Prs Reit Dividends - PRSR

Prs Reit Dividends - PRSR

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Prs Reit (the) Plc PRSR London Ordinary Share GB00BF01NH51 ORD 1P
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 97.40 09:41:53
Open Price Low Price High Price Close Price Previous Close
97.60 97.40 97.60 97.40
more quote information »
Industry Sector
REAL ESTATE INVESTMENT TRUSTS

Prs Reit PRSR Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount
10/02/2021InterimGBX101/07/202031/12/202018/02/202119/02/202108/03/20210
09/11/2020InterimGBX130/05/202030/09/202019/11/202020/11/202011/12/20200
06/08/2020InterimGBX130/06/201930/06/202020/08/202021/08/202018/09/20204
18/06/2020InterimGBX101/12/201931/03/202025/06/202026/06/202017/07/20200
31/01/2020InterimGBX101/07/201931/12/201906/02/202007/02/202028/02/20200
31/10/2019InterimGBX130/05/201930/09/201914/11/201915/11/201929/11/20190
31/07/2019InterimGBX230/06/201830/06/201908/08/201909/08/201931/08/20195
29/04/2019InterimGBX101/12/201831/03/201909/05/201910/05/201931/05/20190
31/01/2019InterimGBX101/07/201831/12/201807/02/201908/02/201928/02/20190
31/10/2018InterimGBX130/05/201830/09/201808/11/201809/11/201830/11/20180
31/07/2018InterimGBX2.530/06/201730/06/201809/08/201810/08/201831/08/20185
30/04/2018InterimGBX101/12/201731/03/201810/05/201811/05/201831/05/20180
31/01/2018InterimGBX1.501/07/201731/12/201715/02/201816/02/201816/03/20180

Top Dividend Posts

DateSubject
13/4/2021
09:09
davebowler: Liberum; Mkt Cap £463m | Prem/(disc) -1.8% | Div yield 4.3% Event PRS REIT has reported total completed units of 3,590 at 31 March 2021 (December 2020: 3,163), representing a 13% increase (427 units) in the quarter. The total number of completed units in the period since June 2020 is 1,508 (72% rise). PRS REIT has now achieved 70% of its target of 5,200 completed units. The proportion of completed units has picked up considerably in recent quarters due to the number of sites now under construction and three portfolio acquisitions of completed properties. This includes a fully-let development of 123 homes from Blackrock Real Assets and 31 homes in Birmingham from Sigma Capital (the investment manager). Rent collection and occupancy remain high. Rent collection in in H2 2020 was 100%. Total arrears are currently £0.2m (0.6% of ERV on completed units). 95.6% of the completed units are occupied and a further 2.1% are reserved. The manager also reports that 44 of the homes under construction are pre-let. Liberum view Today's update confirms the progress highlighted in the recent interim report. PRS REIT is on track to reach the expected 5,000 completed units by late 2021/early 2022. NAV performance has picked up as the pace of completions accelerates, resulting in an uplift from development profits. The proportion of completed units increased markedly since June 2020 and will contribute to an improvement in dividend cover. Portfolio performance has been resilient over the last 12 months as rent collection levels have been relatively unaffected. Rental demand remains high with with rent levels holding at pre-Covid levels. The key focus for the company remains on progressing development schemes and building up the level of dividend cover (0.1x dividend cover in the six-month period to December 2020). The shares have re-rated significantly in recent weeks due to deployment progress and an improvement in income visibility.
