Last checked at 
18 Mar 2021 09:50
18 March 2021
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the "Group")
Portfolio Update
The Board of Triple Point Social Housing REIT plc (ticker: SOHO) notes the Regulatory Notices published on 18 March 2021 by the Regulator of Social Housing (the "Regulator") in relation to Hilldale Housing Association ("Hilldale") and Pivotal Housing Association ("Pivotal"). This follows the Regulator's ongoing review of the specialised supported housing sector which the Board welcomes, bringing as it does, higher levels of accountability and transparency.
The Group's investment manager, Triple Point Investment Management LLP (the "Manager"), has liaised with the Group's independent valuer, Jones Lang LaSalle Limited, who has advised that there should be no material impact on the value of the Group's property portfolio as a result of the Regulatory Notices.
Hilldale Housing Association
Hilldale, a registered provider focused on the supported housing sector, has recently been subject to a review by the Regulator, resulting in Hilldale being deemed non-compliant with regards to elements of the Governance and Financial Viability Standard. As Hilldale had fewer than 1,000 social housing units under management based on the most recent statistical data return, no formal rating was given by the Regulator.
The Group has 30 assets leased to Hilldale, the aggregate value of which, as at 31 December 2020, was £52.9 million. Hilldale represents 9.3 per cent of the Group's current portfolio value and 9.5 per cent of the Group's rent roll. All rent payable under the leases with the Group continues to be paid in full.
The Manager has an established relationship with Hilldale and is in regular dialogue with them, particularly with regard to the regulatory review. The Regulator notes that Hilldale has started to improve its governance and is in the process of agreeing a new business plan and risk control framework and has committed to working with the Regulator to address the points outlined in the notice.
Pivotal Housing Association
Pivotal, a registered provider focused on the supported housing sector, has recently been subject to a review by the Regulator, resulting in Pivotal being deemed non-compliant with regards to elements of the Governance and Financial Viability Standard. As Pivotal had fewer than 1,000 social housing units under management based on the most recent statistical data return, no formal rating was given by the Regulator.
The Group has two assets leased to Pivotal, the aggregate value of which, as at 31 December 2020, was £3.7 million. Pivotal represents 0.6 per cent of the Group's current portfolio value and 0.7 per cent of the Group's rent roll. All rent payable under the leases with the Group continues to be paid in full.
The Manager has an established relationship with Pivotal and is in regular dialogue with them, particularly with regard to the regulatory review. The Group notes Pivotal has ongoing engagement with the Regulator and is currently taking steps to address the Regulator's concerns.
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
Triple Point Investment Management LLP (Investment Manager) | Tel: 020 7201 8989 |
Ben Beaton | |
Max Shenkman | |
Isobel Gunn-Brown | |
Akur Capital (Joint Financial Adviser) | Tel: 020 7493 3631 |
Tom Frost | |
Anthony Richardson | |
Siobhan Sergeant | |
Stifel (Joint Financial Adviser and Corporate Broker) | Tel: 020 7710 7600 |
Mark Young | |
Mark Bloomfield | |
Rajpal Padam |
The Company's LEI is 213800BERVBS2HFTBC58.
Further information on the Company can be found on its website at www.triplepointreit.com.
NOTES:
The Company invests in primarily newly developed social housing assets in the UK, with a particular focus on supported housing. The assets within the portfolio are subject to inflation-linked, long-term (typically from 20 years to 30 years), Fully Repairing and Insuring ("FRI") leases with Approved Providers (being Housing Associations, Local Authorities or other regulated organisations in receipt of direct payment from local government). The portfolio comprises investments into properties which are already subject to an FRI lease with an Approved Provider, as well as forward funding of pre-let developments but does not include any direct development or speculative development.
There is increasing political pressure and social need to increase housing supply across the UK which is creating opportunities for private sector investors to help deliver this housing. The Group's ability to provide forward funding for new developments not only enables the Company to secure fit for purpose, modern assets for its portfolio but also addresses the chronic undersupply of suitable supported housing properties in the UK at sustainable rents as well as delivering returns to investors.
The Company was admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange on 8 August 2017 and was admitted to the premium segment of the Official List of the Financial Conduct Authority and migrated to trading on the premium segment of the Main Market on 27 March 2018. The Company operates as a UK Real Estate Investment Trust ("REIT") and is a constituent of the FTSE EPRA/NAREIT index.
Additional information on regulation
The Specialised Supported Housing sector is regulated by the Regulator who carries out assessments on registered providers either through a scheduled In-depth assessment ("IDA") or reactive engagement. When a registered provider passes the 1,000-unit threshold, it automatically becomes subject to a detailed IDA by the Regulator. The IDA assesses compliance with the requirements of the Governance and Financial Viability Standard. The outcome of an IDA results in the Regulator publishing a formal grading (V 1-4 for Viability and G 1-4 for Governance, where V1-2 and G1-2 are considered "compliant" ratings, and V3-4 and G3-4 are considered "non-compliant" ratings), known as a regulatory judgement.