Valeria Martinez, Investment Week, 1 September 2023:
The Triple Point Social Housing (SOHO) REIT has sold four properties roughly in line with the book value of its portfolio, with proceeds earmarked for potential share buybacks or debt repayments.
In a stock exchange notice today (1 September), the board said the assets had been sold to a private UK real estate investment firm for £7,586,600, which is only marginally (c.4%) lower than the aggregate book value of £7,870,000 at 30 June.
The properties were sold at a gain of £663,136 (9.6%) against the purchase price and comprise a range of property types, lessees and care providers. At 30 June, the assets had a blended net initial yield of 5.75% and weighted average unexpired lease term (WAULT) of 19.3 years…
According to the Association of Investment Companies, SOHO is trading at a 56% discount to NAV, with its share price up 2% this morning.
In a research note, QuotedData said the sale gives “considerable credence” to the valuation methodology used to calculate the NAV.
Even if property valuations and debt servicing costs move up, the firm said the current discount looks “excessive to say the least and leaves a huge margin for error”.
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