PRS REIT PLC (The) Second Quarter Update and Dividend Declaration (7378Y)

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RNS Number : 7378Y

PRS REIT PLC (The)

18 January 2022

18 January 2022

PRSR.L

The PRS REIT plc

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

Second Quarter Update and

Dividend Declaration

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 second financial quarter ended 31 December 2021 and to declare the dividend payment relating to that period.

Second quarter performance

 
                                                At         At             At 
                                       31 Dec 2021    30 Sept    31 Dec 2020 
                                                         2021 
-----------------------------------  -------------  ---------  ------------- 
 Number of completed homes                   4,489      4,291          3,163 
 Estimated rental value ("ERV")           GBP43.5m   GBP41.1m       GBP29.4m 
  per annum 
-----------------------------------  -------------  ---------  ------------- 
 Number of contracted homes                    949        764          1,963 
 ERV per annum                             GBP8.2m    GBP7.0m       GBP19.4m 
 Completed and contracted sites                 67         64             65 
 ERV of completed and contracted          GBP51.7m   GBP48.1m       GBP48.8m 
  sites 
-----------------------------------  -------------  ---------  ------------- 
 Rent collected in period relative 
  to rent invoiced for the same 
  period                                       99%        99%           100% 
-----------------------------------  -------------  ---------  ------------- 
 

During the quarter, which included the Christmas period, 198 new rental homes were added to the portfolio. This took the total number of completed homes added to the Company's portfolio during the first half of the financial year to 505 . The number of new additions reflects the mature stage of the delivery programme, which is around 80% complete. This number was also affected by a combination of coronavirus-related staffing absences (especially after the emergence of the Omicron variant) and materials availability attributable to supply chain disruption.

The new additions took the total number of completed homes in the portfolio to 4,489 at 31 December 2021, up by 42% year-on-year, with the estimated rental value ("ERV") on completed homes 48% higher at GBP43.5m per annum (31 December 2020: 3,163 homes with an ERV of GBP29.4m per annum).

A further 949 homes with an ERV of GBP8.2m per annum were contracted as at 31 December 2021, and are at varying stages of the construction process. This number includes the 383 homes currently under way across the three sites acquired in the quarter, which have a combined gross development cost of c.GBP60.3m. These site acquisitions saw the Company fully commit the proceeds of its September 2021 equity placing.

The Company plans to acquire at least two further sites during the first half of calendar 2022, utilising debt funding, and now anticipates delivering its 5,000(th) completed home towards the end of calendar 2022. It continues to target a total portfolio of 5,700 homes, with an ERV approaching GBP55m per annum.

Demand for the Company's homes remains strong. Of the 4,489 completed homes, 4,411 (98%) were occupied at 31 December 2021, and a further 37 homes were reserved for qualified applicants with rental deposits paid.

Rent collection was also strong at 99% (relative to rent invoiced in the period). Total arrears remained low at GBP0.4m at 31 December 2021 (31 December 2020: GBP0.2m), representing less than 1% of annualised ERV on completed units.

Dividend declaration

The Company is pleased to declare an interim quarterly dividend of 1.0 pence per ordinary share in respect of the second quarter of the financial year.

The dividend, which will be a Property Income Distribution ('PID'), will be payable on 11 February 2022 to shareholders on the register on 28 January 2022. The ex-dividend date will be 27 January 2022.

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 Turner 
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 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 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 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 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).

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January 18, 2022 02:00 ET (07:00 GMT)