PRS REIT PLC (The) Second Quarter Update (6612Z)

TIDMPRSR

RNS Number : 6612Z

PRS REIT PLC (The)

14 January 2020

14 January 2020

PRSR.L

The PRS REIT plc

("Company" or "PRS REIT")

Second 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 second quarter of its financial year, comprising the three months to 31 December 2019.

 
                                     At 31 Dec       At 30   At 31 Dec 
                                          2019        Sept        2018 
                                                      2019 
 Completed homes 
 Total number of completed homes         1,617       1,361         775 
 Rental income per annum              GBP14.9m    GBP12.3m     GBP7.0m 
 
 Contracted homes 
 Total number of contracted homes        3,328       3,422       2,800 
 Estimated rental value ("ERV")       GBP32.7m    GBP33.7m    GBP26.2m 
  per annum 
 
 Total number of sites (completed 
  and contracted)                           62          60          43 
 Gross development cost              GBP771.3m   GBP740.0m   GBP530.0m 
 ERV per annum                        GBP47.6m    GBP46.0m    GBP33.2m 
 

Over the course of the second quarter of the financial year, the PRS REIT continued to make good progress in line with management expectations. An additional 256 high quality rental homes were completed in the period (First quarter ended 30 September 2019: 188), bringing the PRS REIT's total portfolio to 1,617 homes by the end of the period (30 September 2019: 1,361). These new homes will contribute GBP2.6m per annum to the Company's rental income, increasing its annualised rental income to GBP14.9m (30 September 2019: GBP12.3m annualised). Demand remains strong and the REIT's homes continue to rent well, with occupancy at 98%.

The total number of contracted sites now stands at 42 sites, with just over 3,300 homes under development across them at the end of the quarter. When complete, these homes are expected to generate an annualised gross rent of around GBP32.7m, lifting the PRS REIT's total ERV to GBP47.6m per annum (30 September 2019: GBP46.0m).

At the end of the quarter, the bulk of the PRS REIT's net funding (c. GBP900m gross) had been contracted, with the balance expected to be fully deployed by the end of the current financial quarter. The pace of housing delivery continues to increase, and the Company's 2,000(th) home is expected to be completed around the end of the current quarter.

An interim dividend payment of 1.0 pence per ordinary share in respect of the first quarter of the financial year was paid on 29 November 2019, and the Company continues to target a total dividend of 5.0 pence per ordinary share for the current financial year(1) .

(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, Malcolm Briselden 
 
N+1 Singer                            Tel: [phone] 
 James Maxwell, James Moat, Ben 
 Farrow 
 
G10 Capital Limited (part of the      Tel: [phone] 
 IQEQ Group 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 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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January 14, 2020 02:00 ET (07:00 GMT)