Triple Point Soc.Hsg - Portfolio Update - Highstone Housing Association
03/11/2022 11:31
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RNS Number : 2420F Triple Point Social Housing REIT 03 November 2022
3 November 2022
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the "Group")
Portfolio Update - Highstone Housing Association
The Board of Triple Point Social Housing REIT plc (ticker: SOHO) notes the
Regulatory Notice published today by the Regulator of Social Housing (the
"Regulator") in relation to Highstone Housing Association ("Highstone"). This
follows the Regulator's ongoing review of the specialised supported housing
sector which the Board welcomes, bringing as it does, higher levels of
accountability and transparency.
Highstone, a registered provider focused on the supported housing sector, has
recently been subject to a review by the Regulator, resulting in Highstone
being deemed non-compliant with regards to elements of the Governance and
Financial Viability Standard. This reflects the Regulator's desire to see
Highstone demonstrate improvement in the areas of governance, business
planning and risk management. As Highstone had fewer than 1,000 social housing
units under management based on the most recent statistical data return, no
formal rating was given by the Regulator.
As at 30 June 2022, Highstone represents 4.2 per cent of the Group's current
portfolio value and 3.7 per cent of the Group's rent roll. All rent payable
under the leases with the Group continues to be paid in full.
The Group's investment manager, Triple Point Investment Management LLP (the
"Manager") has an established relationship with Highstone and is in regular
dialogue with the housing association, particularly with regard to the
regulatory review. The Company notes that Highstone has committed to work with
the Regulator to address the issues outlined in this Regulatory Notice and had
already implemented certain changes, prior to regulatory engagement.
The Manager has liaised with the Group's independent valuer, Jones Lang
LaSalle Limited, who has confirmed that there should be no material impact on
the value of the Group's property portfolio as a result of the Regulatory
Notice.
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
Triple Point Investment Management LLP Tel: 020 7201 8989
(Investment Manager)
Max Shenkman
Isobel Gunn-Brown
Akur Capital (Joint Financial Adviser) Tel: 020 7493 3631
Tom Frost
Anthony Richardson
Siobhan Sergeant
Stifel (Joint Financial Adviser and Corporate Broker) Tel: 020 7710 7600
Mark Young
Mark Bloomfield
Rajpal Padam
The Company's LEI is 213800BERVBS2HFTBC58.
Further information on the Company can be found on its website at
www.triplepointreit.com (http://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.
Additional information on regulation
The Specialised Supported Housing sector is regulated by the Regulator who
carries out assessments on registered providers either through a scheduled
In-depth assessment ("IDA") or reactive engagement. When a registered provider
passes the 1,000-unit threshold, it automatically becomes subject to a
detailed IDA by the Regulator. The IDA assesses compliance with the
requirements of the Governance and Financial Viability Standard. The outcome
of an IDA results in the Regulator publishing a formal grading (V 1-4 for
Viability and G 1-4 for Governance, where V1-2 and G1-2 are considered
"compliant" ratings, and V3-4 and G3-4 are considered "non-compliant"
ratings), known as a regulatory judgement.
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