Share Buyback Programme & Portfolio Property Sale
18 April 2023
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the "Group")
Share Buyback Programme and Portfolio Property Sale
Further to the Company's Trading Update on 3 February 2023, the board of Triple Point Social Housing REIT plc (the "Board") today announces its intention to commence a share buyback programme (the "Share Buyback Programme") and provides an update on the progress of the sale of a portfolio of the Company's properties, subject to market conditions and pricing.
The Company owns a portfolio of 497 properties across the United Kingdom, focused on delivering Specialised Supported Housing, a sector where there continues to be demand considerably in excess of supply.
The Company's portfolio generates long-term, inflation-linked cash flows which contributed to a 0.73% increase in Net Asset Value to £439.3 million over the course of the year ended 31 December 2022. The Group held cash and cash equivalents of £30.1 million at 31 December 2022 and £13.1 million of cash was available for further investment.
The Board believes that the discount to Net Asset Value per Ordinary Share ("NAV") at which the Company's shares currently trade materially undervalues the Company and its portfolio.
Chris Phillips, Chair of the Company, said: "The Board and the Company's Investment Manager remain focused on delivering value to shareholders, and we are taking proactive measures to address the persistent discount of the Company's share price compared to the prevailing NAV. We expect the sale of a portfolio of properties, subject to market conditions and pricing, to deliver shareholder value and are confident that, at current share price levels, the net impact of the Share Buyback Programme will be accretive to the Company's NAV and will benefit dividend cover."
Share Buyback Programme
The Board is pleased to announce the commencement of a Share Buyback Programme and believes that the programme will be accretive to NAV and increase dividend cover.
The Board has instructed its corporate broker, Stifel Nicolaus Europe Limited ("Stifel"), to purchase on behalf of the Company, subject to market conditions, ordinary shares of the Company ("Ordinary Shares") pursuant to an initial buyback programme, with a maximum aggregate consideration of up to £5 million. The Company has entered into a non-discretionary mandate with Stifel to repurchase the Ordinary Shares on the Company's behalf and to make trading decisions under the Share Buyback Programme independently of the Company within parameters set by the Board, until such time that the initial £5 million consideration has been completed or the Share Buyback Programme is otherwise terminated by the Board.
Following the proposed property sale, subject to market conditions and pricing, described below, the Company may seek to allocate a proportion of the sale proceeds to the Share Buyback Programme.
The Share Buyback Programme will be conducted in accordance with the general authority to repurchase Ordinary Shares, previously granted by the Company's shareholders at the 2022 Annual General Meeting (the "2022 Authority") and to be sought at the 2023 Annual General Meeting (the "2023 Authority"). The details of the 2022 Authority can be found on the Company's website at https://www.triplepointreit.com/investors/72/. The maximum number of Ordinary Shares that the Company is authorised to purchase under the 2022 Authority is 40,278,900. Upon expiry of the 2022 Authority, the maximum number of shares that the Company shall be authorised to purchase will be such number of Ordinary Shares as stated in the 2023 Authority.
Portfolio Property Sale
The Board and the Investment Manager confirm that, following a competitive adviser selection process, CBRE has been appointed to market a portfolio of the Company's properties.
The Board will now seek to conclude a sale, subject to market conditions and pricing, which is deemed to deliver value to shareholders. Should any sale proceed, the Board will look to return capital to shareholders through an extension of the Share Buyback Programme described above.
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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Mark Bloomfield |
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Rajpal Padam Madison Kominski |
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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.
There is increasing political pressure and social need to increase housing supply across the UK which is creating opportunities for private sector investors to help deliver this housing. The Group's ability to provide forward funding 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 is a UK Real Estate Investment Trust ("REIT") listed on the premium segment of the Official List of the UK Financial Conduct Authority and is a constituent of the FTSE EPRA/NAREIT index.
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