Share Name Share Symbol Market Type Share ISIN Share Description
Sigma Capital Group Plc LSE:SGM London Ordinary Share GB0004225073 ORD 1P
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Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Nonequity Investment Instruments 12.5 12.2 12.7 8.5 96

Sigma Capital Group PLC Re: The PRS REIT plc - Fourth Quarter Update

04/07/2019 7:00am

UK Regulatory (RNS & others)

Sigma Capital (LSE:SGM)
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6 Months : From Apr 2019 to Oct 2019

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RNS Number : 4283E

Sigma Capital Group PLC

04 July 2019

4 July 2019




The private rented sector ("PRS") and urban regeneration specialist

Re: The PRS REIT plc - Fourth Quarter Update

Sigma, the private rented sector, residential development and urban regeneration specialist, notes that The PRS REIT plc ("REIT") has issued an update for the final three months of the financial year ended 30 June 2019, which also provides an overview of the REIT's progress over its first two years since its inception.

Sigma's subsidiary, Sigma PRS Management Limited, is Investment Adviser to the REIT, sourcing investments, managing assets and providing advice on a day-to-day basis.

A copy of the announcement can be found below, and via the link below.


Sigma Capital Group    Graham Barnet, Chief Executive    T: 020 3178 6378 
 plc                                                      (today) 
                       Malcolm Briselden, Finance        T: 0333 999 9926 
KTZ Communications     Katie Tzouliadis, Dan Mahoney     T: 020 3178 6378 
N+1 Singer             James Maxwell, James Moat,        T: 020 7496 3000 
 (NOMAD and Broker)     Ben Farrow 

4 July 2019


The PRS REIT plc

("Company" or "PRS REIT")

Fourth Quarter Update

PRS REIT, the closed-ended real estate investment trust established to invest in new build homes in the private rented sector ("PRS"), is pleased to provide an update for the final three months of the financial year ended 30 June 2019, and an overview of the Company's progress over its first two years since its inception.

The First Two Years

Since the launch of PRS REIT on 31 May 2017 up to 30 June 2019, 1,173 new homes have been delivered, generating a rental income stream of GBP10.7m per annum. Built for the private rental market and designed mainly for families, the homes are located across 21 fully or partially completed sites in Greater Manchester, Merseyside, the Midlands and Yorkshire. The average monthly rental across these properties is GBP760 per calendar month, and when a vacancy has arisen, the re-letting period has averaged 6.1 days.

At the end of June 2019, the close of the Company's financial year, the number of new homes under construction stood at 3,196 across 37 sites. Once this tranche of homes has been completed and let, the Company's annual rental income will rise to approximately GBP41m (on 4,369 homes). The new homes coming through will further diversify the geographic spread of the Company's portfolio, with the units located across 54 sites of varying sizes across the major regions in England.

Gross yields and cost management to date are in line with management expectations. As at 30 June 2019, the average gross yield on developed assets was 6.2%.

Progress over the Fourth Quarter

The table below summarises the Company's progress over the fourth quarter ended 30 June 2019.

                                         At 30 June   At 31 March 
                                               2019          2019 
  Number of completed PRS units               1,173           944 
  Estimated rental value ("ERV") of 
   completed homes per annum               GBP10.7m       GBP8.6m 
 -------------------------------------  -----------  ------------ 
  Number of completed and contracted* 
   sites                                         54            49 
  Number of completed and contracted* 
   units                                      4,369         3,951 
  Gross development cost ("GDC") of 
   completed and contracted* sites          GBP661m       GBP603m 
  ERV of completed and contracted* 
   sites per annum                           GBP41m        GBP37m 
 -------------------------------------  -----------  ------------ 

Development Sites Acquired

During the last quarter of the financial year, the Company purchased five development sites (one through a forward-purchase agreement with Sigma Capital Group plc ("Sigma")), which will add a further 437 new homes once fully developed for a total GDC of GBP63.7m. The ERV of these new homes is GBP3.9m per annum. These newly acquired sites are located in the North West, North East and West Midlands.

The development site in the North East is the Company's first site in the region, and was acquired in conjunction with Galliford Try. Located in Middlesbrough, it will comprise c.80 homes when completed. The Company expects to expand its presence in this region, and a further site is currently under review.

Completed Sites Acquired

In the period, the Company also acquired a newly-completed PRS site in Telford, Shropshire, from Sigma for a total consideration of GBP12.7m, following an independent valuation. The site comprises 78 homes, with an expected rental income of GBP0.7m per annum.

Construction Resource

The Company's Investment Adviser, Sigma PRS Management, part of Sigma, is seeking to add additional construction resource by developing relationships with high quality, regional housebuilders. This will complement the existing core delivery partners and extend the portfolio's geographic spread. One site has been agreed with a proposed new partner, and additional sites are under review.

Debt Facilities

As previously announced, a further GBP200m of debt facilities was agreed in May 2019 on attractive terms with Scottish Widows and Lloyds Bank, bringing the Company's total gross balance of deployable funds to GBP900m. The Company's total debt facilities are fully committed* to development sites.


The total dividend target for FY 2019 remains 5p per share. This would bring the total dividend for the first two years to 10p per share, the Company's original target at IPO. Details regarding the payment of the Company's quarterly dividend are expected to be declared at the end of July 2019.

The annual dividend targets for FY 2020 and FY 2021 remain at 5p per share respectively, with the Company targeting a stabilised dividend of 5.5% from 2022(1) .


The Company has progressed in line with management expectations during the fourth quarter of the financial year. There are 37 sites are currently under construction across England, and the volume of completions continues to grow. Completed assets are performing well and market demand for the Company's homes remains strong.

The PRS REIT is well-positioned at the start of the new financial year, with increased construction resource, identified development opportunities, including in new geographic regions, and stable, well-controlled costs.

The Company expects to report on audited full year results in late September.

(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.


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). 
Committed   refers to development sites that have been approved 
             or are under formal appraisal by the Investment Adviser, 
             and where planning consent is being sought, and/or are 
             in the process of being acquired. 

This announcement is released by The PRS REIT plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For further information, please contact:

The PRS REIT plc                        Tel: 020 3178 6378 (c/o KTZ Communications) 
 Steve Smith, Non-executive Chairman 
Sigma PRS Management Limited            Tel: 0333 999 9926 
 Graham Barnet 
N+1 Singer                              Tel: 020 7496 3000 
 James Maxwell, James Moat, Ben Farrow 
Stifel                                  Tel: 020 7710 7600 
 Mark Young, Neil Winward, Gaudi Le 
G10 Capital Limited (AIFM)              Tel: 020 3696 1302 
 Gerhard Grueter, Anthony Wood, Gaia 
KTZ Communications                      Tel: 020 3178 6378 
 Katie Tzouliadis, Dan Mahoney 


About The PRS REIT plc


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


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 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 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 Adviser is an appointed representative (reference number: 776293) of the AIFM.

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 or visit



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July 04, 2019 02:00 ET (06:00 GMT)

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