Q3 Trading Update & Dividend Declaration
PRSR.L
The PRS REIT plc
("the PRS REIT" or "the Company")
Third Quarter Update and
Dividend Declaration
Portfolio Continues to Perform Strongly
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 for the third financial quarter ended 31 March 2022 and to declare the dividend payment relating to that period.
Third quarter performance
|
|
At 31 Mar 2022 |
At 31 Dec 2021 |
At 31 Mar 2021 |
|
Number of completed homes |
4,616 |
4,489 |
3,590 |
|
Estimated rental value ("ERV") per annum |
£45.5m |
£43.5m |
£33.3m |
|
Number of contracted homes |
822 |
949 |
1,536 |
|
ERV per annum |
£6.2m |
£8.2m |
£15.8m |
|
Completed and contracted sites |
67 |
67 |
65 |
|
ERV of completed and contracted sites |
£51.7m |
£51.7m |
£48.8m |
|
Rent collected in period relative to rent invoiced for the same period |
99% |
99% |
99% |
|
Like-for-like rental growth on stabilised sites in the preceding 12 months |
4.8% |
3.2% |
|
Delivery Progress
During the quarter, 127 new rental homes were added to the Company's portfolio. This took the total number of homes added during the current financial year to 632 and the total number of completed homes in the portfolio to 4,616 as at 31 March 2022, a year-on-year increase of 29%. With fixed price design & build contracts in place, the Company continued to benefit from insulation against rising material costs.
The estimated rental value ("ERV") of the 4,616 completed homes in the portfolio at the end of March was £45.5m per annum, approximately 37% higher than at the same point in 2021 (31 March 2021: 3,590 homes with an ERV of £33.3m per annum). A further 822 homes with an ERV of £6.2m per annum were contracted as at 31 March 2022, and are at varying stages of the construction process. The Company plans to acquire two further sites before the financial year-end, utilising debt funding, and continues to anticipate completion of the 5,000th home towards the end of calendar 2022.
Asset Performance
The portfolio performed very well, with occupancy at 98% and rent collection* at 99% as at 31 March 2022. Of the total of 4,616 completed homes 4,513 were occupied at the quarter end, and a further 40 homes were reserved for prospective applicants who had passed referencing and paid rental deposits. Total arrears at 31 March 2022 were low at £0.5m (31 March 2021: £0.2m) . In the twelve months to 31 March 2022, like-for-like rental growth was strong at 4.8% on stabilised sites.
Dividend declaration
The Board is pleased to declare an interim quarterly dividend of 1.0 pence per ordinary share in respect of the third quarter of the financial year. The dividend, which will be a Property Income Distribution ('PID'), will be payable on Friday 13 May 2022 to shareholders on the register on Friday 22 April 2022. The ex-dividend date will be Thursday 21 April 2022.
*Rent collection is defined as rent invoiced in the period against rent collected in the same period.
For further information, please contact:
|
The PRS REIT plc
|
Tel: 020 3178 6378 (c/o KTZ Communications) |
|
Sigma PRS Management Limited
|
Tel: 0333 999 9926 |
|
Singer Capital Markets
|
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 Cowland
|
Tel: 020 7397 5450 |
|
KTZ Communications Katie Tzouliadis, Dan Mahoney |
|
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 ("PRS") and to provide shareholders with an attractive level of income together with the potential for capital and income growth. The Company is investing over £1bn in a portfolio of high quality homes for private rental across the regions, having raised a total of £0.56bn (gross) through its Initial Public Offering, on 31 May 2017 and subsequent fundraisings in February 2018 and September 2021. The UK Government's Homes England has supported the Company with direct investments. On 2 March 2021, the Company transferred its entire issued share capital to the premium listing segment of the Official List of the FCA and to the London Stock Exchange's premium segment of the Main Market. On 16 July 2021, the Company announced the completion of the 4,000th new rental home for its portfolio, which the Company believes is the largest build-to-rent single family rental portfolio in the UK.
LEI: 21380037Q91HU97WZX58
About Sigma Capital Group Limited (formerly Sigma Capital Group plc)
www.sigmacapital.co.uk
Sigma Capital Group Limited ("Sigma") is a PRS, residential development, and urban regeneration specialist, with offices in Edinburgh, Manchester and London, and is part of PineBridge Investments, a private, global asset manager with $133bn in assets under management as at March 2021.
Sigma's principal focus is on the delivery of large scale housing schemes for the private rented sector. The business 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 property 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 business'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 Sigma Capital Group Limited 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 AIFM 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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