TIDMPRSR
RNS Number : 1506L
PRS REIT PLC (The)
11 January 2021
11 January 2021
PRSR.L
The PRS REIT plc
("the Company" or "the PRS REIT")
Second Quarter Update
and
Move to the Premium Segment of the Main Market
The PRS REIT, the closed-ended real estate investment trust
established to invest in high-quality, new build, family homes in
the private rented sector ("PRS"), is pleased to provide an update
on activity over the second quarter of its financial year ending 30
June 2021 and on the Board's consideration of a move from the
Specialist Fund Segment to the Premium Segment of the Main Market
("Premium Segment").
Second Quarter Activity
At At
31 Dec 2020 30 Sept At
2020 31 Dec 2019
----------------------------------- ------------- --------- -------------
Number of completed homes 3,163 2,634 1,617
Estimated rental value ("ERV") GBP29.4m
per annum GBP24.3m GBP14.9m
----------------------------------- ------------- --------- -------------
Number of contracted homes 1,963 2,369 3,328
ERV per annum GBP19.4m GBP23.3m GBP32.7m
Completed and contracted sites 65 64 62
ERV of completed and contracted GBP48.8m
sites GBP47.6m GBP47.6m
----------------------------------- ------------- --------- -------------
Rent collected in period relative
to rent invoiced for the same
period 100% 100% 100%
----------------------------------- ------------- --------- -------------
The pace of home completions has stepped up markedly over the
last six months, reflecting the significant number of sites now
under construction and advancing to maturity. The number of homes
added to the portfolio in the second quarter, which included the
Christmas period, was 529. This took housing delivery to 1,081
homes over the first six months of the current financial year,
including those homes acquired from BlackRock Real Assets in
December. By comparison, 1,546 homes were added over the entirety
of the last financial year.
The quarter also saw the Company reach full commitment of its
funding resource of GBP900m (gross) in December with the
acquisition of the fully-let development of 123 homes from
BlackRock Real Assets.
In total, the Company's portfolio at 31 December 2020 stood at
3,163 completed homes (30 September 2020: 2,634) with an ERV of
GBP29.4m per annum (30 September 2020: GBP24.3m).
The Company is well into the final stages of delivering its
initial portfolio, which once fully optimised, is anticipated to be
around 5,200 homes, with an ERV of approximately GBP50.0m per
annum. Delivery of the 5,000(th) home is currently expected in late
2021/early 2022.
Both rent collection and rental demand in the quarter was
strong. As with the quarters ended 30 September 2020 and 31
December 2019, the amount of rent collected during the quarter
ended 31 December 2020 matched rent invoiced during the period.
Total arrears at 31 December 2020 was GBP0.2m, representing less
than 1% of annualised ERV on completed units. Arrears have remained
broadly constant over the last six months despite the significant
growth in rent roll.
The number of applicants seeking a place on reservation lists
for completed homes remained high. At 31 December 2020, 3,045 homes
out of the portfolio of 3,163 completed homes were occupied, and a
further 55 qualified applicants were due to take occupancy.
The construction and lettings sectors remain open in England's
third national lockdown, which commenced on 4 January 2021. The
Company's partners are prioritising the health and welfare of all
staff, customers and suppliers, and continue to ensure that social
distancing and other precautionary measures are in place.
Dividend and Net Asset Value
The dividend for the second financial quarter ended 31 December
2020 will be announced in February. The Company continues to target
a minimum total dividend of 4.0p per ordinary share for the current
financial year ending 30 June 2021. The Company will also provide
an update on its net asset value as at 31 December 2020 on the same
date.
Move to the Premium Segment of the Main Market
The Company announced in its audited full year results for the
year ended 30 June 2020 that the Board was considering the benefits
of a transfer of the Company's listing from the Specialist Fund
Segment to the Premium Segment of the Main Market ("Premium
Segment"). The Board can now confirm its intention to apply to the
FCA for the Company's issued share capital to be admitted to the
Premium Segment in early 2021. The transfer is expected to broaden
the Company's share register and facilitate its eligibility for
inclusion in FTSE's EPRA and UK Index Series.
As part of the FCA's requirements for transferring the listing,
the Company intends to incorporate some additional investment
restrictions within its published investment policy, which will
require the prior approval of shareholders at a general meeting.
These restrictions will not impact on the Company's stated
strategy. The Company will make further announcements in respect of
the proposed changes to its investment policy and the transfer of
its listing to the Premium Segment in due course.
DEFINITIONS
Contracted refers to sites under construction (under a design &
build contract), which have been purchased by the PRS
REIT or the PRS REIT's Investment Adviser (forward sold
to the PRS REIT).
For further information, please contact:
The PRS REIT plc Tel: 020 3178 6378 (c/o
Steve Smith, Non-executive Chairman KTZ Communications)
Sigma PRS Management Limited Tel: 0333 999 9926
Graham Barnet, Mike McGill
N+1 Singer Tel: 020 7496 3000
James Maxwell, James Moat, Sebastian Burke
Panmure Gordon (UK) Limited Tel: 020 7886 2500
Chloe Ponsonby(Corporate Broking), Alex Collins
(Corporate Finance)
G10 Capital Limited (part of the IQEQ Group Tel: 020 3745 2826
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 plc 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. The Company is investing
GBP0.9bn in a portfolio of high quality homes for private rental
across the regions, having 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 PRS, 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. The Company 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.
Sigma has created an unrivalled PRS platform, which sources
sites and brings together construction resource to develop them,
enabling Sigma to deliver an integrated solution to partners. As
well as sourcing sites and managing all stages of the planning and
development process, Sigma also manages the rental of completed
homes through its award winning rental brand 'Simple Life'. The
Company's subsidiary, Sigma PRS Management Limited, is Investment
Adviser to The PRS REIT plc.
About Sigma PRS Management Limited
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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