NAV,Shareholder Consultation, Dividend Declaration
13 November 2023
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the "Group")
NET ASSET VALUE, UPDATE ON SHAREHOLDER CONSULTATION AND DIVIDEND DECLARATION
The Board of Triple Point Social Housing REIT plc (the "Board") (ticker: SOHO) is pleased to announce the Company's unaudited Net Asset Value ("NAV") as at 30 September 2023, an update following consultation with the Company's shareholders, and the declaration of the Group's third quarterly interim dividend.
NAV as at 30 September 2023
The unaudited NAV reflects an independent RICS "Red Book" valuation of the Company's portfolio (including all property acquisitions completed) as at 30 September 2023, prepared by Jones Lang LaSalle Limited, on an individual asset basis (as required by IFRS).
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NAV |
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As at 30 Sept 2023 (unaudited) |
As at 30 Jun 2023 (unaudited) |
% change |
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NAV per Ordinary Share (pence)* |
108.88p |
111.31p |
(2.2)% |
* As at 30 September 2023, the EPRA NTA and IFRS NAV for the Company were the same.
Income less expenses had a net positive 0.05p per share impact on the NAV. The reduction in NAV was a result of a £9.8 million (or 2.48p per share) decrease in the value of the Group's property portfolio. The blended portfolio Net Initial Yield moved out by 16 bps during the quarter to 5.84% as at 30 September 2023, reflecting wider market conditions and adjustments attributable to properties leased to My Space and Parasol Homes. In addition, the Board notes that at least 65% of the Group's 2024 annual rent increases will be linked to the September 2023 Consumer Price Index figure of 6.7%.
Update following Shareholder Consultation
The Board and Triple Point Investment Management LLP ("Triple Point" or the "Manager") have consulted with a number of the Company's shareholders, representing c.21% of the share register, in accordance with Provision 5.2.4 of the AIC Code of Corporate Governance. The Board and the Manager each acknowledge shareholder concerns regarding the performance of the Company's shares and remain committed, in consultation with the Group's strategic advisers, to addressing the persistent discount to EPRA Net Tangible Assets ("NTA").
Alongside these active considerations, the Board and the Manager continue to focus on the underlying performance of the Group.
· The majority of the Group's portfolio continues to perform in line with expectations with 25 out of 27 Approved Providers demonstrating no material arrears. As reported in the Group's interim report for the six months ended 30 June 2023, a creditor agreement is in place with Parasol and Parasol is paying all monthly rent due under the agreement. The Manager is working towards agreeing a creditor's agreement with My Space which is expected to be in place by the end of Q1 2024. Simultaneously the Manager is working with My Space to move certain properties to alternative Registered Providers. The Board and the Manager remain focused on the long-term performance of these two lessees.
· As expected, dividend cover improved in Q3 2023 and the dividend for the quarter was fully covered on an adjusted earnings basis. We anticipate this improved dividend cover to continue over the remainder of the financial year.
The Group has a total cash balance of £31.0 million of which £5.1 million is in restricted bank accounts and a further £14.4 million is held back for working capital purposes, leaving net available cash of £11.5 million. Therefore, were the Company to undertake a further return of capital with an equal corresponding paydown of the Group's debt, any such distribution to shareholders would be limited to c.£5.75 million.
Given current economic conditions and the limited amount of capital that the Company would currently be able to return to shareholders without increasing its gross leverage, the Board has decided that any further return of capital is dependent on significant additional liquidity being delivered through property sales.
Following the portfolio sale (announced by the Company on 1 September 2023) which was principally in line with book value, the Board and Manager will continue to consider further disposal opportunities. However, this is subject to market conditions being supportive of maximising shareholder value and so a further portfolio sale is unlikely to be pursued before the end of this year. The Board remains committed to shareholder engagement and will continue to consult with shareholders as further progress is made.
Dividend Declaration
The Board has declared an interim dividend in respect of the period from 1 July to 30 September 2023 of 1.365 pence per ordinary share in the capital of the Company, payable on or around 15 December 2023 to holders of such ordinary shares on the register on 1 December 2023. The ex-dividend date will be 30 November 2023.
The dividend will be paid as a Property Income Distribution.
This dividend is in line with the Company's target annual dividend of 5.46 pence per ordinary share in respect of the financial year ending 31 December 2023.
ENDS.
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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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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Rajpal Padam |
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Madison Kominski |
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Brunswick Group (Financial PR Adviser) |
Tel: 020 7404 5959 |
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Nina Coad |
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Diana Vaughton |
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Mara James |
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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 majority of the assets within the portfolio are subject to inflation-linked, long-term, 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 a lease with an Approved Provider, as well as forward funding of pre-let developments but does not include any direct development or speculative development.
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.
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