PRS REIT PLC (The) Fourth Quarter Update (8685S)

TIDMPRSR

RNS Number : 8685S

PRS REIT PLC (The)

14 July 2020

14 July 2020

PRSR.L

The PRS REIT plc

("Company" or "PRS REIT")

Fourth Quarter Update

The PRS REIT, the real estate investment trust that invests in new-build family homes in the Private Rented Sector ("PRS"), is pleased to provide an update for the fourth quarter of its financial year, comprising the three months to 30 June 2020.

 
                                     At 30 Jun      At 31   At 30 Jun 
                                          2020        Mar        2019 
                                                     2020 
 Completed homes 
 Total number of completed homes         2,082      1,947       1,173 
 Rental income per annum              GBP19.1m   GBP17.9m    GBP10.7m 
 
 Contracted homes 
 Total number of contracted homes        2,750      2,885       3,196 
 Estimated rental value ("ERV")       GBP27.1m   GBP28.3m    GBP30.3m 
  per annum 
 
 Completed and contracted homes 
 ERV per annum                        GBP46.2m   GBP46.2m    GBP41.0m 
 
                                       Q4 2020    Q3 2020     Q4 2019 
 Rent collected as a percentage 
  of rent due                              98%        99%         99% 
 

During the fourth quarter, which includes an eight week period when construction activity was suspended or disrupted because of COVID-19 related restrictions, only 135 additional rental homes were completed. This compares to 330 completed homes in the prior quarter. Nonetheless, in mid-June, after construction activity resumed, the Company reached the milestone of completing the 2,000(th) new-build home for its portfolio. By the end of June, the Company's total portfolio of completed homes stood at 2,082 homes (30 June 2019: 1,173), with an estimated rental value ("ERV") of GBP19.1m per annum (30 June 2019: GBP10.7m).

In addition, a total of 2,750 homes were under way at the end of the fourth quarter. When completed and let, they are expected to generate an annualised gross rent of around GBP27.1m, which takes the ERV of the PRS REIT's portfolio of assets to GBP46.2m per annum. The pace of construction, as previously highlighted, is now necessarily slower than before the COVID-19 outbreak, owing to the social distancing requirements necessary to maintain a safe working environment. However the Board is pleased with progress so far, and approximately 450 new homes are expected to be completed during the first quarter of the new financial year.

Rent Collection

Rent collection was not materially impacted by the national lockdown, and 98% of rent due in the fourth quarter has been collected (Q3: 99%). The Company has agreed payment plans for those households that have required assistance, and current lockdown-related rent arrears constitute just 0.49% of annual passing rent.

Rental demand remained strong, with prices steady at pre-COVID-19 levels, and reservations at 30 June 2020 stood at 429. The pace at which tenants are taking residence is beginning to increase with the continued easing of restrictions.

Dividends

As announced on 18 June 2020, an interim dividend payment of 1.0 pence per ordinary share in respect of the third quarter of the financial year will be payable on 17 July 2020 to shareholders on the register at 26 June 2020. Details of the fourth quarter interim dividend will be declared at the end of July. The Board continues to target(1) a total dividend of 4p per share for the financial year and a minimum of 4p per share for the new financial year ending 30 June 2021.

(1.) This is a target only and there can be no assurance that the target can or will be met and should not be taken as an indication of the Company's expected or actual future results. Accordingly, potential investors should not place any reliance on this target in deciding whether or not to invest in the Company or assume that the Company will make any distributions at all and should decide for themselves whether or not the target dividend yield is reasonable or achievable.

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, Mike McGill 
 
N+1 Singer                            Tel: [phone] 
 James Maxwell, James Moat, Ben 
 Farrow 
 
G10 Capital Limited (part of the      Tel: [phone] 
 IQEQ Group 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 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.

About Sigma PRS Management Ltd

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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July 14, 2020 02:00 ET (06:00 GMT)