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Sigma Capital Group (SGM)

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Thursday 17 October, 2019

Sigma Capital Group

Re: The PRS REIT plc - First Quarter Update

RNS Number : 1462Q
Sigma Capital Group PLC
17 October 2019
 

17 October 2019

AIM: SGM

 

 

SIGMA CAPITAL GROUP PLC

("Sigma")

The private rented sector ("PRS") and urban regeneration specialist

 

Re: The PRS REIT plc - First Quarter Update

 

Sigma, the private rented sector, residential development and urban regeneration specialist, notes that The PRS REIT plc ("REIT") has issued an update for the first three months of the financial year to 30 June 2020.

 

Sigma's subsidiary, Sigma PRS Management Limited, is Investment Adviser to the REIT, sourcing investments, managing assets and providing advice on a day-to-day basis.

 

A copy of the announcement can be found below, and via the link below.

https://www.theprsreit.com/page/regulatory-news-service 

 

Enquiries:

 

Sigma Capital Group plc

 

Graham Barnet, Chief Executive

 

T: 020 3178 6378 (today)

 

 

Malcolm Briselden, Finance Director

 

T: 0333 999 9926

 

 

 

 

 

KTZ Communications

 

Katie Tzouliadis, Dan Mahoney

 

T: 020 3178 6378

 

 

 

 

 

N+1 Singer
(NOMAD and Broker)

 

James Maxwell, James Moat, Ben Farrow

 

T: 020 7496 3000

 

 

17 October 2019

PRSR.L

The PRS REIT plc

("Company" or "PRS REIT")

 

First Quarter Update

 

The PRS REIT, the closed-ended real estate investment trust established to invest in new build, family homes in the private rented sector ("PRS"), is pleased to provide an update for the first three months of its financial year to 30 June 2020.

 

 

At 30 Sept

2019

At 30 June

2019

At 30 Sept

2018

Year-on-year change

Completed homes

 

 

 

 

Total number of completed homes

1,361

1,173

595

129%

Rental income per annum

£12.3m

£10.7m

£5.7m

116%

 

 

 

 

 

Contracted homes

 

 

 

 

Total number of contracted homes

3,422

3,196

1,935

96%

Estimated rental value per annum

£33.7m

£30.3m

£18.4m

83%

 

 

 

 

 

Total number of sites (completed or contracted)

 

60

 

54

 

25

 

140%

Gross development cost ("GDC") of sites

£740m

£661m

£384m

92%

Estimated rental value of homes per annum (completed and contracted)

 

£46.0m

 

£41.0m

 

£24.1m

 

91%

Uplift on development cost to market value subject to vacant possession (MV-VP)

 

 

n/a*

 

 

15.5%

 

 

n/a*

 

* This is calculated on a six monthly basis at the financial year end and half-year end when independent valuations are prepared

 

Progress during the first quarter of the new financial year has continued positively, in line with management expectations, as reported in the Company's full year results announcement published on 25 September 2019, with 188 homes completed in the period. Year-on-year the Company has made significant progress, with the total number of homes completed by the end of the first quarter of the current financial year up by 129% to 1,361 across 26 sites (30 September 2018: 595 across 14 sites). Rental income has increased by 116% to £12.3m per annum (30 September 2018: £5.7m per annum) and demand for the Group's high-quality family homes remains strong.

 

At the close of the first quarter, a total of 43 sites were under construction (30 September 2018: 19 sites). When construction has fully completed, these sites will deliver a total of 3,796 rental homes for a GDC of £595m (30 September 2018: 2,530 homes for a GDC of £333m). The estimated rental value of both the completed properties and those in progress is £46.0m per annum (2018: £24.1m per annum).

 

Approximately 91% of the PRS REIT's total net funding (c.£900m gross) has now been deployed, and activity over the coming months is fully focused on deploying the balance of funds, delivering existing development sites and rental income growth as homes complete.

 

The dividend for the quarter ended 30 September 2019 will be announced at the end of October 2019.

 

 

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, Rob Sumner

 

Tel: 0333 999 9926

N+1 Singer 
James Maxwell, James Moat, Ben Farrow

 

Tel: 020 7496 3000

 

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

Gerhard Grueter

 

Tel: 020 3696 1302

KTZ Communications

Katie Tzouliadis, Dan Mahoney

Tel: 020 3178 6378

 

NOTES TO EDITORS

 

About The PRS REIT plc
(www.theprsreit.com)

 

The PRS REIT 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. It has 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 private rented sector, 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. It 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. Its subsidiary, Sigma PRS Management Limited, is Investment Adviser to The PRS REIT plc. In April 2019, Sigma launched the Sigma Scottish PRS Fund, the first dedicated vehicle to focus on the creation of new rental homes for families in the private rented sector in Scotland, and in October Sigma announced the expansion of its build-to-rent activities in London.   

 

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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