REG - PRS REIT PLC (The) - Fourth Quarter Update

PRS ReitAnnouncement

Mon 07:00

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RNS Number : 8262R  PRS REIT PLC (The)  21 July 2025

PRSR.L

 

The PRS REIT plc

("PRS REIT" or "the Company")

 

Fourth Quarter Update

Portfolio Completed and Rental Growth Remains Strong

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 in the fourth quarter of its
financial year ended 30 June 2025.

Q4 portfolio performance (1 April - 30 June 2025)

                                                                             At            At            At

                                                                             30 Jun 2025   31 Mar 2025   30 Jun 2024
 Number of completed homes                                                   5,478         5,443         5,396
 Estimated rental value ("ERV") per annum                                    £72.0m        £69.6m        £65.1m
 Number of contracted homes                                                  0             35            180
 ERV per annum                                                               n/a           £0.4m         £1.4m
 Completed and contracted sites                                              71            71            72
 ERV of completed and contracted sites (see note below)                      £72.0m        £70.0m        £66.5m
 Rent collected in period relative to rent invoiced for the same period

                                                                             99%           101%          100%
 Like-for-like rental growth on stabilised sites in the preceding 12 months

                                                                             9.6%          10%           11.7%

 

Notes:

·      ERV of completed and contracted sites is based on all completed
units being occupied/income producing

 

·      Following the Board's decision not to exercise an option to
purchase a 98-unit site, after considering net returns, the total number of
contracted and completed sites reduced to 71 sites from 72 at 31 December
2024, with the total ERV per annum and the total number of contracted homes
decreasing respectively by £1.0m and 98 units.

 

Delivery programme

As planned, during the fourth quarter, the 35 contracted homes that remained
under construction were delivered. This meant that the Company's portfolio as
at 30 June 2025 was fully completed and amounted to a total of 5,478 rental
homes, with an estimated rental value ("ERV") of £72.0 million per annum. The
Board believes it is the largest portfolio of build-to-rent, single family
homes in the UK, with homes predominantly located in the English regions,
outside London (North West, West Midlands, South East, Yorkshire and North
East).

Portfolio Performance

The portfolio's performance remains very strong. Rent collection^ in the
period was 99% (Q4 2024: 100%) and physical occupancy at 30 June 2025 was 96%,
with 5,242 of the 5,478 completed homes occupied (30 June 2024: 96%).  At
this point in time, a further 89 homes were reserved for applicants who had
passed referencing and paid rental deposits but had not yet moved in.
Including this cohort, occupancy at 30 June 2025 was 97%.

Total arrears net of bad debt provision at 30 June 2025 was c.£1.0m, which
remains low as a proportion of the enlarged portfolio (30 June 2024:
c.£1.1m).

Like-for-like rental growth on stabilised sites over the year to 30 June 2025
was 9.6% (year to 30 June 2024: 11.7%). Affordability (which is average rent
as a proportion of gross household income) continues to be favourable at c.24%
(2024: c.23%). The Office for National Statistics has an upper guidance limit
on average rent as a proportion of gross household income of 30%.

^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
fourth quarter of the financial year ended 30 June 2025 in early August 2025.
An interim quarterly dividend of 1.1 pence per ordinary share in respect of
the third quarter (January-March 2025) was paid to shareholders on 6 June
2025.

Dividends declared in respect of Q1, Q2 and Q3 2025 amounted to 3.2p per share
in total (Q1, Q2 and Q3 2024: 3.0p per share in total) and were covered by
European Public Real Estate Association ("EPRA") earnings.

Strategic Review and Formal Sale Process

An update on the Strategic Review and Formal Sale Process has been made in a
separate announcement issued at 7.00 a.m. this morning.

 

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 has invested 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 5,478 new rental homes as at 30 June 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).

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 build-to-rent ("BTR") regeneration
specialist, with offices in Manchester and London and Edinburgh. The
Company's principal focus is on the delivery of large-scale housing schemes
for the private rented sector and Sigma is the UK's leading provider of BTR
homes for the single family sector. The Company also has extensive experience
in the delivery of multi-family apartment schemes and 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 delivery and management
platform, which has delivered or is in the process of delivering over 13,500
homes across the UK to date. The Company has a significant pipeline of
development opportunities, which currently stands at over £5 billion in gross
development cost.  Sigma manages the letting of completed homes through its
property platform, which includes its award-winning rental brand 'Simple
Life'. The Company's subsidiary, Sigma PRS Management Ltd, is Investment
Adviser to The PRS REIT plc.

 

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