TIDMPRSR
RNS Number : 8894V
PRS REIT PLC (The)
12 April 2023
PRSR.L
The PRS REIT plc
("the PRS REIT" or "the Company")
5,000(th) Build-to-Rent Home Completed
Consolidating the Portfolio's Position as the
Largest Build-to-Rent, Single-family Portfolio in the UK
&
Q3 Trading Update
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 announce the completion of its
5,000(th) build-to-rent home and to provide a trading update for
the third quarter of its financial year ending 30 June 2023.
At At At
31 March 31 December 31 March
2023 2022 2022
--------------------------------- ---------- ------------- ----------
Number of completed homes 5,010 4,913 4,616
Estimated rental value GBP52.7m GBP50.7m GBP45.5m
("ERV") per annum
--------------------------------- ---------- ------------- ----------
Number of contracted homes 516 613 822
ERV per annum GBP5.2m GBP6.6m GBP6.2m
Completed and contracted
sites 71 71 67
ERV of completed and contracted GBP57.9m GBP57.3m GBP51.7m
sites
--------------------------------- ---------- ------------- ----------
Rent collected in period
relative to rent invoiced
for the same period 101% 98% 99%
--------------------------------- ---------- ------------- ----------
Like-for-like rental growth
on stabilised sites in
the preceding 12 months 5.7% 5.7% 4.8%
--------------------------------- ---------- ------------- ----------
Delivery - Milestone of 5,000th completed home reached
The Company is delighted to report that its 5,000(th) rental
home has now been built. This has helped to take the total number
of completed homes in the PRS REIT's portfolio at 31 March 2023 to
5,010. A further 516 homes with an estimated rental value ("ERV")
of GBP5.2m were under way at this date. The delivery programme is
now approximately 89% complete.
The estimated rental value ("ERV") of the 5,010 completed homes
in the portfolio is GBP52.7m per annum, 16% higher than a year ago
(31 March 2022: 4,616 homes with an ERV of GBP45.5m per annum).
Once the delivery programme has been completed, the number of homes
in the portfolio will increase to approximately 5,600 homes with an
ERV of c.GBP58m per annum.
The 5,000(th) home is a three-bedroom house located on the
Company's Brookfield Vale site in Blackburn, Lancashire, comprising
154 high-quality two, three and four-bedroom rental homes. The
development offers views of the Pennines and is one mile from
Blackburn town centre, as well as being close to good schools and
public transport links. As with all the Company's sites, it is
managed under the award-winning rental brand, Simple Life, which
aims to set a new, higher standard of customer care in the Private
Rented Sector.
In order to mark the PRS REIT's 5,000th home, the Company is
supporting Speed of Sight, the Lancashire-based charity established
by professional racing driver, Mike Newman, who was born without
sight and is the fastest blind man on land and water, to provide
driving experiences to blind and disabled people. The Company
became involved with Speed of Sight after it was nominated by a
resident in the Company's 2021 12 Days of Christmas campaign.
Asset performance
The performance of the portfolio remains extremely strong.
Occupancy at 31 March 2023 stood at 97%, with 4,860 of the 5,010
completed homes occupied. A further 65 homes were reserved at that
date for applicants who had passed referencing and paid rental
deposits, giving an occupancy rate of 98%. Like-for-like rental
growth on stabilised sites was strong at 5.7% on an annualised
basis.
Affordability remains strong, with average rent as a proportion
of household income at c.25%, which is significantly less than Home
England's limit of 35%.
Rent collection (defined as rent collected in the period
relative to rent invoiced in the same period) was strong at 101%.
It should be noted that the rent collection figures in the table
above for Q3 and Q2 reflect seasonality and that the aggregate
percentage for this six-month period is 100%. Total arrears
continues to be low at GBP0.7m at 31 March 2023 (31 March:
GBP0.5m), which is c.1% of annualised ERV on completed units.
Steve Smith, Non-executive Chairman of The PRS REIT plc,
said:
"The completion of the 5,000(th) rental home marks a significant
milestone for The PRS REIT and demonstrates our success in building
the largest portfolio of high-quality, build-to-rent, single-family
rental homes in the UK over the last six years. We are in the final
phase of the current delivery programme and expect to complete at
around 5,600 homes with an estimated rental value of c.GBP58m per
annum once fully let.
"Demand for our homes remains high, as our consistently strong
performance measures, including occupancy levels and rent
collection, show. This reflects the desirable nature of our houses
- built to high-quality specifications and located close to good
schools and public transport links - as well as their affordability
for families. Average rent is about 25% of a household's gross
income.
"We would like to thank all who have helped us to reach this
important landmark of 5,000 completed homes - including investors,
housebuilding partners, and Homes England. We are pleased to be
meeting an important societal need and playing a part in solving
the UK's urgent requirement for single-family rental homes."
For further information, please contact:
The PRS REIT plc Tel: 020 3178 6378
Steve Smith, Non-executive Chairman (c/o KTZ Communications)
Sigma PRS Management Ltd Tel: 0333 999 9926
Graham Barnet, Mike McGill
Singer Capital Markets Tel: 020 7496 3000
James Maxwell, Asha Chotai (Investment
Banking)
Alan Geeves, James Waterlow, Sam Greatrex
(Sales)
Panmure Gordon (UK) Limited Tel: 020 7886 2500
Alex Collins (Investment Banking)
Tom Scrivens (Corporate Broking)
G10 Capital Limited (part of IQ-EQ) Tel: 0207 397 5450
Paul Cowland
KTZ Communications Tel: 020 3178 6378
Katie Tzouliadis, Robert Morton
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 has
investment of 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. Now comprising over 5,000
build-to-rent homes, the Company believes its portfolio 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. 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 excellent property procurement and
management 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
manages the rental of completed homes through its award-winning
rental brand 'Simple Life'. The Company's subsidiary, Sigma PRS
Management Ltd, is Investment Adviser to The PRS REIT plc.
About Sigma PRS Management Ltd
Sigma PRS Management Ltd 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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