarter that ended in Aug. 2025 was £-29.56 Mil. Home REIT's average Total Assets over the quarter that ended in Aug. 2025 was £176.21 Mil. Therefore, Home REIT's annualized ROA % for the quarter that ended in Aug. 2025 was -16.78%.

The historical rank and industry rank for Home REIT's ROA % or its related term are showing as below:

LSE:HOME' s ROA % Range Over the Past 10 Years
Min: -97.21   Med: -13.34   Max: 4.35
Current: -14.27

During the past 5 years, Home REIT's highest ROA % was 4.35%. The lowest was -97.21%. And the median was -13.34%.

LSE:HOME's ROA % is ranked worse than
98.72% of 938 companies
in the REITs industry
Industry Median: 3.22 vs LSE:HOME: -14.27

Home REIT  (LSE:HOME) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Aug. 2025 )
=Net Income/Total Assets
=-29.56/176.2095
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-29.56 / -9.38)*(-9.38 / 176.2095)
=Net Margin %*Asset Turnover
=315.14 %*-0.0532
=-16.78 %

Note: The Net Income data used here is two times the semi-annual (Aug. 2025) net income data. The Revenue data used here is two times the semi-annual (Aug. 2025) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Home REIT ROA % Related Terms


Home REIT ROA % Historical Data

* Premium members only.

The historical data trend for Home REIT's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Home REIT ROA % Chart

Home REIT Annual Data
Trend Aug21 Aug22 Aug23 Aug24 Aug25
ROA %
4.35 -97.21 -22.77 -6.97 -13.34

Home REIT Semi-Annual Data
Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.40 -4.06 -11.28 -13.32 -16.78

LSE:HOME vs AVB, EQR, ESS: ROA % Comparison

For the REIT - Residential subindustry, Home REIT's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Home REIT ROA % vs REITs Industry

For the REITs industry and Real Estate sector, Home REIT's ROA % distribution charts can be found below:

* The bar in red indicates where Home REIT's ROA % falls into.



Home REIT ROA % Calculation

Home REIT's annualized ROA % for the fiscal year that ended in Aug. 2025 is calculated as:

ROA %=Net Income (A: Aug. 2025 )/( (Total Assets (A: Aug. 2024 )+Total Assets (A: Aug. 2025 ))/ count )
=-30.614/( (291.094+167.964)/ 2 )
=-30.614/229.529
=-13.34 %

Home REIT's annualized ROA % for the quarter that ended in Aug. 2025 is calculated as:

ROA %=Net Income (Q: Aug. 2025 )/( (Total Assets (Q: Feb. 2025 )+Total Assets (Q: Aug. 2025 ))/ count )
=-29.56/( (184.455+167.964)/ 2 )
=-29.56/176.2095
=-16.78 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is two times the semi-annual (Aug. 2025) net income data. ROA % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of -16.78% mean?
Home REIT (LSE:HOME) has a ROA % of -16.78% as of Aug. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Home REIT and its competitors. According to the industry distribution chart, Home REIT ranks #926 out of 938 companies in the REITs industry, placing it in the top 98.7%.
Is Home REIT's ROA % too high?
Home REIT's current ROA % is -16.78%. Based on the distribution chart, Home REIT ranks #926 out of 938 companies in the REITs industry, which is in the bottom quartile relative to peers.
How does Home REIT's ROA % compare to AVB and EQR?
According to the REITs industry distribution chart, Home REIT ranks #926 out of 938 companies for ROA %. This places Home REIT in the lower half of its industry. The industry median ROA % is 3.22. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a REITs company?
The median ROA % among REITs companies is 3.22, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Home REIT and its competitors. For the REITs industry, the median ROA % is 3.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Home REIT's current ROA % is -16.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Home REIT stock overvalued right now?
Home REIT (LSE:HOME) has a current ROA % of -16.78%. The current ROA % is -16.78%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Home REIT (LSE:HOME), the current ROA % is -16.78% as of Aug. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Home REIT Business Description

Industry Real EstateREITs
Address 140 Aldersgate Street, 4th Floor, London, GBR, EC1A 4HY
Home REIT PLC operates as a real estate investment company. The company invests in a diversified portfolio of homeless accommodation assets, let or pre-let to registered charities, housing associations, community interest companies and other regulated organisations that receive housing benefit or comparable funding from local or central government, on very long-term and index-linked leases. The investment objective is to deliver inflation-protected income and capital growth over the medium term for shareholders.