SGM.L Regulatory News (SGM)

10 January 2018

PRSR.L

The PRS REIT plc(the "Company" or the "PRS REIT")

Quarterly Update to 31 December 2017

The PRS REIT plc, the closed-ended real estate investment trust established to invest in new build homes in the Private Rented Sector ("PRS"), is pleased to provide an update for the three months to 31 December 2017.

KEY POINTS

· Net proceeds of £250m IPO fundraise, secured on 31 May 2017, have now been fully committed, well ahead of schedule, and will deliver:

- c.1,720 new rental homes in North West, Midlands and South Yorkshire, with total estimated rental value of £15.7m p.a. once fully let.

o 264 of these homes have been completed and let to date

· In the quarter under review, the Initial Development Portfolio acquired, commenced or secured 10 new sites for a total cost of £111.2m; c.795 new rental homes planned

- this is in addition to the existing six sites currently under construction

· Investment Adviser, Sigma PRS Management Limited ("Sigma"), is in advanced discussions with debt providers to secure c. £200m of debt:

- debt facility will be used to deliver an additional c.1,380 new rental homes, on sites already identified

· Prospects remain very positive:

- in excess of £450m of additional new development opportunities have been identified by Sigma over and above those previously reported, reflecting Sigma's broadening relationships

· A further announcement confirming the Company's Net Asset Value as at 31 December 2017 and declaring its maiden dividend will be published at the end of January

CONTINUING STRONG PROGRESS

The PRS REIT continued to make strong progress in the three months to 31 December 2017 and the Board is pleased to confirm that the net proceeds of the £250m fundraising at IPO on 31 May 2017 are now fully committed. This is well ahead of schedule.

The PRS assets which have been acquired, forward-purchased, secured or which are currently under construction total c. 1,720 high quality, rental homes. When fully let, these assets are expected to generate an Estimated Rental Value ("ERV") of £15.7m per annum. Of these, 264 homes have been completed and let to date, generating revenue of £2.4m on an annualised basis. The new homes are designed for families and are located over 24 sites close to good schools across sites in the North West, the Midlands and South Yorkshire.

These assets and the additional new sites secured in the period, make up the majority of the 'First Acquisition Portfolio' and the 'Initial Development Portfolio' referred to in the Company's prospectus dated 4 May 2017. The remaining four PRS sites under construction in the First Acquisition Portfolio are expected to be completed in the second half of 2018 and take the number of sites in this portfolio to eight in total. In the quarter under review, the Initial Development Portfolio acquired, commenced or secured 10 additional new sites, for a total cost of £111.2m. Approximately 795 new homes will be built on these sites, with the delivery timetable currently ahead of schedule. These new sites supplement the existing six sites currently under construction.

The PRS REIT's Investment Advisor, Sigma, is in advanced discussions with major lenders for £200m of debt finance. A further update concerning this will be made in due course. The debt facility will be used to deliver a further c.1,380 PRS homes across sites Sigma has already identified.

The PRS REIT notes that Sigma Capital Group plc (of which Sigma is a subsidiary) continues to expand its geographic reach, construction resource and land access. In particular, Sigma Capital Group plc has plans underway with its key partner, Countryside Properties ("Countryside"), to significantly increase the number of completed PRS units in 2018 and has also entered into a new Framework Agreement with Keepmoat Homes for increased housing delivery in South Yorkshire and East Midlands. This is in addition to the existing and increasing development activity with the Places & Communities Division of ENGIE (formerly part of the Keepmoat Group) in Sheffield and South Yorkshire. Sigma Capital Group plc's relationship with the Homes and Communities Agency ("HCA"), remains highly productive, with both sides committed to the common goal of accelerating new housing delivery in England.

The Company looks forward to announcing its Net Asset Value as at 31 December 2017, and maiden dividend in a separate announcement, expected at the end of January 2018.

Steve Smith, Chairman, commented:

"We are pleased to report that The PRS REIT continues to make strong progress. The net proceeds of our £250m fundraise at IPO at the end of May 2017, are now fully committed and, once construction is complete, will deliver approximately 1,720 new family rental homes across sites in the North West, the Midlands and South Yorkshire.

"We are focused on creating portfolios of high quality homes, mainly catering for middle-income families, and are targeting sites near good schools. There is a dearth of rental housing for families, particularly professionally managed properties, and we are seeing strong demand. What is also important is that our attractive, family-inspired housing helps to foster thriving communities.

"Growth prospects remain very positive, with additional significant funding and development opportunities opening up. We look forward to publishing a further announcement regarding the Company's mid-year NAV and maiden dividend at the end of January."

For further information, please contact:

NOTES TO EDITORS

About The PRS REIT plc(www.theprsreit.com)

The PRS REIT is a closed-ended real estate investment trust established to invest in the Private Rented Sector. The Company raised £250 million gross equity capital in an Initial Public Offering via a Placing Offer for Subscription and Intermediaries Offer. The UK Government's Homes and Communities Agency supported the launch of the PRS REIT with a direct investment of c. £25 million. The proceeds of the fundraising will be invested in completed PRS sites and PRS development sites to achieve the Company's objective of providing shareholders with an attractive level of income together with the potential for capital and income growth.

About Sigma PRS Management Limited

Sigma PRS Management Limited is a wholly owned subsidiary of AIM quoted Sigma Capital Group plc and is the Company's Investment Adviser. It will source investments and manage the assets of The PRS REIT plc and advise the Company on a day-to-day basis in accordance with the Company's Investment Policy.

About Sigma Capital Group plc www.sigmacapital.co.uk

Sigma Capital Group plc is a private rented sector, 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. It 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. Its subsidiary, Sigma PRS Management Limited, has been appointed as Investment Adviser to The PRS REIT plc.