29/3/2021
13:41
sphere25: And catching up with boring PRSR: "The Company's transfer from the Specialist Fund Segment to the Premium Segment of the Main Market of the London Stock Exchange took place on 2 March. The migration will enable us to broaden the share register and facilitates our eligibility for inclusion in FTSE's EPRA and UK Index Series." Just want to see how the buying comes in now from the trackers for the next review in June and whether it results in closing the NAV from the current price of 87.1 to the EPRA NAV of 96.2p. Nothing of note as yet, it is early. Have to see if the wider market holds completely stable till the review in June too, but should be easy to see any whoppers being bought here because PRSR barely bats an eyelid most of the time. All imo DYOR
24/3/2021
10:18
davebowler: Liberum; Event PRS REIT has reported an EPRA NAV per share of 96.2p at 31 December 2020 (95.1p at 30 June 2020), resulting in a NAV total return of 4.3% in the six-month period and 5.5% overall in 2020. Revaluation gains accounted for 95% of the returns in the period. The total number of completed and contracted units at 31 December 2020 was 5,126 (December 2019: 4,945). The portfolio is spread across 65 sites and has an ERV of £48.8m on completion (6.2% yield on cost). PRS REIT has reported total completed units of 3,163 at 31 December 2020 (June 2020: 2,082), representing a 52% increase (1,081 units) in six months. This represents 62% of the total number of completed and contracted units. The company expects completed units to rise to 5,000 by late 2021/early 2022. Net LTV has risen from 15% to 29% since June 2020 as deployment has progressed. The proportion of completed units has picked up considerably in recent quarters due to the number of sites now under construction and three portfolio acquisitions of completed properties (175 units). This includes a fully-let development of 123 homes from Blackrock Real Assets and 31 homes in Birmingham from Sigma Capital (the investment manager). Rent collection has remained robust with arrears unchanged at £0.2m (less than 1% of ERV). EPRA EPS in the half-year to December was 0.2p. Occupancy of completed units was 96.3% with a further 1.7% of units reserved. Like-for-like rental growth in H2 2020 was 0.5%.The company remains on track to distribute 4.0p in FY 2021 (June period end) and now expects to be able to increase the dividend in FY 2022. Liberum view NAV performance has picked up as the pace of completions accelerates, resulting in an uplift from development profits. The average uplift on completed assets to investment value was 9.7%. The proportion of completed units increased markedly in H2 2020 and will contribute to an improvement in dividend cover. Portfolio performance has been resilient throughout 2020 as rent collection levels have been relatively unaffected. Rental demand remains high with with rent levels holding at pre-Covid levels. The key focus for the company remains on progressing development schemes and building up the level of dividend cover (0.1x dividend cover in the six-month period to December 2020). We expect the shares to re-rate in 2021 as the company approaches its target of 5,200 units and income visibility improves.
12/2/2021
14:36
sphere25: Just bought more. Boring boring PRSR! Two weeks to get to 93p? Interested to see how the tracker funds approach the buying here. Did I mention how boring PRSR is? All imo DYOR
11/2/2021
10:32
sphere25: Wonder how far along they are in changing listing - possibly ready for the review in June? Nonetheless, good ole boring PRSR has almost closed that gap now so the bulk of the capital growth must be in the price now. With a minimum 4p dividend, the yield is hardly a disaster compared to cash or bonds so perhaps more of these lagging REIT's will re-rate higher as confidence in the economic recovery grows. To my untrained eye, it looks like the NAV are stable or actually going up in the sector with not only PRSR but BREI upgrading. There is alot more interest with much heavier buying in RDI recently and separately even HWG upgraded their numbers. Possibly a signal on the improving fundamental picture. Still, slow and boring ones have been quite good really. All imo DYOR
10/2/2021
11:14
davebowler: Liberum; Deployment progress leading to improved performance Mkt Cap £421m | Prem/(disc) -11.4% | Div yield 4.7% Event PRS REIT has reported an EPRA NAV per share of 96.1p at 31 December 2020 (95.0p at 31 December 2019), resulting in a NAV total return of 5.4% for 2020. An unchanged dividend of 1.0p has been declared for Q4 2020. Liberum view NAV performance has picked up as the pace of completions accelerates, resulting in an uplift from development profits. The proportion of completed units increased markedly in H2 2020 and will contribute to an improvement in dividend cover. PRS REIT reported total completed units of 3,163 at 31 December 2020 (June 2020: 2,082), representing a 52% increase (1,081 units) in six months. This represents 62% of the total number of completed and contracted units. The company expects completed units to rise to 5,000 by late 2021/early 2022. Portfolio performance has been resilient throughout 2020 as rent collection levels have been relatively unaffected. Rental demand remains high with with rent levels holding at pre-Covid levels. The key focus for the company remains on progressing development schemes and building up the level of dividend cover (0.03x dividend cover in the year to 30 June 2020). We expect the shares to re-rate in 2021 as the company approaches its target of 5,200 units. This should be supported by the move to the Premium Segment, enabling inclusion in the FTSE UK and EPRA indices.
