Triple Point Social Housing REIT Acquisitions, Rent Collection and Dividend Cover (2892V)
August 06 2020 - 1:00AM
UK Regulatory
TIDMSOHO
RNS Number : 2892V
Triple Point Social Housing REIT
06 August 2020
6 August 2020
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the
"Group")
UPDATE ON ACQUISITIONS, RENT COLLECTION AND DIVIDEND COVER
The Board of Triple Point Social Housing REIT plc (ticker: SOHO)
is pleased to announce the following updates:
-- The Group completed the acquisition of a further 16
properties (comprising 70 individual units) for an aggregate
consideration of approximately GBP9.6 million (excluding
acquisition costs)
-- As at 5 August 2020, 100% of rent due for June 2020 was
received and 97% of the rent due for July 2020 had also been
received, with the balance expected to be received within the next
two weeks
-- The Company now has a look-through dividend cover of over
100%, as measured on an EPRA earnings run-rate basis(1)
Acquisitions Update
The Group has completed the acquisition of 16 properties,
comprising 70 individual units in total, for an aggregate
consideration of approximately GBP9.6 million (excluding
acquisition costs). The properties are located in the West Midlands
(64 units), the East of England (4 units) and Yorkshire (2
units).
The Group has entered into new FRI leases in respect of each of
the properties acquired for periods of between 20 and 40 years. The
leases are with specialist care providers or housing associations
regulated by the Regulator of Social Housing, including Blue Square
Residential, Inclusion Housing, Keys Group and Sandwell Community
Caring Trust.
The rents received under these leases are subject to annual,
upward-only rent reviews, increasing in line with the Consumer
Price Index.
The properties comprise specialist, high quality homes for
individuals with mental health and other support and care
needs.
The properties generate net initial yields in line with the
Company's existing portfolio.
Rental Collection and Dividend Cover
The Group continues to receive rents on a timely basis and in
line with both expectations and the experience in prior years. As
at 5 August 2020, 100% of rent due for June 2020 was received and
97% of rent due for July 2020 had also been received, with the
balance expected to be received within the next two weeks.
Following the further acquistions announced today the Company's
look-through dividend cover has increased to over 100% as measured
on an EPRA earnings run-rate basis(1) .
Note:
1 Including revenue from operational and forward funded properties
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
Triple Point Investment Management Tel: 020 7201 8989
LLP
(Investment Manager)
Ben Beaton
Max Shenkman
Isobel Gunn-Brown
Akur Capital (Joint Financial Adviser) Tel: 020 7493 3631
Tom Frost
Anthony Richardson
Siobhan Sergeant
Stifel (Joint Financial Adviser Tel: 020 7710 7600
and Corporate Broker)
Mark Young
Mark Bloomfield
Rajpal Padam
The Company's LEI is 213800BERVBS2HFTBC58.
Further information on the Company can be found on its website
at 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
assets within the portfolio are subject to inflation-adjusted,
long-term (typically from 20 years to 30 years), 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
an FRI lease with an Approved Provider, as well as forward funding
of pre-let developments but does not include any direct development
or speculative development.
There is increasing political and financial pressure on Housing
Associations to increase their housing delivery and this is
creating opportunities for private sector investors to participate
in the market. The Group's ability to provide forward financing for
new developments not only enables the Company to secure fit for
purpose, modern assets for its portfolio but also addresses the
chronic undersupply of suitable supported housing properties in the
UK at sustainable rents as well as delivering returns to
investors.
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.
This information is provided by RNS, the news service of the
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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