PRS REIT

Fourth Quarter Update
RNS Number : 1366F
PRS REIT PLC (The)
14 July 2021
 

14 July 2021

PRSR.L

The PRS REIT plc

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

 

Fourth 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 fourth quarter of its financial year ended 30 June 2021.

  


At

30 Jun 2021

At

31 Mar 2021

At

30 Jun 2020

Number of completed homes

3,984

3,590

2,082

Estimated rental value ("ERV") per annum

£37.5m

£33.3m

£19.1m

Number of contracted homes

1,096

1,536

2,750

ERV per annum

£10.8m

£15.8m

£27.1m

Completed and contracted sites

64

65

65

ERV of completed and contracted sites*

£48.3m

£48.8m

£46.2m

Rent collected in period

98.4-%

99.2%

98.0%

 *ERV as at today's rental levels

 

Construction activity continues to progress well, with 394 new rental homes added to the portfolio in the fourth quarter of the financial year, taking total housing delivery for the year ended 30 June 2021 to 1,902 new homes. This compares with 909 homes during the previous financial year. A further 1,096 homes were contracted at the financial year end, and are at varying stages of the construction process.

 

The new completions increased the size of the portfolio at 30 June 2021 to 3,984 completed homes, with an estimated rental value ("ERV") of £37.5m per annum (30 June 2020: 2,082 homes with an ERV of £19.1m). The Company is now over three quarters of the way towards its initial target of 5,200 homes, with an ERV of approximately £50.0m per annum1. The balance of homes is expected to be delivered from existing contracted sites and further development opportunities in the Investment Adviser's pipeline.   

 

Of the 3,984 completed homes, 3,888 (97.6%) were occupied at 30 June 2021, and a further 30 homes were reserved for qualified applicants with rental deposits paid.

 

Demand for homes remains strong, and rent collected in the period (relative to rent invoiced in the period) was 98.4%. As the size of the portfolio grows, total arrears continue to remain very low at £0.4m at 30 June 2021.

 

Dividends

 

An interim dividend of 1.0 pence per ordinary share was paid on 18 June 2021, of which 0.5 pence per ordinary share was a Property Income Distribution ("PID").

 

Details regarding the payment of the Company's dividend for the fourth quarter will be published at the end of July 2021. The Board continues to target1 a minimum total dividend of 4p per share for the financial year ended 30 June 2021.  

 

1. This is a target only and there can be no assurance that the target can or will be met and should not be taken as an indication of the Company's expected or actual future results. Accordingly, potential investors should not place any reliance on this target in deciding whether or not to invest in the Company or assume that the Company will make any distributions at all and should decide for themselves whether or not the target dividend yield is reasonable or achievable. 

 

 

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: 020 3178 6378 (c/o KTZ Communications)

Sigma PRS Management Limited
Graham Barnet, Mike McGill

 

Tel: 0333 999 9926

Singer Capital Markets
James Maxwell, Hannah Woodley, Sebastian Burke

 

Tel: 020 7496 3000

 

Panmure Gordon (UK) Limited

Chloe Ponsonby (Corporate Broking), Alex Collins (Corporate Finance)

 

Tel: 020 7886 2500

G10 Capital Limited (part of the IQEQ Group as AIFM)

Paul Turner 

 

Tel: 020 3745 2826

KTZ Communications

Katie Tzouliadis, Dan Mahoney

Tel: 020 3178 6378

 

 

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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