PRS developer continues with growth as profits climb

The development in Holyoake Road, Walkden

Sigma, the private rented sector residential developer, has reported a rise in revenues following strong progress after the opening up of the construction and lettings sector in May 2020.

Sigma’s PRS REIT reported revenues, which is derived from rental income, increased year-on-year by 91 per cent to £10.7m in the six months ending 31 December 2020, up from £5.6m for the same period in the previous year.

The group said this reflected growth in completed and let homes in its portfolio.

After non-recoverable property costs, the net rental income for the period increased by 87 per cent to £8.4m, up from £4.5m in 2019.

Half year pre-tax profits also rose 85 per cent to £20.3m from £11m in the previous year.

Steve Smith, non-executive chairman of The PRS REIT plc, said: “The PRS REIT has made strong progress since construction activity reopened in May after the initial national lockdown.

“Several major milestones were reached in the period. The portfolio’s 3,000th new rental home was added in December, following the delivery of the 2,000th home in June, and the balance of our £900 million gross funding resource was fully committed.

“The acquisition of three fully-completed and let sites has accelerated income delivery, and we remain well on our way to our 5,000th home by early 2022, based on current construction schedules.

“The PRS REIT has now created the largest portfolio of brand-new, single-family rental homes in the UK. We are fulfilling an important social need, and demand for our high-quality, professionally-managed homes remains strong.

“There continues to be a deficit in supply and we are confident about prospects for the Company and the delivery of our dividend target for the current financial year.”

The group has also announced the appointment of Geeta Nanda OBE as a non-executive director.

Geeta has over 25 years’ experience of working in the property sector. She is CEO of Metropolitan Thames Valley Housing Association (“MTVH”), having previously led its creation in 2017 with the merger of Metropolitan Housing Trust and Thames Valley Housing Association.