REG - Triple Point Soc.Hsg - Portfolio Sale and Lease Transfer

Triple Point Social Housing REITAnnouncement

03/05/2024 07:00

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RNS Number : 0900N  Triple Point Social Housing REIT  03 May 2024

3 May 2024

 

Triple Point Social Housing REIT plc

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

PORTFOLIO SALE AND LEASE TRANSFER

 

Further to the December 2023 annual results, the Board of Directors of Triple
Point Social Housing REIT plc (the "Board") have continued to consult with
shareholders to identify the best means to deliver shareholder value.
Following this shareholder consultation, the Board and Triple Point Investment
Management LLP ("Triple Point" or the "Investment Manager") today provide an
update on initial proposed actions.

Following the sale of four specialised supported housing properties in August
2023 for c.£7.6 million, principally in line with book value and representing
a 9.6% uplift to the purchase price, the Company intends to make further
portfolio sales this year. The Investment Manager is currently in the process
of agreeing heads of terms in relation to the sale of a portfolio. Following
the successful conclusion of any portfolio sales, the Board will prioritise
the return of capital to shareholders through further share buybacks, with
consideration also given to leverage levels and any debt repayment
obligations.

As reported in the December 2023 annual results, 90.2% of rent was collected
during the period, however two out of 27 Approved Providers, My Space and
Parasol, were in material rental arrears. The Company will now look to
transfer all 38 properties currently leased to Parasol (representing 8.1% of
the Company's Gross Asset Value and 9.7% of the rent roll) to Westmoreland
Housing Association ("Westmoreland"). The welfare of residents is a key
priority for the Group and, therefore, the transfer will involve a tenant
consultation process. Subject to this tenant consultation process and support
from various stakeholders, the transfer to Westmoreland is expected to be
completed before the announcement of the Company's half year results for the
period to 30 June 2024 which are expected to be released in September 2024.

The Company currently has no properties leased to Westmoreland, however the
Investment Manager has spent several months engaging with and undertaking due
diligence on Westmoreland to determine their suitability to take on the
properties currently leased to Parasol. Westmoreland benefits from a strong
Board made up of 6 independent Board members and the CEO. The organisation has
a high-quality management team and generates a recurring annual surplus.
Following the transfer of the properties to Westmoreland, the Board expects
rent collection to increase from its current levels.

Separately, the Company continues to make progress with My Space where it is
supporting the management team in delivery of its turnaround plan and rent
payments are increasing.

The Board will announce the Company's unaudited NAV as at 31 March 2024,
dividend guidance for FY24 and the declaration of the first quarterly interim
dividend immediately following the Company's Annual General Meeting on or
around 16 May 2024.

 

 

 

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/) .

 

 

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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