21/12/2020
10:28
wingchan: Another massive conflict. The investment advisor sigma capital sells a site it developed and managed on behalf of BlackRock to the PRS Reit who it acts on behalf on.... presumably Sigma had a financial interest on the site depending on its performance for BlackRock which will have been driven largely by the sale price but don't worry, there was an "independent" valuation by Savills who undertake all of the Reit's and Sigma's valuation services...... total lack of corporate governance! An independent party and an independent valuer should have been appointed to act for the REIT in this transaction given the obvious conflict. Also for clarity Sigma were contractually obliged to acquire shares in the REIT. Under the terms of their development management agreement where they receive a generous 4% fee, half must be re-invested in the REIT. That they paid Investors Champion to put out a research note implying that they were buying shares of their own free will is seriously misleading. The 1.5m shares acquired by Sigma on 25th Nov were done so as a contractual obligation. What is curious given they could have issued new shares at NAV and invested the funds in their "attractive proposition", was that they instead bought them from an institution that was prepared to sell 1.5m shares at 76p. That says more about the outlook than anything. I hope the appointment of a joint broker is not a preclude to attempting to raise more equity taking the REIT back to cash drag and negative dividend cover. On every financial metric the Reit has underperformed to date. It has some way to go before DEPLOYING the £900m gross which was originally targeted in two years... The dividend yield will be sub 4% not 6%+ and that is after many more years taken to deploy the funds than was originally advised with initial sites having the benefit of rental growth. The NAV remains significantly below the initial raise price inspite of beneficial headwinds through rising house prices. Yield compression and a robust rental collection rate that compares favourably to many commercial property sectors. The NAV was meant to be growing at 10%+ per annum at this point per original marketing forecasts. The only beneficiary has been the Investment Advisor and yet the conflicts of interest continue unchallenged
25/11/2020
09:26
davebowler: Liberum; £1.1m share acquisitions by investment adviser Mkt Cap £372m | Prem/(disc) -19.2% | Div yield 5.2% Event Sigma Capital Group, the parent company of the investment adviser to PRS REIT, has acquired 1.5m shares in the company at a price of 76p per share. Sigma Capital now owns 5.9m shares (1.2% shareholding) in PRS REIT. Liberum view The £1.1m share acquisition demonstrates confidence in PRSR's portfolio. Capital deployment has progressed this year, with completed units representing 51% of the portfolio at the end of September. This remains the key area of focus for the company in order to build the level of dividend cover (0.03x dividend cover in the year to 30 June 2020). Portfolio performance has been resilient throughout 2020 as rent collection levels have been relatively unaffected. Rental demand remains high with with rent levels holding at pre-Covid levels.
