PRS REIT PLC (The) Q3 Trading Update & Dividend Declaration (0359I)

TIDMPRSR

RNS Number : 0359I

PRS REIT PLC (The)

12 April 2022

PRSR.L

The PRS REIT plc

("the PRS REIT" or "the Company")

Third Quarter Update and

Dividend Declaration

Portfolio Continues to Perform Strongly

The PRS REIT, the closed-ended real estate investment trust that invests in high-quality, new build, family homes in the private rented sector ("PRS"), is pleased to provide an update on activity for the third financial quarter ended 31 March 2022 and to declare the dividend payment relating to that period.

Third quarter performance

 
                                                At             At             At 
                                       31 Mar 2022    31 Dec 2021    31 Mar 2021 
-----------------------------------  -------------  -------------  ------------- 
 Number of completed homes                   4,616          4,489          3,590 
 Estimated rental value ("ERV")           GBP45.5m       GBP43.5m       GBP33.3m 
  per annum 
-----------------------------------  -------------  -------------  ------------- 
 Number of contracted homes                    822            949          1,536 
 ERV per annum                             GBP6.2m        GBP8.2m       GBP15.8m 
 Completed and contracted sites                 67             67             65 
 ERV of completed and contracted          GBP51.7m       GBP51.7m       GBP48.8m 
  sites 
-----------------------------------  -------------  -------------  ------------- 
 Rent collected in period relative 
  to rent invoiced for the same 
  period                                       99%            99%            99% 
-----------------------------------  -------------  -------------  ------------- 
 Like-for-like rental growth on 
  stabilised sites 
  in the preceding 12 months                  4.8%           3.2% 
-----------------------------------  -------------  -------------  ------------- 
 

Delivery Progress

During the quarter, 127 new rental homes were added to the Company's portfolio. This took the total number of homes added during the current financial year to 632 and the total number of completed homes in the portfolio to 4,616 as at 31 March 2022, a year-on-year increase of 29%. With fixed price design & build contracts in place, the Company continued to benefit from insulation against rising material costs.

The estimated rental value ("ERV") of the 4,616 completed homes in the portfolio at the end of March was GBP45.5m per annum, approximately 37% higher than at the same point in 2021 (31 March 2021: 3,590 homes with an ERV of GBP33.3m per annum). A further 822 homes with an ERV of GBP6.2m per annum were contracted as at 31 March 2022, and are at varying stages of the construction process. The Company plans to acquire two further sites before the financial year-end, utilising debt funding, and continues to anticipate completion of the 5,000(th) home towards the end of calendar 2022.

Asset Performance

The portfolio performed very well, with occupancy at 98% and rent collection* at 99% as at 31 March 2022. Of the total of 4,616 completed homes 4,513 were occupied at the quarter end, and a further 40 homes were reserved for prospective applicants who had passed referencing and paid rental deposits. Total arrears at 31 March 2022 were low at GBP0.5m (31 March 2021: GBP0.2m) . In the twelve months to 31 March 2022, like-for-like rental growth was strong at 4.8% on stabilised sites.

Dividend declaration

The Board is pleased to declare an interim quarterly dividend of 1.0 pence per ordinary share in respect of the third quarter of the financial year. The dividend, which will be a Property Income Distribution ('PID'), will be payable on Friday 13 May 2022 to shareholders on the register on Friday 22 April 2022. The ex-dividend date will be Thursday 21 April 2022.

*Rent collection is defined as rent invoiced in the period against rent collected in the same period.

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 
Singer Capital Markets                             Tel: [phone] 
 James Maxwell, Asha Chotai 
Panmure Gordon (UK) Limited                        Tel: [phone] 
 Chloe Ponsonby (Corporate Broking), Alex Collins 
 (Corporate Finance) 
G10 Capital Limited (part of the IQEQ Group        Tel: [phone] 
 as AIFM) 
 Paul Cowland 
KTZ Communications 
 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 ("PRS") and to provide shareholders with an attractive level of income together with the potential for capital and income growth. The Company is investing over GBP1bn in a portfolio of high quality homes for private rental across the regions, having raised a total of GBP0.56bn (gross) through its Initial Public Offering, on 31 May 2017 and subsequent fundraisings in February 2018 and September 2021. The UK Government's Homes England has supported the Company with direct investments. On 2 March 2021, the Company transferred its entire issued share capital to the premium listing segment of the Official List of the FCA and to the London Stock Exchange's premium segment of the Main Market. On 16 July 2021, the Company announced the completion of the 4,000(th) new rental home for its portfolio, which the Company believes is the largest build-to-rent single family rental portfolio in the UK.

LEI: 21380037Q91HU97WZX58

About Sigma Capital Group Limited (formerly Sigma Capital Group plc)

www.sigmacapital.co.uk

Sigma Capital Group Limited ("Sigma") is a PRS, residential development, and urban regeneration specialist, with offices in Edinburgh, Manchester and London, and is part of PineBridge Investments, a private, global asset manager with $133bn in assets under management as at March 2021.

Sigma's principal focus is on the delivery of large scale housing schemes for the private rented sector. The business 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 property 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 business'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 Sigma Capital Group Limited 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 AIFM 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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTGPUCWCUPPPUG

(END) Dow Jones Newswires

April 12, 2022 02:01 ET (06:01 GMT)