31st Mar 2025 10:16
(Alliance News) - PRS REIT PLC on Monday said profit grew in the first half of its financial year, as discussions to sell the company continue.
The Manchester, England-based real estate investment trust is focused on the private rental sector.
Revenue increased 17% to GBP32.9 million in the six months to the end of December from GBP28.1 million in the first half of financial 2024.
Pretax profit rose 52% to GBP46.2 million from GBP30.3 million, while net rental income grew 16% to GBP26.6 million from GBP2.9 million.
PRS REIT made a GBP34.7 million gain from fair value adjustment on investment property, up 69% from a gain of GBP20.5 million a year before.
Basic earnings per share were up 53% to 8.4 pence per share from 5.5p.
PRS REIT said the increase in profitability was due to higher revenue and the difference in gains from fair value adjustments. It noted that the valuation movements are non-cash items.
As previously announced, the company declared a 1.1 pence per share dividend for its second quarter, up 10% from the previous year's 1.0p pence. The total first-half payout was 2.1p per share, up 5.0% on-year from 2.0p.
PRS REIT said its "continued earnings growth" allows it to "consider raising the total dividend payout target" for the current financial year.
Net asset value per share grew 4.8% to 139.6 pence on December 31 from 133.2 pence on June 30, the end of financial 2024.
PRS REIT said 41 new homes were added to its portfolio in the first half of the 2025 financial year, taking the portfolio to 5,437 completed homes.
The company launched a strategic review and formal sale process during the recent half year.
It said discussions with "a number of parties" related to non-binding proposals to buy the company are ongoing.
"Alongside this, and as part of the wider strategic review, the board continues to explore all the options available to the company, with a view to maximising value for the company's shareholders," PRS REIT said.
Looking ahead, the trust said its balance of delivery remains on track to complete by the end of June, and its portfolio "continues to perform strongly".
At completion, it expects the portfolio to be made up of 5,478 homes with an updated overall estimated rental value of GBP70 million.
PRS REIT said it expects rental demand to grow against a backdrop of structural under supply, high interest rates, cost-of-living pressure and a rising population.
Non-Executive Chair Geeta Nanda said: "Interim results are excellent, reflecting the continued strong performance of the company's portfolio of rental homes, the largest of its kind in the UK...The shortage of high-quality family rental homes in the UK combined with rising demand continue to favour prospects for the PRS REIT."
Shares in PRS REIT were up 1.1% to 115.80 pence in London on Monday morning. The wider FTSE 250 index was down 1.5%.
By Michael Hennessey, Alliance News reporter
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