REG - PRS REIT PLC (The) - Q2 Update

PRS ReitAnnouncement

17/01/2024 07:00

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RNS Number : 9028Z  PRS REIT PLC (The)  17 January 2024

 

17 January 2024

PRSR.L

The PRS REIT plc

("the PRS REIT" or "the Company")

Second Quarter Update

 

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 performance over the second quarter (1 October
to 31 December 2023) of its current financial year ending 30 June 2024.

 

                                           At            At             At 31 Dec 2022
                                           31 Dec 2023   30 Sept 2023
 Number of completed homes                 5,264         5,129          4,913
 Estimated rental value ("ERV") per annum  £60.3m        £57.6m         £50.7m
 Number of contracted homes                312           395            613
 ERV per annum                             £3.1m         £3.1m          £6.6m
 Completed and contracted sites            72            71             71
 ERV of completed and contracted sites     £63.4m        £60.7m         £57.3m
 Rent collected                            99%           98%            98%

 

Delivery programme

 

The Company's homes delivery programme is now at a very mature stage. During
the second quarter, which included the Christmas period, a further 135 rental
homes were completed, taking the number of completed homes in the portfolio at
the half-year end on 31 December 2023 to 5,264 and overall delivery to
approximately 95% complete.

 

The estimated rental value ("ERV") of the 5,264 completed homes is £60.3
million per annum, approximately 19% higher than at the same point in the
prior year (31 December 2022: 4,913 homes, ERV of £50.7 million per annum).
The ERV increase reflects both the increase in completed homes and strong
rental growth.

 

As at 31 December 2023, a further 312 homes, with a combined ERV of £3.1
million, were contracted and under way, at varying stages of the construction
process. Once these homes have been completed, the ERV of the portfolio is
expected to increase to c.£63.4 million per annum (30 September 2023: £60.7
million per annum).

 

Asset performance

 

Rental demand for the Company's homes remains very high, reflected in very
strong rental growth and occupancy rates.  Occupancy at 31 December 2023
stood at 97% with 5,087 of the 5,264 completed homes occupied. A further 47
homes were reserved for applicants who      had passed referencing and
paid rental deposits, giving an occupancy rate of 98%. Like-for-like rental
growth for the 12 months to 31 December 2023 was 11% (2022: 6%).

 

Rent collection (defined as rent collected in the period relative to rent
invoiced in the same period) for the quarter ended 31 December 2023 was
extremely robust at 99%. Arrears were low at £0.6 million at 31 December 2023
(31 December 2022: £0.7 million).  This represents c.1% of annualised ERV on
completed units.

 

Affordability, which is average rent as a proportion of gross household
income, continues to be well within Homes England's upper guidance limit of
35%. Reflecting the tenant base, where average household income has increased,
the Company's homes have an affordability ratio of c.22% of gross household
income at 31 December 2023 (30 September 2023: 22%).

 

Dividend

 

The Company expects to announce the interim quarterly dividend, relating to
the second quarter of the current financial year, towards the end of January
2024.

 

 

 

For further information, please contact:

 

 The PRS REIT plc                                                               Tel: 020 3178 6378

 Steve Smith, Non-executive Chairman                                            (c/o KTZ Communications)

 Sigma PRS Management Ltd                                                       Tel: 0333 999 9926

 Graham Barnet, Mike McGill

 Singer Capital Markets                                                         Tel: 020 7496 3000

 James Maxwell, Asha Chotai (Investment Banking) Alan Geeves, James Waterlow,
 Sam Greatrex (Sales)

 Jefferies International Limited                                                Tel: 020 7029 8000

 Gaudi Le Roux, Tom Yeadon,

 Harry Randall, Ollie Nott

 G10 Capital Limited (part of IQ-EQ)                                            Tel: 0207 397 5450

 Maria Baldwin

 KTZ Communications                                                             Tel: 020 3178 6378

 Katie Tzouliadis, Robert Morton

 

NOTES TO EDITORS

 

About The PRS REIT plc www.theprsreit.com (http://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. With over 5,200 new
rental homes, the Company believes its portfolio 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 (http://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. Sigma's principal focus is on the delivery of large-scale housing
schemes for the private rented sector. The Company 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 excellent property procurement and management 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 manages the rental of completed homes through its award-winning
rental brand 'Simple Life'. The Company's subsidiary, Sigma PRS Management
Ltd, is Investment Adviser to The PRS REIT plc.

 

About Sigma PRS Management Ltd

Sigma PRS Management Ltd 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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