PRS Reit (The) (PRSR)

Sector:

Property Investment Trusts

Index:

FTSE 250

105.80p
   
  • Change Today:
    -0.40p
  • 52 Week High: 108.00
  • 52 Week Low: 73.00
  • Currency: UK Pounds
  • Shares Issued: 549.25m
  • Volume: 1,073,103
  • Market Cap: £581.11m
  • RiskGrade: 101

PRS REIT reports strong growth in full-year revenue, profits

By Josh White

Date: Tuesday 08 Oct 2024

LONDON (ShareCast) - (Sharecast News) - PRS REIT reported a strong set of full-year results on Tuesday, driven by solid asset performance and robust rental demand.
The FTSE 250 private rented sector specialist said revenue increased 17% year-on-year for the 12 months ended 30 June, to £58.2m, with net rental income rising 18% to £47.3m.

Operating profit jumped 90%, reaching £111.7m, and profit after tax surged 120% to £93.7m.

Earnings per share also saw impressive growth, with basic earnings up 122% to 17.1p and EPRA earnings per share increasing 19% to 3.7p.

The real estate investment trust added 316 new homes to its portfolio during the year, bringing the number of completed homes to 5,396 as of 30 June, with an estimated rental value of £65.1m per annum - an 18% increase year-on-year.

Another 180 homes with an estimated rental value of £1.4m were under construction at the period's end.

Despite a slight softening in yields to 4.59% from 4.47%, the strong estimated rental value growth offset that impact, while occupancy remained high at 96%.

Rent collection was robust, with 99% of total rent invoiced collected.

The firm also reported like-for-like blended rental growth of approximately 12% on stabilised sites, with re-lets to new tenants achieving rental growth of 15%.

Affordability remained stable, with average rent as a proportion of gross household income at 23%.

The company's net asset value rose 11% to £731m, supported by continued growth in rental demand and a structural shortage of quality family rental homes in the UK.

PRS REIT said it planned to complete a further 151 homes, which were expected to be ready by the end of the first quarter of next year, bringing the portfolio to around 5,600 homes with an estimated rental value of £69.1m per annum.

Prospects for the company were positive, the board said, with rental demand expected to stay high amid limited supply in the UK market.

"These are truly excellent numbers reflecting the efficacy of the strategy and the hard work and commitment of the board, our investment adviser Sigma, our investors, banking and housebuilding partners, and local and central government supporters," said chairman Steve Smith.

"To be in position to deliver a set of results of this quality after so many obstructions along the way, notably Covid-19 and debt cost inflation, is a great achievement.

"The company is perfectly poised for its next phase of growth - investors are in a very strong position, with multiple options and, on a personal note, I sincerely hope that investors grasp the opportunity to enable the business to achieve its full potential."

Smith said the board remained confident about the company's prospects, with affordability - average rent as a proportion of gross household income - and asset performance both strong.

"In line with our announcement issued on 13 September, the newly-constituted board intends to review the company's strategy and will provide an update when appropriate.

"The company is fully focussed on maximising value for all shareholders."

Reporting by Josh White for Sharecast.com.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

PRS Reit (The) Market Data

Currency UK Pounds
Share Price 105.80p
Change Today -0.40p
% Change -0.38 %
52 Week High 108.00
52 Week Low 73.00
Volume 1,073,103
Shares Issued 549.25m
Market Cap £581.11m
RiskGrade 101

PRS Reit (The) Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
85.57% below the market average85.57% below the market average85.57% below the market average85.57% below the market average85.57% below the market average
92% below the sector average92% below the sector average92% below the sector average92% below the sector average92% below the sector average
Price Trend
82.26% above the market average82.26% above the market average82.26% above the market average82.26% above the market average82.26% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Income
7.63% below the market average7.63% below the market average7.63% below the market average7.63% below the market average7.63% below the market average
83.33% below the sector average83.33% below the sector average83.33% below the sector average83.33% below the sector average83.33% below the sector average
Growth
80.94% above the market average80.94% above the market average80.94% above the market average80.94% above the market average80.94% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 1
Buy 1
Neutral 1
Sell 0
Strong Sell 0
Total 3
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

PRS Reit (The) Dividends

  Latest Previous
  4th Interim 3rd Interim
Ex-Div 08-Aug-24 09-May-24
Paid 30-Aug-24 31-May-24
Amount 1.00p 1.00p

Trades for 31-Oct-2024

Time Volume / Share Price
16:35 2,355 @ 105.80p
16:35 333,821 @ 105.80p
16:35 647 @ 105.80p
16:35 1,754 @ 105.80p
16:35 324 @ 105.80p

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