QuotedData’s morning briefing 9 July 2024 – SBSI, PRSR

a pair of glasses sitting on the corner of a newspaper

In QuotedData’s morning briefing 9 July 2024:

  • Schroder BSC Social Impact Trust (SBSI) released its annual impact report. The report demonstrates that the portfolio has positively impacted 400,000 people since inception, provided decent, affordable homes for 35,000 disadvantaged, vulnerable and lower-income people; and delivered £217m in benefits for the public, through savings to government and households.
  • PRS REIT (PRSR) has lowered its fee structure and extended the term of its investment management agreement. From 1 July 2024, the company will pay its manager, Sigma PRS Management Ltd, a reduced tiered fee based on NAV of: 0.9% on NAV up to £250m (previously 1%); 0.85% on NAV between £250m and £500m (previously 0.9%); 0.7% on NAV between £500m and £1bn (previously 0.75%); 0.4% on NAV between £1bn and £2bn (previously 0.5%); and 0.3% on NAV above £2bn (previously 0.4%). The development management fee has also been reduced to 3% on land and 3.5% on construction (from 4% on both). On a pro forma basis, the new fee structure is expected to result in immediate cost savings for PRS REIT of 0.1p per annum on EPRA earnings per share, or £0.46m per annum, based on the company’s last published NAV. The existing investment advisory agreement and development management agreement has been extended to 30 June 2029 (from 31 December 2026). Chairman Steve Smith said: “The new terms lay the foundation for the next phase of growth. If, as we anticipate, interest rates reduce in the coming period, I expect the company’s investment proposition to become increasingly attractive to investors.”

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