Q4 Trading Update and Dividend Declaration

RNS Number : 5764T

PRS REIT PLC (The)

25 July 2022

 

25 July 2022

PRSR.L

The PRS REIT plc

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

Fourth Quarter Update and

Dividend Declaration

Strong Asset Performance

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 activity for the fourth quarter of its financial year ended 30 June 2022.

Fourth quarter performance

	At 30 Jun 2022	At 31 Mar 2022	At 30 Jun 2021
Number of completed homes	4,786	4,616	3,984
Estimated rental value ("ERV") per annum	£47.8m	£45.5m	£37.5m
Number of contracted homes	693	822	1,096
ERV per annum	£4.4m	£6.2m	£10.8m
Completed and contracted sites	68	67	64
ERV of completed and contracted sites	£52.2m	£51.7m	£48.3m
Rent collected in period relative to rent invoiced for the same period	100%	99%	98%
Like-for-like rental growth on stabilised sites in the preceding 12 months	5.1%	4.8%	n/a

Delivery Progress

During the fourth quarter of the financial year, 170 new rental homes were added to the Company's portfolio, taking the total number of homes added during the financial year to 802. T his has raised the number of completed homes in the portfolio to 4,786 as at 30 June, an increase of 20% year-on-year.

The estimated rental value ("ERV") of the 4,786 completed homes at 30 June 2022 was £47.8m per annum, a 27% increase on the same point last year (30 June 2021: 3,984 homes with an ERV of £37.5m per annum). A further 693 homes, with an ERV of £4.4m per annum, were contracted at 30 June 2022, and are at varying stages of the construction process.

As planned, during the period, the Company completed the acquisition of a contracted site and acquired an additional development site, utilising debt funding. The contracted site is located at Baberton Grange, Nuneaton, and comprises 50 newly-completed and let homes, with an ERV of £0.5m per annum. It was bought from Sigma Capital Group Limited after an independent valuation. The new development site is at Drakelow Park, Burton-Upon-Trent, and will deliver 41 homes when fully completed, with an ERV of £0.4m, at a gross development cost of £7.3m. The Company plans to acquire a further three sites in the first half of the new financial year.

Asset Performance

Asset performance during the quarter was very strong.  Rent collection* for the period was 100% and total occupancy at the end of the quarter was at 98%, with 4,674 of the 4,786 completed homes occupied.  A further 53 homes were reserved at the quarter end for applicants who had passed referencing and paid rental deposits. Total arrears at 30 June 2022 were low at £0.6m (30 June 2021: £0.4m) . Like-for-like rental growth over the year has been strong at 5.1% on stabilised sites. 

These very encouraging performance figures demonstrate the continuing strong market demand for rental homes and the attraction of our high-quality homes, which are well-located, and supported by very high customer service.

*Rent collection is defined as rent invoiced in the period against rent collected in the same period.

Dividend declaration

An interim dividend of 1.0 pence per ordinary share in respect of the third quarter of the financial year was paid on 13 May 2022.

The Board is pleased to declare an interim quarterly dividend of 1.0 pence per ordinary share in respect of the fourth quarter of the financial year ended 30 June 2022. The dividend, which will be a non-Property Income Distribution ('non-PID'), will be payable on Friday 26 August 2022 to shareholders on the register on Friday 5 August 2022. The ex-dividend date will be Thursday 4 August 2022.

For further information, please contact:

The PRS REIT plc Steve Smith, Non-executive Chairman	Tel: [phone] (c/o KTZ Communications)
Sigma PRS Management Limited Graham Barnet, Mike McGill	Tel: [phone]
Singer Capital Markets James Maxwell, Asha Chotai	Tel: [phone]
Panmure Gordon (UK) Limited Chloe Ponsonby (Corporate Broking), Alex Collins (Corporate Finance)	Tel: [phone]
G10 Capital Limited (part of the IQEQ Group as AIFM) Paul Cowland	Tel: [phone]
KTZ Communications Katie Tzouliadis, Dan Mahoney

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. At almost 4,800 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, and is part of PineBridge Investments, a private, global asset manager with $146bn in assets under management at March 2022.

Sigma's principal focus is on the delivery of large-scale housing schemes for the private rented sector. The business 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 unrivalled property 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 also manages the rental of completed homes through its award-winning rental brand 'Simple Life'. The business's subsidiary, Sigma PRS Management Limited, is Investment Adviser to The PRS REIT plc.

About Sigma PRS Management Limited

Sigma PRS Management Limited 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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