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PRS Reit PLC on Tuesday said its homes remain ‘highly attractive’ to prospective renters despite the turbulent economic environment, as it looks to expand its portfolio of properties following robust full-year results.
PRS Reit is a Manchester, England-based closed-ended real estate investment trust, which is investing more than £1 billion into a portfolio of homes for private rental across the UK.
For the financial year that ended June 30, the company reported operating profit of £127.0 million, multiplied from £26.6 million the year before.
Revenue also increased, up 58% to £42.0 million from £26.6 million. Net rental income for the year was £34.3 million, up 60% from £21.5 million.
Over the course of the year, PRS Reit added 802 homes to its portfolio, taking the total number of completed homes to 4,786 at June 30.
The company has an additional 793 contracted homes underway on the same date, at an estimated rental value of £7.2 million per annum.
It has revised its portfolio total target to around 5,600 homes with estimated rental value of £57.5 million per annum - from 5,700 homes and £55.0 million - reflecting price inflation on new sites and higher debt costs as well as significantly stronger rent.
The portfolio stood at 4,856 homes at the end of September, and PRS Reit expects to reach 5,000 homes by the end of 2022.
‘We have seen strong rental growth and anticipate increased occupier demand, particularly in a rising interest rate environment, which will make homeownership more unattainable for some. Affordability is more achievable for our customers. Our tenant base spends on average 25% of their income on rent, which is lower than last year's figure of 29%,’ said Chair Steve Smith.
Both rent collection and occupancy remained high, at 99% and 98% respectively, from 98% and 98%.
PRS Reit declared total dividends of 4.0 pence per share for the financial year, unchanged from a year ago.
Shares were trading 2.8% higher at 91.00p each in London on Tuesday morning.
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