(Sharecast News) - Triple Point Social Housing reported a robust full-year performance on Friday, despite challenges facing the property sector.
The London-listed real estate investment trust had a portfolio value of £678.4 on an IFRS basis at year-end on 31 December, marking a significant uplift of 14.0% against total invested funds.
EPRA net tangible assets per share increased to 113.76p, rising 4.3% year-on-year.
The firm reported a total annual return, including dividends, of 9.3%, driven by strong rental growth of 6.8% in 2023.
It attributed the growth to government support for residents, with all leases linked to inflation or government policy.
Dividends per share remained in line with targets at 5.46p.
On the operational front, Triple Point noted the rollout of a new risk-sharing clause to improve governance with registered provider partners, and the start of an eco-retrofit pilot programme to upgrade properties to higher energy performance standards.
Looking ahead, Triple Point Social Housing anticipated continued rental growth in 2024, with a significant portion of annual rent increases linked to the September consumer price index figure.
The company said it expected improved rent collection as long-term solutions were implemented with partners.
It said demand for specialised supported housing remained strong, supported by cross-party political backing for its role in providing independent homes to individuals with care needs while allowing them to remain within their communities.
"We are pleased to report a resilient set of results for 2023, despite challenging macroeconomic conditions," said chair Christopher Phillips.
"The group delivered strong rental growth, which along with the continued growth in demand for specialised supported housing, helped to preserve the value of the group's well diversified property portfolio over the last 12 months.
"Triple Point SOHO is well positioned to continue to play a leading role in moving the sector forward through the rollout of our new risk-sharing clause and eco-retrofit pilot programme."
Phillips said those strategic initiatives, along with the firm's "granular approach" to risk management, supported its financial and operational performance and the long-term valuation resilience of its portfolio.
"Looking ahead, we take comfort from the robust fundamentals of the sector which, together with our inflation protection and fully fixed debt, positions the group to continue to deliver shareholder value through the fulfilment of our long term strategy while providing good homes to people with care and support needs throughout the UK."
At 1416 GMT, shares in Triple Point Social Housing REIT were up 2.76% at 59.91p.
Reporting by Josh White for Sharecast.com.
Triple Pnt Soc (SOHO)