Housing group reports strong year with robust demand

Manchester housing group, PRS REIT, announced impressive full year results today, with both revenues and profits soaring.

Turnover for the 12 months to June 30, was up 106% to £26.6m, while the pre-tax profit of £44.113m compared with £16.407m the previous year.

The total dividend remains the same at 4p per share.

The group said delivery progressed well, with the 4,000th home milestone reached just after financial year-end

There were 1,902 new homes added to the portfolio (2020: 909), taking the total at financial year-end to 3,984 homes with an estimated rental value (ERV) of £37.5m per annum (2020: £19.1m pa). A further 1,071 home were under way (30 June 2020: 2,803).

Coronavirus-related disruptions reduced activity levels by around 5-10% during the year, compared with approximately 40% in 2020.

Following the reporting period, the group successfully concluded an equity placing worth £55.6m, to support the acquisition of five sites, expected to deliver around 500 new homes with an ERV of £4.8m pa. Two of the five sites have now been acquired.

The group revealed that in the first quarter of the current financial year it added 307 homes, taking the portfolio to 4,291 completed homes, with an ERV of £41m pa A further 764 homes were under way at September 30, 2021.

Rental demand remains strong. At September 30, 2021, 98% of 4,291 completed homes were occupied, and a further 52 homes reserved for qualified applicants with rental deposits paid.

The company said it remains on track to reach its 5,000th home in the middle of calendar 2022 and, following the recent equity placing, a higher target of 5,700 homes, with an ERV approaching £55m pa.

Long-term growth opportunity for the group is strong, underpinned by a structural undersupply of high quality, family rental homes.

Chairman, Steve Smith, said: “We are pleased with the continued progress of The PRS REIT plc in its fourth year of activity.

“We have effectively navigated the ongoing challenges posed by the coronavirus pandemic, delivering almost 2,000 new homes in the year.

“By the end of the first quarter of the new financial year, the portfolio comprised 5,055 completed and contracted homes, and following the recent equity placing we are firmly on track to deliver a higher target of 5,700 homes.”

He added: “Demand for our homes remains strong, and in a recent survey of customers 10 months into their tenancies, 96% of respondents reported that they were happy in their homes.

“The continued undersupply of high quality, well managed family rental homes means that we remain highly confident of long term prospects for the company.

“We are very pleased to be playing a role in helping to solve the UK’s housing shortage, providing desirable homes across the country for hard working families.”