Third Quarter Update

RNS Number : 2133V

PRS REIT PLC (The)

13 April 2021

 

13 April 2021

PRSR.L

The PRS REIT plc

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

Third 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 activity over the third quarter of its financial year ending 30 June 2021.

	At 31 Mar 2021	At 31 Dec 2020	At 31 Mar 2020
Number of completed homes	3,590	3,163	1,947
Estimated rental value ("ERV") per annum	£33.3m	£29.4m	£17.9m
Number of contracted homes	1,536	1,963	2,885
ERV per annum	£15.8m	£19.4m	£28.3m
Completed and contracted sites	65	65	60
ERV of completed and contracted sites	£48.8m	£48.8m	£46.2m
Rent collected in period relative to rent invoiced over the same period	99.2%	100%	100%

Construction activity continued to progress well in the third quarter of the financial year, with 427 new rental homes added to the portfolio. This took total housing delivery over the first three quarters to 1,508 rental homes, which includes 175 homes acquired from BlackRock Real Assets and Sigma Capital Group plc, and is significantly above the 909 homes added over the whole of the last financial year.

In total, the Company's portfolio at 31 March 2021 stood at 3,590 completed homes, providing an estimated rental value ("ERV") of £33.3m per annum (31 December 2020: 3,163 homes with an ERV of £29.4m).   The portfolio of completed homes now stands at approximately 70% of the Company's fully optimised target of an initial 5,200 homes, providing an ERV of approximately £50.0m per annum.

Rent collection in the quarter remained strong. While the rent roll has grown by 96% over the last nine months, total arrears has remained very low at £0.2m at 31 March 2021. This is less than 1% of annualised ERV on completed units.

Demand for rental homes has remained high. At 31 March 2021, 3,433 of the Company's 3,590 completed homes were occupied, and a further 74 homes were reserved for qualified applicants with rental deposits paid. There is a healthy waiting list for homes still under construction, with 44 homes pre-let.

Details regarding the payment of the Company's dividend for the third quarter will be published at the end of April 2021.

DEFINITIONS

Contracted

refers to sites under construction (under a design & build contract), which have been purchased by the PRS REIT or the PRS REIT's Investment Adviser (forward sold to the PRS REIT).

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]
N+1 Singer  James Maxwell, James Moat, Sebastian Burke	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 Turner	Tel: [phone]
KTZ Communications Katie Tzouliadis, Dan Mahoney	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 and to provide shareholders with an attractive level of income together with the potential for capital and income growth. The Company is investing £0.9bn in a portfolio of high quality homes for private rental across the regions, having raised a total of £500m (gross) through its Initial Public Offering, on 31 May 2017, and a subsequent placing in February 2018. Both fundraisings were supported by the UK Government's Homes England with direct investments. 

LEI:  21380037Q91HU97WZX58

About Sigma Capital Group plc
www.sigmacapital.co.uk

Sigma Capital Group plc ("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 unrivalled PRS 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 Company'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 AIM-quoted Sigma Capital Group plc 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 Investment Manager 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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