Last checked at 
11 Jan 2023 07:00
PRSR.L
The PRS REIT plc
("the PRS REIT" or "the Company")
Second Quarter 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 provide an update on performance over October to December 2022, making up the second quarter of the financial year ending 30 June 2023.
| At 31 Dec 2022 | At 30 Sept 2022 | At 31 Dec 2021 |
Number of completed homes | 4,913 | 4,856 | 4,489 |
Estimated rental value ("ERV") per annum | £50.7m | £49.4m | £43.5m |
Number of contracted homes | 613 | 670 | 949 |
ERV per annum | £6.6m | £7.3m | £8.2m |
Completed and contracted sites | 71 | 70 | 67 |
ERV of completed and contracted sites | £57.3m | £56.7m | £51.7m |
Rent collected | 98% | 99% | 99% |
During the quarter, which included the Christmas period, 57 new rental homes were added to the portfolio. This took the number of completed homes added to the Company's portfolio during the first half of the financial year to 127 and the total number of completed homes in the portfolio to 4,913 as at 31 December 2022. The delivery programme is now at a very mature stage, approximately 85% complete.
The estimated rental value ("ERV") of the 4,913 completed homes in the portfolio is £50.7m per annum, some 17% higher than a year ago (31 December 2021: 4,489 homes with an ERV of £43.5m per annum).
A further 613 homes were contracted as at 31 December 2022, and are at varying stages of the construction process. Once these new homes have been completed, the ERV of the portfolio is expected to total c.£57.3m per annum.
Rental demand for the Company's homes remains extremely strong. Occupancy at 31 December 2022 stood at 97% with 4,788 of the 4,913 completed homes occupied. A further 44 homes were reserved for applicants who had passed referencing and paid rental deposits, giving an occupancy rate of 98%. Like-for-like rental growth on an annualised basis was 5.7%.
Rent collection (defined as rent collected in the period relative to rent invoiced in the same period) was strong at 98%. Total arrears remained low at £0.7m at 31 December 2022 (31 December 2021: £0.4m), representing c.1% of annualised ERV on completed units. Affordability remains strong, with average rent as a proportion of household income at c.25%, which is significantly ahead of Home England's 35% target.
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) Paul Cowland | Tel: 0207 397 5450 |
KTZ Communications Katie Tzouliadis, 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).