21st Mar 2023 10:08
(Alliance News) - PRS REIT PLC on Tuesday reported a lower profit in the six months to December 31, as investment gains fell.
The Manchester-based real estate investment trust focused on private rental sector in UK said pretax profit plunged to GBP14.7 million in the recent half-year from GBP38.6 million a year ago. Rental income grew 22% to GBP24.2 million from GBP19.9 million.
Meanwhile, gain from fair value adjustment on investment property plunged to GBP5.8 million from GBP31.1 million.
Non-recovery property costs outpaced revenue growth, widening 30% to GBP4.5 million from GBP3.5 million. Total expenses increased 7.4% to GBP4.1 million from GBP3.8 million.
PRS REIT kept its dividend target for the financial year ending June 30 at 4.0 pence per share, unchanged from financial 2022 and financial 2021.
The company noted that between January 1 and March 10, 68 new rental homes with an estimated rental value of around GBP800,000 per year were added to its portfolio, taking the total portfolio to 4,981 completed homes with an estimated rental value of GBP57.9 million per year.
Looking ahead, Chair Steve Smith said: "Market factors remain strongly in our favour, and our sector - single family rental - is very robust. This reflects lack of supply, strong rental growth, and the benefit of multiple individual counterparties, which reduces concentration risk. Our homes are affordable for ordinary families up and down the country, and we remain very confident of prospects for the PRS REIT."
Further, the company said: "We expect cost-of-living increases and higher interest rates to boost demand as mortgage affordability pressures rise, especially for first-time buyers."
PRS REIT shares were marginally higher at 80.22 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.