07/4/2020
22:21
packoflies: Analysis of Interim Results – Improper governance by REIT Board & time to sack the Investment Advisor Sigma Capital • Claimed £771m completed and contracted GDC + £75m “strategically deferred” spending = claimed deployable funds of £846m • The £75m balance of funds were meant to be contracted by end of March at the latest as per the 14th Jan “2nd Quarter Update”. Over the intervening period ZERO additional funds have been committed or contracted with the figure remaining static at £771m. Given that the Coronavirus did not impact the UK until early to mid March (https://www.independent.co.uk/news/uk/home-news/coronavirus-uk-timeline-deaths-cases-covid-19-nhs-social-distancing-a9416331.html) it was fortuitous that the PRS REIT had been unable to commit ANY of remaining £75m prior to this and can now look to "deploy it on strategic income producing opportunities". A more cynical view would be that the funds have not been “strategically deferred” to take advantage of opportunities but that these remaining funds are not available to be drawn under the PRS REIT’s 45% maximum gearing as detailed below. • Current NAV of £470m supports debt of £385m assuming maximum permissible gearing of 45%. Taking account of dividends paid out of equity and overall cashflow to date, estimated deployable equity of approx. £430m. Max. total deployable funds of equity and debt of £815m, not £846m as claimed. Gross yield of 6.2% on GDC of £815m equates to £50.5m gross income. Deduction of 22.5% gross-to-net, administrative expenses and debt interest at 2.72% as per interim results, leaves estimated net income of £22.8m. Stabilised geared dividend of 4.61p per share pre any coronavirus related issues……… • Lack of comment on dividend in interim results other than indefinite deferral of dividend covering the 3 months to 31st March 2020. When the stabilised dividend target is reduced AGAIN from the already reduced 5.5p per share it will be blamed on the coronavirus but in truth would have comfortably been sub 5p regardless. • 2 years and 7 months from inception up to 31 Dec 2019, the REIT’s rental income just covers costs and debt interest but it remains significantly cashflow negative as there remains no dividend cover. The cancellation of the uncovered dividend for the 3 months to end of March 2020 and subsequent dividends is the sensible option to preserve deployable funds and NAV irrespective of resultant Coronavirus issues. • Deployed only £487m to 31st Dec 2019, of which only £212m are completed income producing assets (Notes to the Financial Statements 4.), of £900m gross funds. Noted under “debt facilities” it will take a further 18 months to complete the current phase of construction. Once again this makes a mockery of the comments by the Investment Adviser’s chief executive Graham Barnet in September 2018 where he outlined his desire to raise a third £250m in early 2019 with a clear intention to increase assets under management irrespective of the fact it was not in the best interests of PRS REIT shareholders as was the case with the raising of second £250m in Feb 2018……… There is a clear and fact based track record of Sigma acting in its best interests and not its investors but that is for another day. The 3rd raise thankfully did not happen but it illustrates the significant and ongoing conflicts of interest between the Investment Advisor and the PRS REIT. (hxxps://www.propertyweek.com/finance/the-prs-reit-aims-for-new-year-fundraising-of-250m/5098937.article) • Claimed that completed and contracted sites have a GDC of £771m. However, Capital Commitments outstanding as at 31st Dec 2019 were £189m (notes to the financial statement 3&8). Add to that £487m deployed to 31st Dec 2019 (see notes to financial statement 4) equates to a total GDC of £676m, £95m less than the claimed figure…….. • The Investment Advisor Sigma Capital is paid a (generously high) 4% development management fee. This is separate to the profit it makes from selling its own completed sites to the PRS REIT and the 1% annual management fee it is paid (hxxps://citywire.co.uk/investment-trust-insider/news/liberum-rental-housing-trust-pays-fund-manager-too-much/a1313075). Sigma is required under its contract with the PRS REIT to invest half of the development management fee in PRS REIT shares. Since the REIT’s inception up to 31st Dec 2019 the Investment Advisor had been paid £15.51m in development management fees alone so should have invested approx. £7.75m in PRS REIT shares. Yet as at 31st Dec 2019 Sigma had 4.39m shares……….. even allowing for bi-annual subscription of shares something is awry. • Stated gross to net of 18.2% in interim results but rental income in 6 months to 31st Dec of £5.607m less non-recoverable property costs of £1.140m as per income statement represents a 20.3% gross to net. This will spike significantly over the coming months in light of coronavirus but was already on an upward trajectory and will be a key determinant of the stabilised dividend yield. Year ended 30th June 2018 gross to net of 15.5%, Year ended 30th June 2019 gross to net of 17.7%.
