PRS REIT reveals receipt of several potential acquisition offers following strategic review

The board of Manchester-based private rented sector housing group, PRS REIT, said it has received several potential offers for the group, following its decision to implement a strategic review last October.

In an update to the stock market it said that, having made available a data room to multiple interested parties, it has now received several non-binding proposals in connection with the acquisition of the company.

Most of these proposals were pitched within a price range representing a premium to the current share price of 109.2p per share and a discount to the latest published net asset value as at 30 June 2024 of 133.2p per share.

The board said it intends to invite a subsection of such parties to enter into a confirmatory due diligence process which is expected to be completed no later than the end of calendar Q1 25.
It warned there can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.

Further announcements will be made when appropriate, the group said.

It added that, reflecting on the remit of the strategic review, the board continues to explore all the options available to the company, with a view to maximising value for shareholders.

PRS REIT also announced today that it has increased its interim quarterly dividend of 1.1p per ordinary share for the second quarterly period in 2024, against 1p the same quarter a year ago.

The dividend increase reflects the company’s continued strong rental and earnings growth.

Accordingly, the dividends declared in respect of the first six months of its current financial year – being 2.1p in aggregate – will be covered by EPRA earnings.