TIDMSOHO
RNS Number : 1589T
Triple Point Social Housing REIT
13 November 2023
13 November 2023
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the
"Group")
NET ASSET VALUE, UPDATE ON SHAREHOLDER CONSULTATION AND DIVIDEND
DECLARATION
The Board of Triple Point Social Housing REIT plc (the "Board")
(ticker: SOHO) is pleased to announce the Company's unaudited Net
Asset Value ("NAV") as at 30 September 2023, an update following
consultation with the Company's shareholders, and the declaration
of the Group's third quarterly interim dividend.
NAV as at 30 September 2023
The unaudited NAV reflects an independent RICS "Red Book"
valuation of the Company's portfolio (including all property
acquisitions completed) as at 30 September 2023, prepared by Jones
Lang LaSalle Limited, on an individual asset basis (as required by
IFRS).
NAV
As at 30 As at 30 % change
Sept 2023 Jun 2023
(unaudited) (unaudited)
-------------- -------------- ----------
NAV per Ordinary Share
(pence)* 108.88p 111.31p (2.2)%
-------------- -------------- ----------
* As at 30 September 2023, the EPRA NTA and IFRS NAV for the
Company were the same.
Income less expenses had a net positive 0.05p per share impact
on the NAV. The reduction in NAV was a result of a GBP9.8 million
(or 2.48p per share) decrease in the value of the Group's property
portfolio. The blended portfolio Net Initial Yield moved out by 16
bps during the quarter to 5.84% as at 30 September 2023, reflecting
wider market conditions and adjustments attributable to properties
leased to My Space and Parasol Homes. In addition, the Board notes
that at least 65% of the Group's 2024 annual rent increases will be
linked to the September 2023 Consumer Price Index figure of
6.7%.
Update following Shareholder Consultation
The Board and Triple Point Investment Management LLP ("Triple
Point" or the "Manager") have consulted with a number of the
Company's shareholders, representing c.21% of the share register,
in accordance with Provision 5.2.4 of the AIC Code of Corporate
Governance. The Board and the Manager each acknowledge shareholder
concerns regarding the performance of the Company's shares and
remain committed, in consultation with the Group's strategic
advisers, to addressing the persistent discount to EPRA Net
Tangible Assets ("NTA").
Alongside these active considerations, the Board and the Manager
continue to focus on the underlying performance of the Group.
-- The majority of the Group's portfolio continues to perform in
line with expectations with 25 out of 27 Approved Providers
demonstrating no material arrears. As reported in the Group's
interim report for the six months ended 30 June 2023, a creditor
agreement is in place with Parasol and Parasol is paying all
monthly rent due under the agreement. The Manager is working
towards agreeing a creditor's agreement with My Space which is
expected to be in place by the end of Q1 2024. Simultaneously the
Manager is working with My Space to move certain properties to
alternative Registered Providers. The Board and the Manager remain
focused on the long-term performance of these two lessees.
-- As expected, dividend cover improved in Q3 2023 and the
dividend for the quarter was fully covered on an adjusted earnings
basis. We anticipate this improved dividend cover to continue over
the remainder of the financial year.
The Group has a total cash balance of GBP31.0 million of which
GBP5.1 million is in restricted bank accounts and a further GBP14.4
million is held back for working capital purposes, leaving net
available cash of GBP11.5 million. Therefore, w ere the Company to
undertake a further return of capital with an equal corresponding
paydown of the Group's debt, any such distribution to shareholders
would be limited to c.GBP5.75 million.
Given current economic conditions and the limited amount of
capital that the Company would currently be able to return to
shareholders without increasing its gross leverage, the Board has
decided that any further return of capital is dependent on
significant additional liquidity being delivered through property
sales.
Following the portfolio sale (announced by the Company on 1
September 2023) which was principally in line with book value, the
Board and Manager will continue to consider further disposal
opportunities. However, this is subject to market conditions being
supportive of maximising shareholder value and so a further
portfolio sale is unlikely to be pursued before the end of this
year. The Board remains committed to shareholder engagement and
will continue to consult with shareholders as further progress is
made.
Dividend Declaration
The Board has declared an interim dividend in respect of the
period from 1 July to 30 September 2023 of 1.365 pence per ordinary
share in the capital of the Company, payable on or around 15
December 2023 to holders of such ordinary shares on the register on
1 December 2023. The ex-dividend date will be 30 November 2023.
The dividend will be paid as a Property Income Distribution.
This dividend is in line with the Company's target annual
dividend of 5.46 pence per ordinary share in respect of the
financial year ending 31 December 2023.
ENDS.
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
Triple Point Investment Management Tel: 020 7201 8989
LLP
(Investment Manager)
Max Shenkman
Isobel Gunn-Brown
Akur Capital (Joint Financial Adviser) Tel: 020 7493 3631
Tom Frost
Anthony Richardson
Siobhan Sergeant
Stifel (Joint Financial Adviser Tel: 020 7710 7600
and Corporate Broker)
Mark Young
Rajpal Padam
Madison Kominski
Brunswick Group (Financial PR Adviser) Tel: 020 7404 5959
Nina Coad
Diana Vaughton
Mara James
The Company's LEI is 213800BERVBS2HFTBC58.
Further information on the Company can be found on its website
at www.triplepointreit.com .
NOTES:
The Company invests in primarily newly developed social housing
assets in the UK, with a particular focus on supported housing. The
majority of the assets within the portfolio are subject to
inflation-linked, long-term, Fully Repairing and Insuring ("FRI")
leases with Approved Providers (being Housing Associations, Local
Authorities or other regulated organisations in receipt of direct
payment from local government). The portfolio comprises investments
into properties which are already subject to a lease with an
Approved Provider, as well as forward funding of pre-let
developments but does not include any direct development or
speculative development.
The Company was admitted to trading on the Specialist Fund
Segment of the Main Market of the London Stock Exchange on 8 August
2017 and was admitted to the premium segment of the Official List
of the Financial Conduct Authority and migrated to trading on the
premium segment of the Main Market on 27 March 2018. The Company
operates as a UK Real Estate Investment Trust ("REIT") and is a
constituent of the FTSE EPRA/NAREIT index.
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END
DIVBTBITMTTBBLJ
(END) Dow Jones Newswires
November 13, 2023 02:00 ET (07:00 GMT)
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