PRS REIT PLC (The) First Quarter Update (1623B)

TIDMPRSR

RNS Number : 1623B

PRS REIT PLC (The)

06 October 2020

6 October 2020

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 2021.

 
 
                                           At              At           At 
                                      30 Sept         30 June      30 Sept 
                                         2020            2020         2019 
---------------------------------  ----------  --------------  ----------- 
 Number of completed homes              2,634           2,082        1,361 
 Estimated rental value ("ERV")      GBP24.3m                     GBP12.3m 
  p.a.                                   p.a.   GBP19.1m p.a.         p.a. 
---------------------------------  ----------  --------------  ----------- 
 Number of contracted homes             2,369           2,803        3,422 
 ERV p.a.                            GBP23.3m 
                                         p.a.   GBP27.4m p.a.   33.7m p.a. 
 Completed and contracted sites            64              62           60 
 ERV of completed and contracted     GBP47.6m 
  sites                                              GBP46.6m     GBP46.0m 
---------------------------------  ----------  --------------  ----------- 
 Rent collected as a percentage 
  of total rent due                      100%             99%         100% 
---------------------------------  ----------  --------------  ----------- 
 

The pace of housing delivery is now accelerating, reflecting the volume of new houses under way. During the first quarter of the new financial year, 552 homes were completed, taking the portfolio at 30 September 2020 to 2,634 completed homes (30 June 2020: 2,082 and 30 September 2019: 1,361 homes). As a result, the total estimated rental value ("ERV") of the portfolio has increased to GBP24.3m per annum, a 98% rise year-on-year (30 September 2019: GBP12.3m per annum).

At the close of the quarter, a further 2,369 homes were under way at varying stages of the development process. When completed and let, these homes will generate an annualised ERV of GBP23.3m per annum. This will take the PRS REIT's portfolio to 5,003 completed homes, with an ERV of GBP47.6m per annum. Approximately 96% of the Company's net funding is now in deployment, with the remainder expected to be deployed by the end of 2020 as the Company progresses to its initial portfolio target of 5,200 rental homes.

Rent collection over the first quarter was high, and the amount of rent collected matched rent invoiced during the period. Rental demand has also remained strong. At 30 September 2020, 2,337 homes were occupied, and a further 145 qualified applicants were due to take occupancy.

The dividend for the first financial quarter ended 30 September 2020 will be announced later in October. The Company continues to target a minimum total dividend of 4.0p per ordinary share for the current financial year ending 30 June 2021, in line with the Board's revised strategy set due to the impacts of COVID-19.

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 
  Steve Smith, Non-executive Chairman           KTZ Communications) 
 Sigma PRS Management Limited                  Tel: [phone] 
  Graham Barnet, Mike McGill 
 N+1 Singer                                    Tel: [phone] 
  James Maxwell, James Moat, Ben Farrow 
 G10 Capital Limited (part of the IQEQ Group   Tel: [phone] 
  as AIFM) 
  Paul Turner 
 KTZ Communications                            Tel: [phone] 
  Katie Tzouliadis, Dan Mahoney 
 

NOTES TO EDITORS

About The PRS REIT plc

(www.theprsreit.com)

The PRS REIT plc 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. The Company is investing GBP0.9bn in a portfolio of high quality homes for private rental across the regions, having 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 PRS, 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. The Company 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.

Sigma has created an unrivalled PRS Platform, which sources sites and brings together construction resource to develop them, enabling Sigma to deliver an integrated solution to partners. As well as sourcing sites and managing all stages of the planning and development process, Sigma also manages the rental of completed homes through its award winning rental brand 'Simple Life'. The Company's subsidiary, Sigma PRS Management Limited, is Investment Adviser to The PRS REIT plc.

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).

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October 06, 2020 02:00 ET (06:00 GMT)