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PRSR Prs Reit (the) Plc

79.50
0.30 (0.38%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Stock Type
Prs Reit (the) Plc PRSR London Ordinary Share
  Price Change Price Change % Share Price Last Trade
0.30 0.38% 79.50 16:35:29
Open Price Low Price High Price Close Price Previous Close
79.00 79.00 80.30 79.50 79.20
more quote information »
Industry Sector
REAL ESTATE INVESTMENT TRUSTS

Prs Reit PRSR Dividends History

Announcement Date Type Currency Dividend Amount Ex Date Record Date Payment Date
31/01/2024InterimGBP0.0115/02/202416/02/202408/03/2024
02/11/2023InterimGBP0.0109/11/202310/11/202301/12/2023
02/08/2023InterimGBP0.0110/08/202311/08/202301/09/2023
25/04/2023InterimGBP0.0104/05/202305/05/202326/05/2023
07/02/2023InterimGBP0.0116/02/202317/02/202303/03/2023
02/11/2022InterimGBP0.0110/11/202211/11/202230/11/2022
25/07/2022InterimGBP0.0104/08/202205/08/202226/08/2022
12/04/2022InterimGBP0.0121/04/202222/04/202213/05/2022
18/01/2022InterimGBP0.0127/01/202228/01/202211/02/2022
05/11/2021InterimGBP0.0118/11/202119/11/202103/12/2021
10/02/2021InterimGBP0.0118/02/202119/02/202108/03/2021
09/11/2020InterimGBP0.0119/11/202020/11/202011/12/2020
07/08/2020InterimGBP0.0120/08/202021/08/202018/09/2020
18/06/2020InterimGBP0.0125/06/202026/06/202017/07/2020
31/01/2020InterimGBP0.0106/02/202007/02/202028/02/2020
31/10/2019InterimGBP0.0114/11/201915/11/201929/11/2019
04/07/2019InterimGBP0.0208/08/201909/08/201930/08/2019
29/04/2019InterimGBP0.0109/05/201910/05/201931/05/2019

Top Dividend Posts

Top Posts
Posted at 18/1/2024 08:56 by makinbuks
Spec, whilst I share your concern over the managers motivation I don't agree that no one is prepared to discuss this. If you look back to the exchanges in October of last year here we covered this in some detail. I particularly like the input that Grainger is 34% and PRSR 36% incl admin. I also refer you to the answer given at the company meeting where they said they upgrade bathrooms and kitchens and increase rent accordingly
Posted at 17/1/2024 21:51 by nexusltd
@Jimbo. Interesting take. Thank you.

I propose a thought experiment. Say this community owned the PRSR properties and:
1) We agreed to have a single nationwide managing agent to take care of finding renters, take care of contracts, respond to renters' calls for assistance, etc. What fee could we negotiate as a % of ERV?
2) Given the age profile, quality, and relatively low tenant turnover (low rents) what would be the annual maintenance capex we need to budget for, as a % of the EV?
Posted at 05/11/2023 09:07 by masurenguy
Interesting share tip - no position but added to my watchlist.

MIDAS SHARE TIPS: Home in on cash from PRS Reit
4 November 2023

The group was set up in 2017 to deliver high-quality homes at affordable rates, while generating robust income for shareholders. To date, it has delivered on each of those ambitions, amassing a portfolio of more than 5,000 purpose-built, private rental homes and paying attractive dividends along the way. Yet PRS shares have fallen from £1.10 in the summer of 2022 to just 79p today, with investors deserting property stocks in droves, concerned by rising interest rates and weak economic growth. For PRS, the decline seems overdone, reflecting neither the value of its properties nor its growth potential.

Earnings per share were 3.1p in the last financial year and dividends were 4p, so some of the money paid out to shareholders came from the company's balance sheet rather than tenants' rents. That should change this year as PRS is on track to add another 400 homes to its portfolio, taking the estate to 5,500 homes, each of which will be generating rent and ensuring that dividends are covered by earnings. Brokers predict a 16% increase in rental income to more than £46m by next June, rising to £51m in 2025. Dividends are likely to remain at 4p this year, but they should rise steadily from 2024.

Midas verdict: PRS Reit shares have been hit by stock market woes and now look like a bargain. At 79p, the stock offers attractive dividend income, capital growth potential and the opportunity for investors to help solve one of the UK's most pressing problems. Buy.
Posted at 11/10/2023 08:52 by spectoacc
"All homes for The PRS REIT plc are marketed under Sigma’s Simple Life private rental brand."



[...] (Edit - Trustpilot link blocked, but easy to Google it.)


I believe Simple Life are owned by Sigma and aren't a separate co. I assume it's Simple Life to whom the 8% +VAT is being paid by PRS shareholders.

So it sort of is "In-house", just that it's c.£6m a year being ripped out the trust.

Open to anyone putting me right.

