REG - Triple Point Soc.Hsg - Share Buyback Programme & Portfolio Property Sale

Social Housing REITAnnouncement

18/04/2023 07:00

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RNS Number : 5064W  Triple Point Social Housing REIT  18 April 2023

 

18 April 2023

 

Triple Point Social Housing REIT plc

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

 

Share Buyback Programme and Portfolio Property Sale

 

Further to the Company's Trading Update on 3 February 2023, the board of
Triple Point Social Housing REIT plc (the "Board") today announces its
intention to commence a share buyback programme (the "Share Buyback
Programme") and provides an update on the progress of the sale of a portfolio
of the Company's properties, subject to market conditions and pricing.

 

The Company owns a portfolio of 497 properties across the United Kingdom,
focused on delivering Specialised Supported Housing, a sector where there
continues to be demand considerably in excess of supply.

 

The Company's portfolio generates long-term, inflation-linked cash flows which
contributed to a 0.73% increase in Net Asset Value to £439.3 million over the
course of the year ended 31 December 2022. The Group held cash and cash
equivalents of £30.1 million at 31 December 2022 and £13.1 million of cash
was available for further investment.

 

The Board believes that the discount to Net Asset Value per Ordinary Share
("NAV") at which the Company's shares currently trade materially undervalues
the Company and its portfolio.

 

Chris Phillips, Chair of the Company, said: "The Board and the Company's
Investment Manager remain focused on delivering value to shareholders, and we
are taking proactive measures to address the persistent discount of the
Company's share price compared to the prevailing NAV. We expect the sale of a
portfolio of properties, subject to market conditions and pricing, to deliver
shareholder value and are confident that, at current share price levels, the
net impact of the Share Buyback Programme will be accretive to the Company's
NAV and will benefit dividend cover."

 

Share Buyback Programme

 

The Board is pleased to announce the commencement of a Share Buyback Programme
and believes that the programme will be accretive to NAV and increase dividend
cover.

 

The Board has instructed its corporate broker, Stifel Nicolaus Europe Limited
("Stifel"), to purchase on behalf of the Company, subject to market
conditions, ordinary shares of the Company ("Ordinary Shares") pursuant to an
initial buyback programme, with a maximum aggregate consideration of up to £5
million. The Company has entered into a non-discretionary mandate with Stifel
to repurchase the Ordinary Shares on the Company's behalf and to make trading
decisions under the Share Buyback Programme independently of the Company
within parameters set by the Board, until such time that the initial £5
million consideration has been completed or the Share Buyback Programme is
otherwise terminated by the Board.

 

Following the proposed property sale, subject to market conditions and
pricing, described below, the Company may seek to allocate a proportion of the
sale proceeds to the Share Buyback Programme.

 

The Share Buyback Programme will be conducted in accordance with the general
authority to repurchase Ordinary Shares, previously granted by the Company's
shareholders at the 2022 Annual General Meeting (the "2022 Authority") and to
be sought at the 2023 Annual General Meeting (the "2023 Authority"). The
details of the 2022 Authority can be found on the Company's website at
https://www.triplepointreit.com/investors/72/. The maximum number of Ordinary
Shares that the Company is authorised to purchase under the 2022 Authority is
40,278,900. Upon expiry of the 2022 Authority, the maximum number of shares
that the Company shall be authorised to purchase will be such number of
Ordinary Shares as stated in the 2023 Authority.

Portfolio Property Sale

 

The Board and the Investment Manager confirm that, following a competitive
adviser selection process, CBRE has been appointed to market a portfolio of
the Company's properties.

 

The Board will now seek to conclude a sale, subject to market conditions and
pricing, which is deemed to deliver value to shareholders. Should any sale
proceed, the Board will look to return capital to shareholders through an
extension of the Share Buyback Programme described above.

 

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
 Mark Bloomfield
 Rajpal Padam

 Madison Kominski

 

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.

 

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