Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.
To provide investors with income and capital growth via investment in newly constructed residential private rented sector sites of multiple units in the UK, to be let on Assured Shorthold Tenancies to qualifying tenants.
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Carmzy, some would think your description of the current government is still complimentary, given how shockingly poor their results, behaviour and rhetoric has been for a good while. Thankfully, PRSR have different timeframes and factors that can hopefully carry them through any remaining mess that Ministers may unleash before the forthcoming election
Decided to come in on this one as it seems to have taken a beating from interest rates (as so many reits have) and things may well be turning on that front. Then again with the current batch of hopeless incompetents in government there's always a risk they'll send the economy nosediving yet again... fingers crossed a good long term investment
Not a bad director's buy, adding to the existing holding. Director signalling quiet confidence in PRSR
Let us see what progress PRSR makes with growing its portfolio and profitability in 2024 and how the market may reflect ( or not) its prospects in the share price
Good day. SP up 2% PLUS ex div bonus today ! Wow!
And yet not quite back to the same price as 4 long months ago, where you stated the price (quote) "was in the doldrums".
So why the "wow" today?
You do continue to talk some carp on here.
And up another 8% today. Wow!
The sp could have a good way to run (up) in the long-run. Let us see how they manage additions to their portfolio, tenant satisfaction, rent collections and any new costs arising from some risks materialising. Not quite sure what they can do for the market to re-rate them significantly higher in the short-term?
Markets seemed to like results SP up 5.7% @70.1p
I'm in for a first nibble at just under 70p. Let us see how much rental market fundamentals and management discipline trump market sentiment
I’ve topped and here’s why. Yesterday’s RNS.
82% debt is fixed at an average of 3.8% (this should be total interest/total debt but could be the average of each tranche’s interest rate which isn’t correct). So that’s £352 at 3.8% = £13.38m, that leaves 18% floating (say SONIA at 5%), £77m at 5% = £3.85m, so total interest payments are about £17.23m, 1.7% of NAV (£999m Dec 2022). At 10% this number would be £21.08, giving a rate of 5.2% of debt and 2.1% of NAV, not too bad and certainly doesn’t justify the discount.
The reported net initial valuation yield (NIY) is reported as 4.3% (of NAV?) so that’s £43m. If this can be counted as taxable profits (which it isn’t and is probably an over estimate) that gives a possible dividend of 7p, assuming there are 550m shares issued and using 90% of £43m the REIT dividend rules. As new homes have been constructed and rented out this year the NAV has probably increased and the NIY would have too. So I’m expecting an increase in the target dividend next financial year.
At the moment this is yielding a below inflation 5% but I think this is a really well run business offering affordable rented accommodation in an environment when it’s getting increasingly difficult to get a mortgage and there isn’t enough housing stock. I think that over time the discount will get to a premium, the dividend will keep increasing. Also, inflation will start to slow and eventually get close to the magical 2% seeing a reduction in the base rate. Worst case: wind up and sell the homes at a profit.
IMO, DYOR.
SP still in the doldrums here. Well below initial IPO years ago and lower than placings since then.
Do the BOD expect a pay rise I wonder?
"pretax profit plunged to GBP14.7 million in the recent half-year from GBP38.6 million a year ago.". Alternatively, PRSR are still making significant profits in difficult times.
"gain from fair value adjustment on investment property plunged to GBP5.8 million from GBP31.1 million". Given that the blame for wide discounts is the markets expectation that NAV will decrease, surely this is good news. Again the company are still making a profit on the property portfolio.
The best news is: "Rental income grew 22% to GBP24.2 million from GBP19.9 million.". That's why I'm invested in this trust.
(Alliance News) - PRS REIT PLC on Tuesday reported a lower profit in the six months to December 31, as investment gains fell.
The Manchester-based real estate investment trust focused on private rental sector in UK said pretax profit plunged to GBP14.7 million in the recent half-year from GBP38.6 million a year ago. Rental income grew 22% to GBP24.2 million from GBP19.9 million.
Meanwhile, gain from fair value adjustment on investment property plunged to GBP5.8 million from GBP31.1 million.