It isn't even my main gripe:

1.PRS appear to be subprime lettings (or "cheap end", for want of a better description) without getting the enhanced rents for that end of the market;

2. There's a cliff edge CapEx cost ahead. No way should newbuild be costing this much in repairs/maintenance already, tho I acknowledge @Makinbuks' point about eg £700pcm = c£500 pa. But £500 on each of 5,000 relatively new properties? What will that look like when it's kitchens/bathrooms?


Would add that the RCF, which they're using to finish off a few hundred remaining houses, is costing c.6%.

And a cliff edge refinancing a long way down the line on the long-term debt, which isn't likely to be cheaper than now.

And an uncovered divi.

I can see rents rising, the divi getting covered, but costs steadily rising up to the cliff edge of bathrooms/kitchens. So no divi growth of note.

Is it unreasonable to assume say two years of "repairs/maintenance" at 10x existing? ie £500 pa per house atm; you'd be doing well to get a bathroom or kitchen for just £5k these days but do them in consecutive years, and 6% of rent becomes 60% of rent :)

What am I missing?

Having been involved exposing HOME, have become increasingly cynical, & more than happy to hear counter-arguments. One is "It's all in the price". PRS isn't HOME, but I'm not sure it's what it was sold as either.
Posted at 10/10/2023 14:42 by pdosullivan
I would be inclined to disregard NAV based valuations. The dividend is 4.0p and will only be covered by underlying earnings this year. I don't see much room for the dividend to grow in the near term. At 70p that is a yield of 5.7%. Considering the returns available on safe investment products at this time I think we are close enough to fair value absent a shift in market rates.
Posted at 10/10/2023 11:17 by makinbuks
I don't necessarily think lenders would foreclose (indeed Govt would pressure them to hold off), but they would extract a price at the expense of equity.

I agree that gap between the share price and NAV could attract an outright bid, but the insurers are not operators. Why not take a stake in PRSR and then invest in a fund managed by them?
Posted at 10/10/2023 11:01 by davebowler
Liberum-

Room to go to cover dividend
Analyst: Shonil Chande

Mkt Cap £364m | Share price 66.3p | Prem/(disc) -43.4% | Div yield 6.0%

Event

PRS REIT’s EPRA NTA per share 120.1p, as at 30 June 2023, represented a 3.2% increase over the FY period and a 6.6% total return. Like-for-like rental growth over the year on stabilised sites was 7.5%, based on a blended growth rate of c.12% on re-lettings to new tenants and c.7% on existing tenant renewals. The average net investment yield, as at 30 June 2023, was 4.47%, This compared with an average interest cost of 3.8% on total fixed long-term debt of £352m (37% gearing).

As at 30 September 2023, the ERV of the completed and contracted homes was c.£61m p/a, based on total completed homes of 5,129. In terms of the reversionary potential, the ERV, based on contracted homes, was £5.1m higher than passing rent, as at 30 June 2023. PRSR is targeting an unchanged 4p dividend for FY24, which it expects to be run-rate covered. The cash cost of the dividend is c.£22m.
Posted at 04/10/2023 09:06 by spectoacc
A thread of a bunch of people arguing whether something is true or not - which it probably isn't.

Can't see any Holdings RNS implying RICA have any large stake in PRS.

As for PRSR themselves - the substantial and largely unexplained "non-recoverable property costs" of 18% puts me off. As does the fact they now can't grow - plenty geared already, no chance of raising equity.

At some point, their houses age and need CapEx, with no new ones having been added.

Difficult to argue it's expensive here, but will that 18% recur each year? What is it?
Posted at 21/8/2023 19:54 by smithers1
Other thing to look out for in terms of dividend cover is whether the dividend announcement is a Property Income distribution (rental income) or a non-Property Income Distribution (essentially increases in NAV but paid out as a dividend via a return of equity raised and not yet deployed). The most recent dividend was 100% non-pid. The previous dividend was 75% PID / 25% non-PID.

As at end of June ERV of £55m
Less 5-10% to get passing rent= £49.5m-£52.25m
Less 20% gross-to-net = £39.6m - £41.8m
Less debt interest of £16m = £23.6m - £25.8m
Less investment management fee of £5.1m and other admin expenses totals less £7.5m = £16.1m - £18.3m
Divided by 549.25m shares in issue = 2.9p - 3.3p covered dividend.
With rents rising and most debt costs fixed
Posted at 20/8/2023 23:01 by smithers1
Thanks pdosullivan. That's useful. My only comment is you have used ERV to calculate dividend cover. The ERV is based on the rent achieved for new lettings applied to all other homes of the same house type on that development I.e. if every property was let at the current full market rent. The passing rent of the portfolio (rents actually being charged) will always be below the ERV. PRSR have noted rental increases for existing tenants are lower than for new lets. Makes sense as you do not want to lose sitting Tenants over a few per cent as voids and re-letting costs would quickly wipe this out. But it is unclear how much lower the passing rent of the whole portfolio is below the stated £55m ERV. PRSR do not as yet include the passing rent in their reports and it is not possible to establish this from rental income figures in the half year and annual reports as the portfolio has been growing as they have been building more homes and deploying the last of the capital. It would be a useful inclusion in the reports moving forwards to see where the passing rent sits in relation to the stated ERV.

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