04/10/2019
11:00
quintus1: Despite the positive remarks from the PRS REIT Chairman Steve Smith, the actual financials for the full year results 2018/19 make for disappointing reading. It follows June’s RNS announcement that the forecast stabilised dividend had been reduced from 6% to 5.5%. In light of the restated commitment to pay a 5% dividend until stabilisation in FY 2022, with the majority of the dividend still continuing to be from return of equity given the ongoing absence of significant rental income generation, it appears likely the 5.5% dividend target will have to be lowered again with NAV set to fall further. The PRS REIT pays out approx. £25m per annum as a dividend to achieve the development phase 5% dividend “target”. The majority of the dividend is still coming by way of return of equity, after the investment adviser Sigma Capital has first charged a 1% annual management fee which is calculated as a percentage of NAV and therefore notably includes unspent cash. Net rental income was £4.9m for the full 2018/19 year. However, that is pre the deduction of £5.9m of administrative expenses leaving the PRS REIT in negative cashflow of £1m for the year. This increases further to negative £26m after payment of the 5p dividend. Looking ahead to the 2019/20 year the annualised gross rental income at 30th June 2019 was £10.7m which nets down to approx. £8.8m after property maintenance/running costs. Further deductions of Sigma’s £5m per annum investment management fee and £0.9m for the REIT board’s salaries and administrative running costs will reduce this to £2.9m. There were also finance costs of £0.9m for the year although this was largely offset by interest received from unspent cash (as the REIT has unexplainably drawn £100m of debt before first spending the remaining £130m of equity raised).  As the remaining equity is expended in 2019/20 and beyond, interest on funds on deposit will undoubtedly decrease and debt interest increase as more debt is drawn.  It is not unreasonable therefore to assume a net cashflow position of only £2m for the 2019/20 year, prior to payment of the £25m annual dividend. From a cashflow position, two years in the REIT is barely breaking even. Once the dividend is paid, cashflow remains significantly negative with NAV likely to continue to fall as a result. Gross rents received should increase from £10.7m as the year progresses with more homes completing and becoming income producing however, a significant proportion of the dividend will continue to be paid out of funds raised for the foreseeable future. NAV at 95.8p has not deteriorated as much as feared (although the stated figure was pre the final 2p dividend which has since been paid and will have reduced NAV further) given investment gains on completed as well as ongoing development sites, but is nonetheless disappointing. From net funds raised of £500m, approx. £491m after costs of the share issues, £50m of dividend payments over the last two years and administrative costs uncovered by net rent in years 1 and 2, investable funds will have dropped to approx. £430m and falling. This was to be supplemented with £400m of debt and whilst NAV has been supported to a degree by investment gains, given the REIT’s gearing restriction at a maximum of 45% of NAV it is hard to see how the originally intended full £400m of debt can be drawn. Tellingly the REIT has only committed to £350m of debt facilities, with an ability to extend by a further £50m. Given the current situation it appears unlikely the additional £50m will be drawn without breaching gearing restrictions. One positive is that £150m of 15 year debt (yet to be drawn) has been secured at an exceptionally low swap rate of 1.164% plus margin which should be return enhancing. Notwithstanding, the significant reduction in investable equity, fall in NAV, and associated reduction in accompanying debt (albeit at low interest rates) will likely result in a further lowering of the stabilised dividend target. NAV could potentially be supported by further investment gains but regrettably the dividend cannot. In retrospect raising the second £250m in Feb 2018 was premature and the Board should take a large degree of the responsibility for this. It significantly increased cash drag and lowered overall returns. In light of the concerns above it would be imprudent to raise further equity until the current equity and debt are deployed and the actual stabilised dividend and NAV established. Equally, any future fundraise must surely be by way of a separate share class so as not to again adversely impact any existing shareholders who do not wish to participate in further equity injections. On analysis of the 2018/19 full year accounts, the Chairman, Steve Smith’s statement that the 5p dividend paid in the full year to 30th June 2019 “is in line with target” is disingenuous. The majority of the dividend was paid from funds raised. NAV has declined to 95.8p and