Non-recovery property costs outpaced revenue growth, widening 30% to GBP4.5 million from GBP3.5 million. Total expenses increased 7.4% to GBP4.1 million from GBP3.8 million.
PRS REIT kept its dividend target for the financial year ending June 30 at 4.0 pence per share, unchanged from financial 2022 and financial 2021.
The company noted that between January 1 and March 10, 68 new rental homes with an estimated rental value of around GBP800,000 per year were added to its portfolio, taking the total portfolio to 4,981 completed homes with an estimated rental value of GBP57.9 million per year.
Looking ahead, Chair Steve Smith said: "Market factors remain strongly in our favour, and our sector - single family rental - is very robust. This reflects lack of supply, strong rental growth, and the benefit of multiple individual counterparties, which reduces concentration risk. Our homes are affordable for ordinary families up and down the country, and we remain very confident of prospects for the PRS REIT."
Further, the company said: "We expect cost-of-living increases and higher interest rates to boost demand as mortgage affordability pressures rise, especially for first-time buyers."
PRS REIT shares were marginally higher at 80.22 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News reporter
Insider buys: https://www.sharecast.com/news/dealings-round-up/director-dealings-prs-reit-non-exec-makes-pound71k-investment--11021876.html
Broker notes:
https://www.sharecast.com/equity/PRS_Reit_The/broker-views
Based on this article and a quick look at the books.
Didn't bother waiting on a lower entry.
Trading a little above NAV which is interesting. Build to rent is the next growing sector due spiralling house prices and build costs.
Good article. Read in incognito mode if you get a registry/ paywall.
https://www.housingtoday.co.uk/news/prs-reit-profit-up-90/5116665.article
I think this will be a reasonable earner hopefully see an uplift in dividends at some point.
Hi all, just giving a second and final push to my blog on PRS REIT, which I am a shareholder in. The blog can be found here: https://tbifund.wordpress.com/2022/01/01/the-prs-reit-prsr-ln-safe-as-houses/
Happy New Year all! I've just written a blog on PRS REIT, which I am a shareholder in, that may be of interest to you. The blog can be read here: https://tbifund.wordpress.com/2022/01/01/the-prs-reit-prsr-ln-safe-as-houses/
Have Investco just bought about £80m worth of shares? Surely good news which will see the SP rise.
how the the share price plummets then an issue comes along.
I've decided to dip in here - Decent discount to NAV and it would appear steady eddie income going forward
I'm 7 tranches in on this REIT with a holding average of just under @80p.
I do believe it comes good with 5.5pps divi in 12-15 months time when 100% of properties are completed and rented and probably a rise between then and now also (about 60% of portfolio completed now if you sww RNS today).
I don't see any reason why its share price doesn't return to above @90p where it was pre-Covid.
The main reason I popped in here was because another poster told me, some months ago now on ii, that there were all kinds of allegations of financial misconduct alleged on here against PRSR's directors. If so, they're not posted on this board, clearly! Did you come across anything?
I would suggest their announced intention to move to the premium market is not the act of directors with something to hide, as they will be open to even more scrutiny.
I'm not sure why the price is still so low (but still that horrible spread). Yes, some slow down in completions and an overly cautious reduced divi, but ... Family rental homes ... bad economy = unemployment = housing benefit = rent paid. I reckon the market has priced in far more risk than there actually is here.
Good luck!
Blinkin 'eck it's a bit lonely in 'ere.
Second tranche purchased today.
To add to my list of (commercial) REITs I bought my first tranche in PRSR today. A Private Rented Sector buy & build to rent REIT with thousands of individual tenants, a 5p dividend for the current year and 5.5p targeted for next year. At the current asking price of ~90p that's a dividend yield of 5.5%, growing to 6.1% next year.
More info here if anyone is interested https://www.theprsreit.com/
Interestingly, today's bid/ask spread was 88/90 (no change) with my buy going through at just under 89p. However, it's showing as a Sell on LSE and HL websites. So are all the other trades within a smidgin of my trade. I assume this is because the trade price was below the mid point of the bid/ask spread. ...So be careful if looking at the number of 'buys' or 'sells'.