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Triple Point Social Housing REIT PLC shares jumped on Tuesday, after it said that it plans to begin a share buyback programme for up to £5.0 million.
Shares in the London-based real estate investment trust were up 8.7% at at 52.52 pence each on Tuesday morning in London.
Triple Point has instructed its corporate broker, Stifel Nicolaus Europe Ltd, to kickstart its share buyback programme of up to £5 million.
‘The board believes that the discount to net asset value per ordinary share at which the company’s shares currently trade materially undervalues the company and its portfolio,’ it explained.
The company added that it believes the buyback programme will be accretive to NAV and will increase its dividend cover.
Triple Point said it already has approval to repurchase around 40.3 million shares, which was granted by shareholders at its 2022 annual general meeting. It will seek further approval at the next annual general meeting.
Triple Point also has appointed CBRE Group Inc, which provides commercial real estate services and investments, to market a portfolio of its properties.
The company said it plans to market a portfolio of its properties. Should any sale proceed, Triple Point added it will aim to return shareholders’ capital through an extension of the share buyback programme.
Triple Point’s portfolio, comprised of 497 properties, contributed to a 0.7% increase in its net asset value to £439.3 million over the course of the year ended December 31, 2022.
Triple Point’s Chair, Chris Phillips, said: ‘The board and the company’s investment manager remain focused on delivering value to shareholders, and we are taking proactive measures to address the persistent discount of the company’s share price compared to the prevailing NAV.
‘We expect the sale of a portfolio of properties, subject to market conditions and pricing, to deliver shareholder value and are confident that, at current share price levels, the net impact of the share buyback programme will be accretive to the Company’s NAV and will benefit dividend cover.
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