is likely to be significantly lower as at today’s date, with the final 2p dividend having been paid post the year end. The NAV situation is more worrying still when considering the second £250m was raised at a premium of £1.025. The Prospectus stated equity could be used to top up the dividend provided it did not reduce NAV per share below 98p. However, equity has and it appears will continue to form the majority of the dividend into 2019/20 with the NAV already some way below the 98p criteria. It is concerning that the REIT board have allowed this given it explicitly contravenes the Prospectus. The apparent ability to reduce the NAV as low as required by paying out sufficient equity to achieve a 5p dividend, renders the 5p dividend target meaningless and undermines the Chairman’s statement: “Acta deos numquam mortalia fallunt”. Total return (including NAV) is critical but worryingly absent from Steve Smith’s comments. The Chairman goes on to state “the remainder of the £900m funds will be DEPLOYED over the coming months” with “91% of net proceeds already DEPLOYED”. This is misleading and one can only hope not deliberately so. Certainly the chairman should be more careful with his choice of words in future. The REIT board have prior to this adopted strict and defined definitions for the terms “committedR21; and “contracted221; for good reason. Deployed to the vast majority implies the £900m funds will have been spent ;within the next few months and therefore be generating an income. However, this is not the case. Investment property as at 30 June 2019, including recognised gains on partially developed sites, stood at £362m. The REIT had £230m of cash (which included £100m of debt drawn). It is unclear why the £100m of debt was drawn earlier this year, £50m of which as early as March according to a previous RNS, with debt interest chargeable, when at 30 June 2019 there would still have been £130m of equity to spend without having drawn any debt. Had the second fundraise not taken place, under the Prospectus the intention was to supplement the initial £250m raised with £200m of debt. This would have significantly enhanced returns and notably even then the £450m combined would not have been fully deployed as at 30 June 2019. As at year end the REIT had £230m of cash plus a further £250m of debt still to be drawn (potentially £300m of debt subject to gearing restrictions). Therefore there was £480m (potentially £530m) still to deploy. Given it had taken two years to deploy less than £362m (as that includes investment gains) it is simply incredulous for the Chairman to state 91% of funds have already been deployed with the remainder of the £900m funds to be deployed over the coming months. Perhaps he meant “committedR21; but sadly committed funds do not generate an income until they are deployed which as we have seen to date can take some time. One can only hope such rhetoric does not precede a further equity raise which would only increase cash drag and hamper returns further. Serious conflicts of interest remain (hxxps://citywire.co.uk/investment-trust-insider/news/john-spiers-what-put-us-off-popular-prs-reit/a1036956) around the investment adviser Sigma Capital who is: -investment adviser to the PRS REIT; -development manager to the PRS REIT and; -sells its own completed investment assets to the PRS REIT. The IA fee is 1% of NAV so approx. £5m p.a.. Notably the second £250m fundraise in Feb 2018, whilst being extremely premature and lowering returns given the resultant cash drag, doubled assets under management and hence doubled Sigma’s IA fee. The REIT is set to use a minimum of two thirds of the £900m gross funds, so £600m, on developing its own assets (although as noted above this is likely to be lower given cash leakage and potential gearing restrictions). Of this Sigma charges a 4% development management fee which if one adopts the £600m equates to £24m. The amount Sigma earns from completed investment sites it sells directly to the PRS REIT is unknown but if one assumes a not unreasonable 10-20% developers margin, the £300m (again likely to be lower) of investments sold to the REIT will generate approx. £27m - £50m of profits for Sigma. It is clear the fees to the company are substantial. That in itself is not necessarily an issue although in this case they do appear excessive. Given the poor financial performance to date and the REIT board’s contrasting positive and misleading comments in the full year results it does not instil faith that they are appropriately managing and overseeing the obvious conflicts of interest that Sigma Capital has with its many roles on both sides of the fence: “Quis Custodiet Ipsos Custodes” Outlook: Stabilised dividend target likely to be lowered further with potential for NAV to continue downward trajectory. One to revisit once all equity and available debt fully invested and income producing.
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