REG - Triple Point Soc.Hsg - Net Asset Value and Dividend Declaration

Social Housing REITAnnouncement

21/11/2024 07:00

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RNS Number : 0475N  Triple Point Social Housing REIT  21 November 2024

21 November 2024

 

Triple Point Social Housing REIT plc

(the "Company" or, together with its subsidiaries, the "Group")

NET ASSET VALUE AND DIVIDEND DECLARATION

 

The Board of Triple Point Social Housing REIT plc (the "Board") (ticker: SOHO)
is pleased to announce the Company's unaudited Net Asset Value ("NAV") as at
30 September 2024 and the declaration of the Group's third quarter interim
dividend, together with an operational update.

NAV as at 30 September 2024

The unaudited NAV reflects an independent RICS "Red Book" valuation of the
Company's portfolio (including all property acquisitions completed) as at 30
September 2024, prepared by Jones Lang LaSalle Limited, on an individual asset
basis (as required by IFRS).

 NAV
                                  As at 30 Sept 2024  As at 30 Jun 2024  % change

                                  (unaudited)         (unaudited)
 NAV per Ordinary Share (pence)*  110.82p             112.38p            (1.4)%

* As at 30 September 2024, the EPRA NTA and IFRS NAV for the Company were the
same.

The reduction in NAV resulted from a £5.7 million or 0.9% decrease in the
valuation of the Company's property portfolio, primarily due to further
adjustments attributable to properties leased to My Space Housing Solutions
("My Space").

As previously disclosed, My Space and Parasol Homes Limited ("Parasol") have
been the only two of the Company's 28 lessees to demonstrate material arrears.
All of the Company's Parasol leases were transferred to Westmoreland Supported
Housing ("Westmoreland") in August and so an update on My Space and
Westmoreland is provided below.

Westmoreland Update

The Company transferred all 38 properties (representing 9.6% of the rent
roll), previously leased to Parasol, to Westmoreland Supported Housing Limited
in August 2024.

In accordance with the Company's previous update on 20 August 2024, up to the
point of transfer Parasol  continued to pay rent in accordance with the
existing creditor's agreement, being 60% of full FRI lease rent, it was
expected that, following the transfer of properties to Westmoreland, rent
collected would increase to between 75% to 85% of existing FRI lease rent
during an initial stabilisation period (expected to last approximately 12
months from the date of transfer) and thereafter up to 90% of existing FRI
lease rent. The Company is pleased to confirm that rent collection is expected
to be in-line with 75% to 85% of FRI lease rent for the post transfer period
ending 31 December 2024.

My Space Update

The Company has not received any rent from My Space since the end of June
2024. The contracted rent roll of the My Space properties represents 8.1% of
the Company's portfolio. Historically, My Space's rent arrears have been, and
will continue to be, fully provisioned for through the Expected Credit Loss.

As indicated in the Interim Report, the Company has been working to transfer
all or some of the 34 properties leased to My Space to alternative Registered
Providers, with a focus on prioritising the interests of residents and
restoring rent collection.

Since its selection as the Company's Investment Manager on 30 September 2024
(expected to be effective in January 2025), Atrato Partners Limited ("Atrato")
has been working closely to help deliver a solution and a more comprehensive
update on the transfer plans will be provided to the market as soon as
appropriate.

Portfolio Sale Update

As noted in the interim results for the six months ended 30 June 2024, the
Company had expected to complete on the sale of a portfolio of properties with
a value in excess of £20 million in November 2024.

Despite successfully completing their operational due diligence and agreeing
terms on the portfolio, the purchaser has not been able to close the funding
required to progress the transaction at this time although they continue to
pursue funding options.

Dividend Declaration

 

The Board has declared an interim dividend in respect of the period from 1
July to 30 September 2024 of 1.365 pence per ordinary share in the capital of
the Company, payable on or around 13 December 2024 to holders of such ordinary
shares on the register on 29 November 2024. The ex-dividend date will be 28
November 2024.

The dividend will be paid as a Property Income Distribution and is fully
covered on an adjusted earnings basis.

This dividend is in line with the Company's target annual dividend of 5.46
pence per ordinary share in respect of the financial year ending 31 December
2024.(1)

 

 

ENDS

 

 

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
 Rajpal Padam
 Madison Kominski

 Brunswick Group (Financial PR Adviser)                 Tel: 020 7404 5959
 Nina Coad
 Robin Wrench
 Mara James

 

 

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/) .

 

(1) The target dividend is a target only and not a forecast. There can be no
assurance that the target will be met and it should not be taken as an
indication of the Company's expected or actual future results.

 

 

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.

 

The Company was admitted to trading on the Specialist Fund Segment of the Main
Market of the London Stock Exchange on 8 August 2017 and was admitted to the
premium segment of the Official List of the Financial Conduct Authority and
migrated to trading on the premium segment of the Main Market on 27 March
2018. The Company operates as a UK Real Estate Investment Trust ("REIT") and
is a constituent of the FTSE EPRA/NAREIT index.

 

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