The PRS REIT, which invests in new-build family homes in the private rented sector (PRS), has reported a slowdown in home completions due to covid-19.
During the quarter to the end of June, it completed 135 new rental homes, which was below the prior quarter volume of 330. This was due to an eight week period when construction activity was suspended or disrupted because of covid-19 related restrictions.
The group collected 98% of rent for the quarter and said the equivalent of just 0.49% of annual rent were in lockdown-related rent arrears.
Rental demand remained strong, with prices steady at pre-covid-19 levels, the group said.
The company’s total portfolio of completed homes stood at 2,082 homes at the end of June (June 2019: 1,173), with an estimated rental value (ERV” of £19.1m per annum (June 2019: £10.7m).
In addition, a total of 2,750 homes were under construction at the end of the quarter. When completed and let, they are expected to generate an annualised gross rent of around £27.1m, which takes the ERV of the PRS REIT’s portfolio of assets to £46.2m per annum.
The pace of construction is now slower, owing to the social distancing requirements, but the company expects around 450 new homes to be completed during the quarter to the end of September.
Dividends
An interim dividend payment of 1.0 pence per ordinary share in respect of the third quarter of the financial year (January to March) will be payable on 17 July 2020. Details of the fourth quarter interim dividend will be declared at the end of July.
A target of 4p per share for the financial year and a minimum of 4p per share for the new financial year ending 30 June 2021 have been set by the board.
PRSR : PRS REIT reports slowdown in completions