TIDMSOHO
RNS Number : 7146S
Triple Point Social Housing REIT
18 March 2021
18 March 2021
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the
"Group")
Portfolio Update
The Board of Triple Point Social Housing REIT plc (ticker: SOHO)
notes the Regulatory Notices published on 18 March 2021 by the
Regulator of Social Housing (the "Regulator") in relation to
Hilldale Housing Association ("Hilldale") and Pivotal Housing
Association ("Pivotal"). This follows the Regulator's ongoing
review of the specialised supported housing sector which the Board
welcomes, bringing as it does, higher levels of accountability and
transparency.
The Group's investment manager, Triple Point Investment
Management LLP (the "Manager"), has liaised with the Group's
independent valuer, Jones Lang LaSalle Limited, who has advised
that there should be no material impact on the value of the Group's
property portfolio as a result of the Regulatory Notices .
Hilldale Housing Association
Hilldale, a registered provider focused on the supported housing
sector, has recently been subject to a review by the Regulator,
resulting in Hilldale being deemed non-compliant with regards to
elements of the Governance and Financial Viability Standard. As
Hilldale had fewer than 1,000 social housing units under management
based on the most recent statistical data return, no formal rating
was given by the Regulator.
The Group has 30 assets leased to Hilldale, the aggregate value
of which, as at 31 December 2020, was GBP52.9 million. Hilldale
represents 9.3 per cent of the Group's current portfolio value and
9.5 per cent of the Group's rent roll. All rent payable under the
leases with the Group continues to be paid in full.
The Manager has an established relationship with Hilldale and is
in regular dialogue with them, particularly with regard to the
regulatory review. The Regulator notes that Hilldale has started to
improve its governance and is in the process of agreeing a new
business plan and risk control framework and has committed to
working with the Regulator to address the points outlined in the
notice.
Pivotal Housing Association
Pivotal, a registered provider focused on the supported housing
sector, has recently been subject to a review by the Regulator,
resulting in Pivotal being deemed non-compliant with regards to
elements of the Governance and Financial Viability Standard. As
Pivotal had fewer than 1,000 social housing units under management
based on the most recent statistical data return, no formal rating
was given by the Regulator.
The Group has two assets leased to Pivotal, the aggregate value
of which, as at 31 December 2020, was GBP3.7 million. Pivotal
represents 0.6 per cent of the Group's current portfolio value and
0.7 per cent of the Group's rent roll. All rent payable under the
leases with the Group continues to be paid in full.
The Manager has an established relationship with Pivotal and is
in regular dialogue with them, particularly with regard to the
regulatory review. The Group notes Pivotal has ongoing engagement
with the Regulator and is currently taking steps to address the
Regulator's concerns.
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-linked,
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 pressure and social need to
increase housing supply across the UK which is creating
opportunities for private sector investors to help deliver this
housing. The Group's ability to provide forward funding 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.
Additional information on regulation
The Specialised Supported Housing sector is regulated by the
Regulator who carries out assessments on registered providers
either through a scheduled In-depth assessment ("IDA") or reactive
engagement. When a registered provider passes the 1,000-unit
threshold, it automatically becomes subject to a detailed IDA by
the Regulator. The IDA assesses compliance with the requirements of
the Governance and Financial Viability Standard. The outcome of an
IDA results in the Regulator publishing a formal grading (V 1-4 for
Viability and G 1-4 for Governance, where V1-2 and G1-2 are
considered "compliant" ratings, and V3-4 and G3-4 are considered
"non-compliant" ratings), known as a regulatory judgement.
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END
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