Q2 Update

PRS REIT PLC (The)

17 January 2024

 

 

17 January 2024

PRSR.L

The PRS REIT plc

("the PRS REIT" or "the Company")

Second Quarter Update

The PRS REIT, the closed-ended real estate investment trust that invests in high-quality, new build, family homes in the private rented sector ("PRS"), is pleased to provide an update on performance over the second quarter (1 October to 31 December 2023) of its current financial year ending 30 June 2024.

	At 31 Dec 2023	At 30 Sept 2023	At 31 Dec 2022
Number of completed homes	5,264	5,129	4,913
Estimated rental value ("ERV") per annum	£60.3m	£57.6m	£50.7m
Number of contracted homes	312	395	613
ERV per annum	£3.1m	£3.1m	£6.6m
Completed and contracted sites	72	71	71
ERV of completed and contracted sites	£63.4m	£60.7m	£57.3m
Rent collected	99%	98%	98%

Delivery programme

The Company's homes delivery programme is now at a very mature stage. During the second quarter, which included the Christmas period, a further 135 rental homes were completed, taking the number of completed homes in the portfolio at the half-year end on 31 December 2023 to 5,264 and overall delivery to approximately 95% complete.

The estimated rental value ("ERV") of the 5,264 completed homes is £60.3 million per annum, approximately 19% higher than at the same point in the prior year (31 December 2022: 4,913 homes, ERV of £50.7 million per annum). The ERV increase reflects both the increase in completed homes and strong rental growth.

As at 31 December 2023, a further 312 homes, with a combined ERV of £3.1 million, were contracted and under way, at varying stages of the construction process. Once these homes have been completed, the ERV of the portfolio is expected to increase to c.£63.4 million per annum (30 September 2023: £60.7 million per annum).

Asset performance

Rental demand for the Company's homes remains very high, reflected in very strong rental growth and occupancy rates.  Occupancy at 31 December 2023 stood at 97% with 5,087 of the 5,264 completed homes occupied. A further 47 homes were reserved for applicants who      had passed referencing and paid rental deposits, giving an occupancy rate of 98%. Like-for-like rental growth for the 12 months to 31 December 2023 was 11% (2022: 6%).

Rent collection (defined as rent collected in the period relative to rent invoiced in the same period) for the quarter ended 31 December 2023 was extremely robust at 99%. Arrears were low at £0.6 million at 31 December 2023 (31 December 2022: £0.7 million).  This represents c.1% of annualised ERV on completed units.

Affordability, which is average rent as a proportion of gross household income, continues to be well within Homes England's upper guidance limit of 35%. Reflecting the tenant base, where average household income has increased, the Company's homes have an affordability ratio of c.22% of gross household income at 31 December 2023 (30 September 2023: 22%).

Dividend

The Company expects to announce the interim quarterly dividend, relating to the second quarter of the current financial year, towards the end of January 2024.

For further information, please contact:

The PRS REIT plc Steve Smith, Non-executive Chairman	Tel: [phone] (c/o KTZ Communications)
Sigma PRS Management Ltd Graham Barnet, Mike McGill	Tel: [phone]
Singer Capital Markets James Maxwell, Asha Chotai (Investment Banking) Alan Geeves, James Waterlow, Sam Greatrex (Sales)	Tel: [phone]
Jefferies International Limited Gaudi Le Roux, Tom Yeadon, Harry Randall, Ollie Nott	Tel: [phone]
G10 Capital Limited (part of IQ-EQ) Maria Baldwin	Tel: [phone]
KTZ Communications Katie Tzouliadis, Robert Morton	Tel: [phone]

NOTES TO EDITORS

About The PRS REIT plc www.theprsreit.com

The PRS REIT plc is a closed-ended real estate investment trust established to invest in the Private Rented Sector ("PRS") and to provide shareholders with an attractive level of income together with the potential for capital and income growth. The Company is investing over £1bn in a portfolio of high-quality homes for private rental across the regions, having raised a total of £0.56bn (gross) through its Initial Public Offering, on 31 May 2017 and subsequent fundraisings in February 2018 and September 2021. The UK Government's Homes England has supported the Company with direct investments. On 2 March 2021, the Company transferred its entire issued share capital to the premium listing segment of the Official List of the FCA and to the London Stock Exchange's premium segment of the Main Market. With over 5,200 new rental homes, the Company believes its portfolio is the largest build-to-rent single-family rental portfolio in the UK.

LEI: 21380037Q91HU97WZX58

About Sigma Capital Group Limited (formerly Sigma Capital Group plc) www.sigmacapital.co.uk

Sigma Capital Group Limited ("Sigma") is a PRS, residential development, and urban regeneration specialist, with offices in Edinburgh, Manchester and London. Sigma's principal focus is on the delivery of large-scale housing schemes for the private rented sector. The Company has a well-established track record in assisting with property-related regeneration projects in the public sector, acting as a bridge between the public and private sectors.

Sigma has created an excellent property procurement and management platform, which sources sites and brings together construction resource to develop them, enabling Sigma to deliver an integrated solution to partners. As well as sourcing sites and managing all stages of the planning and development process, Sigma manages the rental of completed homes through its award-winning rental brand 'Simple Life'. The Company's subsidiary, Sigma PRS Management Ltd, is Investment Adviser to The PRS REIT plc.

About Sigma PRS Management Ltd

Sigma PRS Management Ltd is a wholly-owned subsidiary of Sigma Capital Group Limited and is Investment Adviser to The PRS REIT plc. It sources investments and operationally manages the assets of The PRS REIT plc and advises the Alternative Investment Fund Manager ("AIFM") and The PRS REIT plc on a day-to-day basis in accordance with The PRS REIT plc's Investment Policy. The AIFM is G10 Capital Limited. Sigma PRS Management Ltd is an appointed representative of G10 Capital Limited, which is authorised and regulated by the Financial Conduct Authority (FRN:648953).

 

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