TIDMPRSR
RNS Number : 2981Q
PRS REIT PLC (The)
18 June 2020
18 June 2020
PRSR.L
The PRS REIT plc
("Company" or "PRS REIT")
Coronavirus Update and Dividend Declaration
The PRS REIT, the real estate investment trust that is investing
in new-build family homes in the Private Rented Sector ("PRS"),
provides an update on the third quarter dividend payment, future
dividend payments, and the Company's current performance in the
disrupted environment resulting from the coronavirus crisis.
The Board is pleased to report that the PRS REIT's portfolio of
new family rental homes has performed resiliently during the past
months. Rental income has not been materially affected, and the
number of completed homes is growing again, with the 2,000(th) home
completed on 16 June, following the resumption of construction
activity. New tenants are beginning to move in and rental demand is
high, with reservations at a strong level.
The Company's Investment Adviser is working hard with
construction partners on revised delivery schedules and new methods
of working, which is helping to regain momentum. The Board would
like to thank all partners for their efforts and assistance over
these difficult times.
Dividends
Following the deferral of the interim dividend for the third
quarter, covering 1 January 2020 to 31 March 2020, there is
sufficient clarity on the construction sector for the Board to
declare an interim dividend for that quarter of 1.0 pence per
ordinary share. This dividend, which is a non-Property Income
Distribution ("non-PID") will be payable on 17 July 2020 to
shareholders on the register on 26 June 2020. The ex-dividend date
will be 25 June 2020.
In light of the significant uncertainty created by the global
coronavirus pandemic, and specifically the disruption to planned
construction schedules, the Board now considers it prudent to
target a total dividend of 4.0 pence per ordinary share for the
current financial year ending 30 June 2020. For the next financial
year ending 30 June 2021, the Board will target a minimum total
dividend of 4.0 pence per ordinary share(1) .
Coronavirus Update
Construction Activity
Construction activity, which was suspended with the national
'lockdown' in March, has now restarted. Contracted homes currently
total c. 2,900 units. They are at varying stages of progress, from
site commencement to final stages of delivery. A further GBP75m of
funding is pending investment, having been strategically deferred
in the light of the disrupted marketplace, as previously reported.
Completed homes currently stand at 2,000.
Social distancing measures are being observed on sites, in line
with Government guidelines to maintain a safe working environment.
While productivity will be impacted, slowing the rate at which
homes are completed, over 450 new homes are scheduled for delivery
through June to the end of August 2020. This will take the
Company's portfolio to over 2,400 completed homes at that point,
providing an aggregate estimated rental value of GBP22.2m.
Rent Collection and Reservations
Rent collection has been resilient in the two months since the
'lockdown', with 97% collection rate in May. The Company is
agreeing new payment plans for those households that have requested
assistance.
Rental demand remains high, and reservations have been rising
weekly since the beginning of May. The week commencing 1 June saw
88 new reservations across the portfolio, the highest week for
reservations this calendar year. There are now over 500
reservations awaiting a moving-in date. These reservations are
expected to deliver an additional annual rental income of c.GBP4.6m
once homes are completed and reservees take occupancy. Rental rates
remain unchanged compared to pre-crisis levels. Occupation dates
are being targeted over the next three months and the pace of
tenants taking residence is increasing steadily.
Outlook
As previously stated, the Company remains well-positioned
financially and operationally to meet the challenges and
opportunities ahead, and the Board is confident that the Company's
long-term prospects are undiminished.
A further update covering the fourth quarter of the financial
year will be provided in July.
(1) This is a target only and there can be no assurance that the
target can or will be met and should not be taken as an indication
of the Company's expected or actual future results. Accordingly,
potential investors should not place any reliance on this target in
deciding whether or not to invest in the Company or assume that the
Company will make any distributions at all and should decide for
themselves whether or not the target dividend yield is reasonable
or achievable.
For further information, please contact:
The PRS REIT plc Tel: 020 3178 6378 (c/o KTZ Communications)
Steve Smith, Non-executive Chairman
Sigma PRS Management Limited Tel: 0333 999 9926
Graham Barnet, Mike McGill
N+1 Singer Tel: 020 7496 3000
James Maxwell, James Moat, Ben
Farrow
G10 Capital Limited (part of the Tel: 020 3696 1302
IQEQ Group as AIFM)
Gerhard Grueter
KTZ Communications Tel: 020 3178 6378
Katie Tzouliadis, Dan Mahoney
NOTES TO EDITORS
About The PRS REIT plc
(www.theprsreit.com)
The PRS REIT is a closed-ended real estate investment trust
established to invest in the Private Rented Sector and to provide
shareholders with an attractive level of income together with the
potential for capital and income growth. It has raised a total of
GBP500m (gross) through its Initial Public Offering, on 31 May
2017, and a subsequent placing in February 2018. Both fundraisings
were supported by the UK Government's Homes England with direct
investments.
LEI: 21380037Q91HU97WZX58
About Sigma Capital Group plc
( www.sigmacapital.co.uk )
Sigma Capital Group plc ("Sigma") is a private rented sector,
residential development, and urban regeneration specialist, with
offices in Edinburgh, Manchester and London. Sigma's principal
focus is on the delivery of large scale housing schemes for the
private rented sector. It has a well-established track record in
assisting with property-related regeneration projects in the public
sector, acting as a bridge between the public and private sectors.
Its subsidiary, Sigma PRS Management Limited, is Investment Adviser
to The PRS REIT plc of its build-to-rent activities.
About Sigma PRS Management Ltd
Sigma PRS Management Limited is a wholly-owned subsidiary of
AIM-quoted Sigma Capital Group plc and is Investment Adviser to The
PRS REIT plc. It sources investments and operationally manages the
assets of The PRS REIT plc and advises the Alternative Investment
Fund Manager ("AIFM") and The PRS REIT plc on a day-to-day basis in
accordance with The PRS REIT plc's Investment Policy. The
Investment Manager is G10 Capital Limited. Sigma PRS Management Ltd
is an appointed representative of G10 Capital Limited, which is
authorised and regulated by the Financial Conduct Authority
(FRN:648953)
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END
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