Last checked at 
7 Feb 2023 07:00
PRSR.L
The PRS REIT plc
("the Company" or "the PRS REIT")
Update on Net Asset Value and Dividend Declaration
The PRS REIT, the closed-ended real estate investment trust that invests in high-quality, new build, single family homes for the private rented sector ("PRS"), is pleased to provide an update on the net asset value ("NAV") of its portfolio and to declare an interim dividend in respect of the second quarter of the current financial year ending 30 June 2023.
Net Asset Value
As at 31 December 2022, the Company's unaudited NAV on an EPRA NTA and IFRS basis was 117.1p per ordinary share. This is an increase of 0.7p on NAV of 116.4p (audited) as at 30 June 2022 and is 12.8p higher than at the same point in the prior year (31 December 2021: 104.3p (unaudited)).
The rise in NAV principally reflects strong estimated rental value ("ERV") growth of 5% since 30 June 2022, underpinned by high demand for the Company's homes. As previously reported, like-for-like rental growth on stabilised sites on an annualised basis to 31 December 2022 was 5.7% (year ended 30 June 2022: 5.1%), with rental growth on lets to new tenants averaging just above 10% and marginally below 5% on renewals with existing tenants.
Rental growth remains well-supported by high levels of rent collection (Q2 FY2023: 98%), very modest arrears (Q2 FY2023: £0.7m), and an affordability ratio on homes of approximately 25%, which is well below Home England's upper limit of average rent as a proportion of gross household income of 35%.
The average net investment yield on the portfolio was at 4.3% at 31 December 2022 compared to 4.125% at 30 June 2022 (31 December 2021: 4.25%). However, strong ERV growth has more than offset this softening. It is also worth noting that against market-wide reductions in property investment values, the Single Family Rental sub-sector has delivered the strongest performance. Several factors account for this; high and increasing demand for this product, strong rental growth, which also reflects lack of supply, and the robust nature of portfolios underpinned by multiple individual covenants.
Valuations were completed by Savills as an independent third-party valuer.
Dividend
The Board is also pleased to declare an interim dividend of 1.0p per ordinary share for the three months ended 31 December 2022, the second quarter of the current financial year.
The dividend, which is 75% Property Income Distribution ("PID") and 25% Non-PID, will be paid to all shareholders on the register as at 17 February 2023 and is payable on 3 March 2023. The ex-dividend date is 16 February 2023.
For further information, please contact:
The PRS REIT plc Steve Smith, Non-executive Chairman
| Tel: 020 3178 6378 (c/o KTZ Communications) |
Sigma PRS Management Ltd Graham Barnet, Mike McGill
| Tel: 0333 999 9926 |
Singer Capital Markets James Maxwell, Asha Chotai (Investment Banking) Alan Geeves, James Waterlow, Sam Greatrex (Sales)
| Tel: 020 7496 3000
|
Panmure Gordon (UK) Limited Chloe Ponsonby, Alex Collins (Investment Banking)
| Tel: 020 7886 2500 |
G10 Capital Limited, part of IQ-EQ (AIFM) Paul Cowland | Tel: 0207 397 5450 |
KTZ Communications Katie Tzouliadis, Robert Morton, Dan Mahoney | Tel: 020 3178 6378 |
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 is investing over £1bn in a portfolio of high-quality homes for private rental across the regions, having raised a total of £0.56bn (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. Approaching its 5,000th new rental home, 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).