PRS REIT to be fully invested by 2019 – The PRS REIT has published its first set of results, covering the 13 months from commencement of trading on 31 May 2017 to 30 June 2018.
Financial highlights
- Total revenue of £1.8m, generated from rental income, with net rental income of £1.5m
- Operating profit of £2.7m
- Profit after finance income and tax was £3.2m
- Earnings per share on an IFRS basis was 1.0p
- Net assets at 30 June 2018 stood at £486m, representing an NAV per share of 98.3p on both an IFRS and EPRA basis
- The dividend target of 5p per share for the financial period was achieved – a dividend yield of 5%, based on the IPO issue price of 100p
Once in place, PRS REIT will have c£900m to invest
- Over £750m invested at 30 September 2018, which will equate to c. 5,100 new rental homes when completed
- A second equity placing raised an additional £250m (gross)
- Debt facilities of £200m were secured in June 2018 and additional debt facilities of £200m are under discussion.
Portfolio at 30 June 2018:
- 405 homes were completed, generating annualised rental income of c. £3.6m
- Completed and contracted development amounted to c. £248m
- and the estimated rental value (“ERV”) of the sites when fully completed is c. £15.5m
- Committed development of c. £437m was in process, with an ERV of c. £27.4m p.a. once all the sites are fully built-out
The situation now (10 October 2018)
- 595 homes were completed, generating an annualised rental income of £5.7m
- completed and contracted development amounted to c. £384m and the ERV of the sites when fully completed is c.£24.1m p.a.
- committed development of c. £372m was in process, with an ERV of c. £23.0m p.a. when all the sites are fully built-out
- total ERV of completed, contracted and committed development is c. £47.1m p.a.
- Full commitment of c. £900m of funding resource is on track for early 2019
- Over and above this, a further c. £689m pipeline of qualified development opportunities has been identified and is contractually controlled in Framework or Collaboration Agreements with partners
Steve Smith, chairman, commented: “We have performed well over our first thirteen months of trading and, while there were some site-specific delays in the period, we are pleased with overall progress. About GBP756m of our funding resource has now been committed to the delivery of new rental housing, which represents some 5,100 new homes. Of this, 595 homes are completed and let, approximately 2,000 are under construction, and the balance is due to start construction after procurement processes have been completed.
Our access to land and development opportunities is one of our key strengths, and we remain on track to have committed GBP900m – our full resource when additional gearing is included – to sites early in 2019.
The rental market for family homes remains especially undersupplied and we have experienced strong demand for our professionally-managed family housing. Overall, therefore, we believe that the Company is in an extremely good position to deliver our planned programme of new family homes, and to prosper as the UK rented housing sector continues to grow.”
PRSR : PRS REIT to be fully invested by 2019