First Quarter Update
17 October 2019
The PRS REIT plc
("Company" or "PRS REIT")
First Quarter Update
The PRS REIT, the closed-ended real estate investment trust established to invest in new build, family homes in the private rented sector ("PRS"), is pleased to provide an update for the first three months of its financial year to 30 June 2020.
At 30 Sept
At 30 June
At 30 Sept
Total number of completed homes
Rental income per annum
Total number of contracted homes
Estimated rental value per annum
Total number of sites (completed or contracted)
Gross development cost ("GDC") of sites
Estimated rental value of homes per annum (completed and contracted)
Uplift on development cost to market value subject to vacant possession (MV-VP)
* This is calculated on a six monthly basis at the financial year end and half-year end when independent valuations are prepared
Progress during the first quarter of the new financial year has continued positively, in line with management expectations, as reported in the Company's full year results announcement published on 25 September 2019, with 188 homes completed in the period. Year-on-year the Company has made significant progress, with the total number of homes completed by the end of the first quarter of the current financial year up by 129% to 1,361 across 26 sites (30 September 2018: 595 across 14 sites). Rental income has increased by 116% to £12.3m per annum (30 September 2018: £5.7m per annum) and demand for the Group's high-quality family homes remains strong.
At the close of the first quarter, a total of 43 sites were under construction (30 September 2018: 19 sites). When construction has fully completed, these sites will deliver a total of 3,796 rental homes for a GDC of £595m (30 September 2018: 2,530 homes for a GDC of £333m). The estimated rental value of both the completed properties and those in progress is £46.0m per annum (2018: £24.1m per annum).
Approximately 91% of the PRS REIT's total net funding (c.£900m gross) has now been deployed, and activity over the coming months is fully focused on deploying the balance of funds, delivering existing development sites and rental income growth as homes complete.
The dividend for the quarter ended 30 September 2019 will be announced at the end of October 2019.
refers to sites under construction (under a design & build contract), which have been purchased by the PRS REIT or the PRS REIT's Investment Adviser (forward sold to the PRS REIT).
For further information, please contact:
The PRS REIT plc
Tel: 020 3178 6378 (c/o KTZ Communications)
Sigma PRS Management Limited
Tel: 0333 999 9926
Tel: 020 7496 3000
G10 Capital Limited (part of the IQEQ Group as AIFM)
Tel: 020 3696 1302
Katie Tzouliadis, Dan Mahoney
Tel: 020 3178 6378
NOTES TO EDITORS
About The PRS REIT plc
The PRS REIT is a closed-ended real estate investment trust established to invest in the Private Rented Sector and to provide shareholders with an attractive level of income together with the potential for capital and income growth. It has raised a total of £500m (gross) through its Initial Public Offering, on 31 May 2017, and a subsequent placing in February 2018. Both fundraisings were supported by the UK Government's Homes England with direct investments.
About Sigma Capital Group plc
Sigma Capital Group plc ("Sigma") 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, is Investment Adviser to The PRS REIT plc. In April 2019, Sigma launched the Sigma Scottish PRS Fund, the first dedicated vehicle to focus on the creation of new rental homes for families in the private rented sector in Scotland, and in October Sigma announced the expansion of its build-to-rent activities in London.
About Sigma PRS Management Limited
Sigma PRS Management Limited is a wholly-owned subsidiary of AIM-quoted Sigma Capital Group plc 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 Investment Manager 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)
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