TIDMPRSR
RNS Number : 7087A
PRS REIT PLC (The)
27 September 2022
PRSR.L
THIS ANNOUNCEMENT HAS BEEN DETERMINED TO CONTAIN INSIDE
INFORMATION. THE PUBLICATION OF THIS ANNOUNCEMENT MEANS THAT THIS
INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
The PRS REIT plc
("the Company" or "the PRS REIT")
Update on Net Asset Value and Current Trading
The PRS REIT, the closed-ended real estate investment trust that
invests in high-quality, new build, single family homes for the
private rented sector ("PRS"), is pleased to provide an update on
its net asset value ("NAV") for the year ended 30 June 2022 and on
its activity and performance for the first two months of the new
financial year ending 30 June 2023.
Net asset value
As at 30 June 2022, the PRS REIT's unaudited NAV on an IFRS
basis, is expected to be not less than 116.0 pence per ordinary
share (31 December 2021: 104.3 pence (unaudited) and 30 June 2021:
99.0 pence (audited)), representing an increase of 11% and 17% over
the six-month and 12-month periods respectively. The EPRA NTA per
share (previously EPRA NAV per share) is expected to be the same as
NAV on an IFRS basis.
Current trading
Portfolio expansion and asset performance
At At At
31 August 30 Jun 2022 31 Mar 2022
2022
---------------------------------- ----------- ------------ ------------
Number of completed homes 4,841 4,786 4,616
Current anticipated rent per GBP49.1m GBP47.8m GBP45.5m
annum*
---------------------------------- ----------- ------------ ------------
Number of contracted homes 669 693 822
Estimated rental value ("ERV") GBP3.7m GBP4.4m GBP6.2m
per annum
Completed and contracted
sites 70 68 67
Current anticipated rent of
completed and ERV of contracted GBP52.8m GBP52.2m GBP51.7m
sites*
---------------------------------- ----------- ------------ ------------
2 months Year to 30 9 months
July and Jun 2022 to 31 Mar
Aug 2022 2022
---------------------------------- ----------- ------------ ------------
Rent collected in period
relative to rent invoiced
for same period 99 % 99% 99%
---------------------------------- ----------- ------------ ------------
*based on all completed units being occupied/income
producing
Construction activity continued to progress well, with 55 new
homes added to the portfolio since 30 June 2022, the end of the
last financial year. This has taken the total portfolio to 4,841
completed homes with an estimated rental value ("ERV") per annum of
GBP49.1m as at 31 August 2022. A further 669 homes were contracted
at that point and are at varying stages of the construction
process.
Of the 4,841 completed homes, 4,745 (98%) were occupied as at 31
August 2022, with a further 40 homes reserved for qualified
applicants with rental deposits paid. Rental demand remains high,
supported by a strong rental market and the attraction of the PRS
REIT's high-quality, well located and managed homes. Rent
collection was 99% in the two-month period. (This is rent collected
as a percentage of rent invoiced in the period). Total arrears
remain very low, at GBP0.6m on 31 August 2022.
Rental growth
The previously reported 5.1% like-for-like average rental growth
over the year on stabilised sites reflected blended growth rates
across both existing tenant renewals and re-lets to new tenants.
Rental growth on lettings to new tenants at c.10% has been
significantly higher than the average rental growth of 5.1% across
the portfolio of stabilised assets. This has contributed to an
increased ERV across the entire portfolio, with overall ERV in
excess of aggregate current anticipated rent, and also accounts for
the significant majority of the valuation uplift over the period. A
smaller but additional portion of valuation uplift is attributable
to the continued tightening of net yield from 4.2% at 31 December
2021 (30 June 2021: 4.25%) to 4.125% at 30 June 2022; a result of
the reversionary nature of the rents and strong demand for PRS
assets in the market.
Energy performance
All the Company's homes are built to be energy efficient, and
approximately 86% of homes in the portfolio are rated 'A' or 'B' in
terms of energy performance certification, with the remainder rated
'C'. As well as being environmentally desirable, this puts all
homes in compliance with proposed new regulation requiring all
rental homes to possess an energy performance certificate ("EPC")
of 'C' or above from 2025.
Dividend
The Company declared dividends totalling 4.0 pence per share for
the year ended 30 June 2022, and the annual dividend is now almost
fully covered by earnings on an annualised run rate basis, with
coverage continuing to grow during the financial year ending 30
June 2023 as construction, completions and lettings advance.
Audited full year results
The Company expects to publish its audited full year results on
11 October 2022.
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
Singer Capital Markets Tel: 020 7496 3000
James Maxwell, Asha Chotai
Panmure Gordon (UK) Limited Tel: 020 7886 2500
Chloe Ponsonby, Alex Collins
G10 Capital Limited (part of the IQEQ Group Tel: 020 3745 2826
as AIFM)
Paul Cowland
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 ("PRS") and to
provide shareholders with an attractive level of income together
with the potential for capital and income growth. The Company is
investing over GBP1bn in a portfolio of high-quality homes for
private rental across the regions, having raised a total of
GBP0.56bn (gross) through its Initial Public Offering, on 31 May
2017 and subsequent fundraisings in February 2018 and September
2021. The UK Government's Homes England has supported the Company
with direct investments. On 2 March 2021, the Company transferred
its entire issued share capital to the premium listing segment of
the Official List of the FCA and to the London Stock Exchange's
premium segment of the Main Market. At over 4,800 new rental homes,
the Company believes its portfolio is the largest build-to-rent
single family rental portfolio in the UK.
LEI: 21380037Q91HU97WZX58
About Sigma Capital Group Limited (formerly Sigma Capital Group
plc)
www.sigmacapital.co.uk
Sigma Capital Group Limited ("Sigma") is a PRS, residential
development, and urban regeneration specialist, with offices in
Edinburgh, Manchester and London, and is part of PineBridge
Investments, a private, global asset manager with $146bn in assets
under management at March 2022.
Sigma's principal focus is on the delivery of large-scale
housing schemes for the private rented sector. The business 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 property 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
business'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
Sigma Capital Group Limited 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 AIFM 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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