PRS REIT PLC (The) First Quarter Update (1457Q)

TIDMPRSR

RNS Number : 1457Q

PRS REIT PLC (The)

17 October 2019

17 October 2019

PRSR.L

The PRS REIT plc

("Company" or "PRS REIT")

First Quarter Update

The PRS REIT, the closed-ended real estate investment trust established to invest in new build, family homes in the private rented sector ("PRS"), is pleased to provide an update for the first three months of its financial year to 30 June 2020.

 
                                     At 30 Sept   At 30 June   At 30 Sept   Year-on-year 
                                           2019         2019         2018         change 
 Completed homes 
 Total number of completed 
  homes                                   1,361        1,173          595           129% 
 Rental income per annum               GBP12.3m     GBP10.7m      GBP5.7m           116% 
 
 Contracted homes 
 Total number of contracted 
  homes                                   3,422        3,196        1,935            96% 
 Estimated rental value per 
  annum                                GBP33.7m     GBP30.3m     GBP18.4m            83% 
 
 Total number of sites (completed 
  or contracted)                             60           54           25           140% 
 Gross development cost ("GDC") 
  of sites                              GBP740m      GBP661m      GBP384m            92% 
 Estimated rental value of 
  homes per annum (completed 
  and contracted)                      GBP46.0m     GBP41.0m     GBP24.1m            91% 
 Uplift on development cost 
  to market value subject to 
  vacant possession (MV-VP)                n/a*        15.5%         n/a* 
 

* This is calculated on a six monthly basis at the financial year end and half-year end when independent valuations are prepared

Progress during the first quarter of the new financial year has continued positively, in line with management expectations, as reported in the Company's full year results announcement published on 25 September 2019, with 188 homes completed in the period. Year-on-year the Company has made significant progress, with the total number of homes completed by the end of the first quarter of the current financial year up by 129% to 1,361 across 26 sites (30 September 2018: 595 across 14 sites). Rental income has increased by 116% to GBP12.3m per annum (30 September 2018: GBP5.7m per annum) and demand for the Group's high-quality family homes remains strong.

At the close of the first quarter, a total of 43 sites were under construction (30 September 2018: 19 sites). When construction has fully completed, these sites will deliver a total of 3,796 rental homes for a GDC of GBP595m (30 September 2018: 2,530 homes for a GDC of GBP333m). The estimated rental value of both the completed properties and those in progress is GBP46.0m per annum (2018: GBP24.1m per annum).

Approximately 91% of the PRS REIT's total net funding (c.GBP900m gross) has now been deployed, and activity over the coming months is fully focused on deploying the balance of funds, delivering existing development sites and rental income growth as homes complete.

The dividend for the quarter ended 30 September 2019 will be announced at the end of October 2019.

DEFINITIONS

 
Contracted  refers to sites under construction (under a design & 
             build contract), which have been purchased by the PRS 
             REIT or the PRS REIT's Investment Adviser (forward sold 
             to the PRS REIT). 
 

For further information, please contact:

 
The PRS REIT plc                             Tel: [phone] (c/o KTZ Communications) 
 Steve Smith, Non-executive Chairman 
Sigma PRS Management Limited                 Tel: [phone] 
 Graham Barnet, Rob Sumner 
N+1 Singer                                   Tel: [phone] 
 James Maxwell, James Moat, Ben Farrow 
G10 Capital Limited (part of the IQEQ Group  Tel: [phone] 
 as AIFM) 
 Gerhard Grueter 
KTZ Communications                           Tel: [phone] 
 Katie Tzouliadis, Dan Mahoney 
 

NOTES TO EDITORS

About The PRS REIT plc

(www.theprsreit.com)

The PRS REIT is a closed-ended real estate investment trust established to invest in the Private Rented Sector and to provide shareholders with an attractive level of income together with the potential for capital and income growth. It has raised a total of GBP500m (gross) through its Initial Public Offering, on 31 May 2017, and a subsequent placing in February 2018. Both fundraisings were supported by the UK Government's Homes England with direct investments.

LEI: 21380037Q91HU97WZX58

About Sigma Capital Group plc

(www.sigmacapital.co.uk)

Sigma Capital Group plc ("Sigma") is a private rented sector, residential development, and urban regeneration specialist, with offices in Edinburgh, Manchester and London. Sigma's principal focus is on the delivery of large scale housing schemes for the private rented sector. It 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. Its subsidiary, Sigma PRS Management Limited, is Investment Adviser to The PRS REIT plc. In April 2019, Sigma launched the Sigma Scottish PRS Fund, the first dedicated vehicle to focus on the creation of new rental homes for families in the private rented sector in Scotland, and in October Sigma announced the expansion of its build-to-rent activities in London.

About Sigma PRS Management Limited

Sigma PRS Management Limited is a wholly-owned subsidiary of AIM-quoted Sigma Capital Group plc 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 Investment Manager 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)

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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October 17, 2019 02:00 ET (06:00 GMT)