23rd Oct 2024 14:03
(Alliance News) - PRS REIT PLC on Wednesday said it is starting a formal sale process as it is considering all options to improve value for shareholders.
The Manchester, England-based real estate investment trust said it is undertaking a strategic review to consider the future of the company and explore all strategic options available to enhance value for its investors.
One of the options available would be a potential sale of the company.
"The board believes that the company has successfully established the largest build-to-rent single-family home portfolio in the UK, creating significant asset value returns for its shareholders. As recently announced, the company's existing portfolio grew to 5,425 completed homes as at 30 September 2024, with an estimated rental value of GBP67.5 million per annum. PRS REIT continues to demonstrate best-in-class occupancy and rent collection rates, at 98% and 100% respectively. The company's prospects remain positive against the backdrop of a structural shortage of quality family rental homes in the UK, a situation exacerbated by private landlords exiting the rental market," the company said.
Two weeks ago, PRS REIT reported a jump in profit to GBP93.7 million in the financial year ended June 30, from GBP42.5 million a year ago. Rental income rose 17% to GBP58.2 million from GBP49.7 million.
PRS REIT shares rose 3.1% to 107.00 pence each on Wednesday afternoon in London. It has a market capitalisation of GBP587.7 million.
By Tom Budszus, Alliance News slot editor
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