PRS REIT PLC (The) Second Quarter Update (6612Z)
January 14 2020 - 1:00AM
UK Regulatory
TIDMPRSR
RNS Number : 6612Z
PRS REIT PLC (The)
14 January 2020
14 January 2020
PRSR.L
The PRS REIT plc
("Company" or "PRS REIT")
Second Quarter Update
The PRS REIT, the closed-ended real estate investment trust
established to invest in new-build family homes in the Private
Rented Sector ("PRS"), is pleased to provide an update for the
second quarter of its financial year, comprising the three months
to 31 December 2019.
At 31 Dec At 30 At 31 Dec
2019 Sept 2018
2019
Completed homes
Total number of completed homes 1,617 1,361 775
Rental income per annum GBP14.9m GBP12.3m GBP7.0m
Contracted homes
Total number of contracted homes 3,328 3,422 2,800
Estimated rental value ("ERV") GBP32.7m GBP33.7m GBP26.2m
per annum
Total number of sites (completed
and contracted) 62 60 43
Gross development cost GBP771.3m GBP740.0m GBP530.0m
ERV per annum GBP47.6m GBP46.0m GBP33.2m
Over the course of the second quarter of the financial year, the
PRS REIT continued to make good progress in line with management
expectations. An additional 256 high quality rental homes were
completed in the period (First quarter ended 30 September 2019:
188), bringing the PRS REIT's total portfolio to 1,617 homes by the
end of the period (30 September 2019: 1,361). These new homes will
contribute GBP2.6m per annum to the Company's rental income,
increasing its annualised rental income to GBP14.9m (30 September
2019: GBP12.3m annualised). Demand remains strong and the REIT's
homes continue to rent well, with occupancy at 98%.
The total number of contracted sites now stands at 42 sites,
with just over 3,300 homes under development across them at the end
of the quarter. When complete, these homes are expected to generate
an annualised gross rent of around GBP32.7m, lifting the PRS REIT's
total ERV to GBP47.6m per annum (30 September 2019: GBP46.0m).
At the end of the quarter, the bulk of the PRS REIT's net
funding (c. GBP900m gross) had been contracted, with the balance
expected to be fully deployed by the end of the current financial
quarter. The pace of housing delivery continues to increase, and
the Company's 2,000(th) home is expected to be completed around the
end of the current quarter.
An interim dividend payment of 1.0 pence per ordinary share in
respect of the first quarter of the financial year was paid on 29
November 2019, and the Company continues to target a total dividend
of 5.0 pence per ordinary share for the current financial year(1)
.
(1.) This is a target only and there can be no assurance that
the target can or will be met and should not be taken as an
indication of the Company's expected or actual future results.
Accordingly, potential investors should not place any reliance on
this target in deciding whether or not to invest in the Company or
assume that the Company will make any distributions at all and
should decide for themselves whether or not the target dividend
yield is reasonable or achievable.
For further information, please contact:
The PRS REIT plc Tel: 020 3178 6378 (c/o KTZ Communications)
Steve Smith, Non-executive Chairman
Sigma PRS Management Limited Tel: 0333 999 9926
Graham Barnet, Malcolm Briselden
N+1 Singer Tel: 020 7496 3000
James Maxwell, James Moat, Ben
Farrow
G10 Capital Limited (part of the Tel: 020 3696 1302
IQEQ Group as AIFM)
Gerhard Grueter
KTZ Communications Tel: 020 3178 6378
Katie Tzouliadis, Dan Mahoney
NOTES TO EDITORS
About The PRS REIT plc
(www.theprsreit.com)
The PRS REIT is a closed-ended real estate investment trust
established to invest in the Private Rented Sector and to provide
shareholders with an attractive level of income together with the
potential for capital and income growth. It has raised a total of
GBP500m (gross) through its Initial Public Offering, on 31 May
2017, and a subsequent placing in February 2018. Both fundraisings
were supported by the UK Government's Homes England with direct
investments.
LEI: 21380037Q91HU97WZX58
About Sigma Capital Group plc
(www.sigmacapital.co.uk)
Sigma Capital Group plc ("Sigma") is a private rented sector,
residential development, and urban regeneration specialist, with
offices in Edinburgh, Manchester and London. Sigma's principal
focus is on the delivery of large scale housing schemes for the
private rented sector. It has 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.
Its subsidiary, Sigma PRS Management Limited, is Investment Adviser
to The PRS REIT plc. In April 2019, Sigma launched the Sigma
Scottish PRS Fund, the first dedicated vehicle to focus on the
creation of new rental homes for families in the private rented
sector in Scotland, and in October Sigma announced the expansion of
its build-to-rent activities in London.
About Sigma PRS Management Ltd
Sigma PRS Management Limited is a wholly-owned subsidiary of
AIM-quoted Sigma Capital Group plc 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
Investment Manager 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 or visit www.rns.com.
END
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