Acquisitions, Rent Collection and Dividend Cover
6 August 2020
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the "Group")
UPDATE ON ACQUISITIONS, RENT COLLECTION AND DIVIDEND COVER
The Board of Triple Point Social Housing REIT plc (ticker: SOHO) is pleased to announce the following updates:
· The Group completed the acquisition of a further 16 properties (comprising 70 individual units) for an aggregate consideration of approximately £9.6 million (excluding acquisition costs)
· As at 5 August 2020, 100% of rent due for June 2020 was received and 97% of the rent due for July 2020 had also been received, with the balance expected to be received within the next two weeks
· The Company now has a look-through dividend cover of over 100%, as measured on an EPRA earnings run-rate basis1
Acquisitions Update
The Group has completed the acquisition of 16 properties, comprising 70 individual units in total, for an aggregate consideration of approximately £9.6 million (excluding acquisition costs). The properties are located in the West Midlands (64 units), the East of England (4 units) and Yorkshire (2 units).
The Group has entered into new FRI leases in respect of each of the properties acquired for periods of between 20 and 40 years. The leases are with specialist care providers or housing associations regulated by the Regulator of Social Housing, including Blue Square Residential, Inclusion Housing, Keys Group and Sandwell Community Caring Trust.
The rents received under these leases are subject to annual, upward-only rent reviews, increasing in line with the Consumer Price Index.
The properties comprise specialist, high quality homes for individuals with mental health and other support and care needs.
The properties generate net initial yields in line with the Company's existing portfolio.
Rental Collection and Dividend Cover
The Group continues to receive rents on a timely basis and in line with both expectations and the experience in prior years. As at 5 August 2020, 100% of rent due for June 2020 was received and 97% of rent due for July 2020 had also been received, with the balance expected to be received within the next two weeks.
Following the further acquistions announced today the Company's look-through dividend cover has increased to over 100% as measured on an EPRA earnings run-rate basis1.
Note:
1 Including revenue from operational and forward funded properties
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
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Triple Point Investment Management LLP (Investment Manager) |
Tel: 020 7201 8989 |
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Ben Beaton |
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Max Shenkman |
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Isobel Gunn-Brown |
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Akur Capital (Joint Financial Adviser) |
Tel: 020 7493 3631 |
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Tom Frost |
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Anthony Richardson |
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Siobhan Sergeant |
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Stifel (Joint Financial Adviser and Corporate Broker) |
Tel: 020 7710 7600 |
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Mark Young |
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Mark Bloomfield |
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Rajpal Padam |
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The Company's LEI is 213800BERVBS2HFTBC58.
Further information on the Company can be found on its website at www.triplepointreit.com .
NOTES:
The Company invests in primarily newly developed social housing assets in the UK, with a particular focus on supported housing. The assets within the portfolio are subject to inflation-adjusted, long-term (typically from 20 years to 30 years), Fully Repairing and Insuring ("FRI") leases with Approved Providers (being Housing Associations, Local Authorities or other regulated organisations in receipt of direct payment from local government). The portfolio comprises investments into properties which are already subject to an FRI lease with an Approved Provider, as well as forward funding of pre-let developments but does not include any direct development or speculative development.
There is increasing political and financial pressure on Housing Associations to increase their housing delivery and this is creating opportunities for private sector investors to participate in the market. The Group's ability to provide forward financing for new developments not only enables the Company to secure fit for purpose, modern assets for its portfolio but also addresses the chronic undersupply of suitable supported housing properties in the UK at sustainable rents as well as delivering returns to investors.
The Company was admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange on 8 August 2017 and was admitted to the premium segment of the Official List of the Financial Conduct Authority and migrated to trading on the premium segment of the Main Market on 27 March 2018. The Company operates as a UK Real Estate Investment Trust ("REIT") and is a constituent of the FTSE EPRA/NAREIT index.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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