PRS REIT PLC (The) Fourth Quarter Update (8685S)
July 14 2020 - 1:00AM
UK Regulatory
TIDMPRSR
RNS Number : 8685S
PRS REIT PLC (The)
14 July 2020
14 July 2020
PRSR.L
The PRS REIT plc
("Company" or "PRS REIT")
Fourth Quarter Update
The PRS REIT, the real estate investment trust that invests in
new-build family homes in the Private Rented Sector ("PRS"), is
pleased to provide an update for the fourth quarter of its
financial year, comprising the three months to 30 June 2020.
At 30 Jun At 31 At 30 Jun
2020 Mar 2019
2020
Completed homes
Total number of completed homes 2,082 1,947 1,173
Rental income per annum GBP19.1m GBP17.9m GBP10.7m
Contracted homes
Total number of contracted homes 2,750 2,885 3,196
Estimated rental value ("ERV") GBP27.1m GBP28.3m GBP30.3m
per annum
Completed and contracted homes
ERV per annum GBP46.2m GBP46.2m GBP41.0m
Q4 2020 Q3 2020 Q4 2019
Rent collected as a percentage
of rent due 98% 99% 99%
During the fourth quarter, which includes an eight week period
when construction activity was suspended or disrupted because of
COVID-19 related restrictions, only 135 additional rental homes
were completed. This compares to 330 completed homes in the prior
quarter. Nonetheless, in mid-June, after construction activity
resumed, the Company reached the milestone of completing the
2,000(th) new-build home for its portfolio. By the end of June, the
Company's total portfolio of completed homes stood at 2,082 homes
(30 June 2019: 1,173), with an estimated rental value ("ERV") of
GBP19.1m per annum (30 June 2019: GBP10.7m).
In addition, a total of 2,750 homes were under way at the end of
the fourth quarter. When completed and let, they are expected to
generate an annualised gross rent of around GBP27.1m, which takes
the ERV of the PRS REIT's portfolio of assets to GBP46.2m per
annum. The pace of construction, as previously highlighted, is now
necessarily slower than before the COVID-19 outbreak, owing to the
social distancing requirements necessary to maintain a safe working
environment. However the Board is pleased with progress so far, and
approximately 450 new homes are expected to be completed during the
first quarter of the new financial year.
Rent Collection
Rent collection was not materially impacted by the national
lockdown, and 98% of rent due in the fourth quarter has been
collected (Q3: 99%). The Company has agreed payment plans for those
households that have required assistance, and current
lockdown-related rent arrears constitute just 0.49% of annual
passing rent.
Rental demand remained strong, with prices steady at
pre-COVID-19 levels, and reservations at 30 June 2020 stood at 429.
The pace at which tenants are taking residence is beginning to
increase with the continued easing of restrictions.
Dividends
As announced on 18 June 2020, an interim dividend payment of 1.0
pence per ordinary share in respect of the third quarter of the
financial year will be payable on 17 July 2020 to shareholders on
the register at 26 June 2020. Details of the fourth quarter interim
dividend will be declared at the end of July. The Board continues
to target(1) a total dividend of 4p per share for the financial
year and a minimum of 4p per share for the new financial year
ending 30 June 2021.
(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, Mike McGill
N+1 Singer Tel: 020 7496 3000
James Maxwell, James Moat, Ben
Farrow
G10 Capital Limited (part of the Tel: 020 3745 2826
IQEQ Group as AIFM)
Paul Turner
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.
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)
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END
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