REG - PRS REIT PLC (The) - Third quarter update

PRS ReitAnnouncement

15/04/2025 07:02

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250415:nRSO9760Ea&default-theme=true

RNS Number : 9760E  PRS REIT PLC (The)  15 April 2025

PRSR.L

 

The PRS REIT plc

("PRS REIT" or "the Company")

 

Third Quarter Update

Continued Strong Portfolio Performance

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 quarter (1 January to
31 March 2025) of its financial year ending 30 June 2025.

Portfolio performance over the three months ended 31 March 2025

                                                                             At            At            At

                                                                             31 Mar 2025   31 Dec 2024   31 Mar 2024
 Number of completed homes                                                   5,443         5,437         5,308
 Estimated rental value ("ERV") per annum                                    £69.6m        £68.6m        £62.3m
 Number of contracted homes                                                  35            41            170
 ERV per annum                                                               £0.4m         £0.4m         £1.4m
 Completed and contracted sites                                              71            71            71
 ERV of completed and contracted sites*                                      £70.0m        £69.0m        £63.7m
 Rent collected in period relative to rent invoiced for the same period      101%          99%           101%
 Like-for-like rental growth on stabilised sites in the preceding 12 months

                                                                             10%           11%           12%

*based on all completed units being occupied/income producing

 

Delivery programme

The portfolio is almost fully delivered, with only 35 homes left in the
pipeline to be completed. Over the period six homes were completed and added
to the portfolio, taking the total number of completed homes in the portfolio
to 5,443 homes at 31 March 2025 (31 March 2024: 5,308). The estimated rental
value ("ERV") of the 5,443 completed homes was £69.6m per annum (31 December
2024: 5,437 completed homes with an ERV of £68.6m per annum). The remaining
35 homes in the delivery pipeline have an ERV of £0.4m per annum and are on
track to be completed by the end of June 2025.

Portfolio Performance

The portfolio continues to perform very strongly. Rent collection^ in the
period was 101% and physical occupancy at 31 March 2025 was 96%, with 5,204 of
the 5,443 completed homes occupied. At this date, a further 69 homes were
reserved for applicants who had passed referencing and paid rental deposits
but had not yet moved in. Including this cohort, occupancy at 31 March 2025
was 97%.

Total arrears net of bad debt provision at 31 March 2025 was c.£1.0m, which
remains low as a proportion of the enlarged portfolio (31 December 2024:
c.£1.0m).

Like-for-like rental growth on stabilised sites over the year to 31 March 2025
was 10% (year to 31 March 2024: 12%). Affordability (which is average rent as
a proportion of gross household income) continues to be favourable at 23%
(2024: 23%).  This is significantly better than the Office for National
Statistics 30% upper guidance limit on average rent as a proportion of gross
household income.

^Rent collection is defined as rent collected in the period against rent
invoiced in the same period.

Dividend

The Board expects to declare an interim quarterly dividend in respect of the
three months ended 31 March 2025 in early May 2025.

Total dividends declared over the first half of the financial year amounted to
2.1p per share (H1 2024: 2.0p). Dividends paid in the first half were 105%
covered by European Public Real Estate Association ("EPRA") EPS in the period.

Strategic Review and Formal Sale Process

As reported on 31 March 2025 with the Company's interim results, the Strategic
Review and Formal Sale Process launched in the first half of the current
financial year are ongoing. Discussions with a number of parties regarding the
acquisition of the Company are ongoing, alongside which the Board continues to
explore all the options available to the Company with a view to maximising
value for the Company's shareholders. Further updates will be made available
in due course and by no later than the end of June 2025

 

For further information, please contact:

 The PRS REIT plc                                     Tel: 020 3178 6378 (c/o KTZ Communications)

 Geeta Nanda, Non-executive Chairwoman

 Singer Capital Markets                               Tel: 020 7496 3000

 James Moat, James Maxwell, Asha Chotai

 G10 Capital Limited (AIFM and part of IQ-EQ group)   Tel: 020 7397 5450

 Maria Baldwin

 KTZ Communications                                   Tel: 020 3178 6378

 Katie Tzouliadis, Robert Morton

 

NOTES TO EDITORS

About The PRS REIT plc  https://www.theprsreit.com/
(https://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. The Company is listed on the Closed-ended investment funds
category of the FCA's Official List and its Ordinary Shares are traded on
the London Stock Exchange's Main Market. It is a constituent of
the FTSE 250 Index. With 5,443 new rental homes as at 31 March 2025, the
Company believes its portfolio is the largest build-to-rent single-family
rental portfolio in the UK.  LEI: 21380037Q91HU97WZX58

 

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).

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDGPUQPCUPAGQC