7th Oct 2025 10:05
(Alliance News) - PRS REIT PLC on Tuesday reported a double-digit decline in profit during its most recent financial year after a fall in fair value adjustments, as the firm seeks shareholder approval for a potential liquidation of its assets.
The Manchester, England-based real estate investment trust said pretax profit was GBP77.0 million for the year that ended June 30, falling 18% from GBP93.7 million the year before.
This was driven primarily by a GBP53.6 million gain from fair value adjustment on investment property, down 27% from GBP73.4 million a year earlier.
Revenue, on the other hand, grew 14% to GBP66.5 million from GBP58.2 million. Net rental income rose 13% to GBP53.3 million from GBP47.3 million.
Completed homes at September 30 totalled 5,478, unchanged from June 30. This was up 1.5% from 5,396 homes at June 30, 2024.
"Our housing delivery programme was completed in June 2025, marking a significant milestone, and the latest estimated rental value of the completed portfolio, at the end of September, 2025 is GBP73.4 million per annum," said Chair Geeta Nanda.
"We are at non-binding heads of terms stage for a potential sale of the company's assets and will make a further announcement on this in due course...High-quality, new rental homes remain undersupplied in the UK and we expect our portfolio to continue to perform very well."
IFRS net asset value and EPRA net tangible assets per share at June 30 was 143.0 pence, up 7.4% from 133.2p a year prior.
The company in mid-September entered a non-binding heads of terms to sell its operating subsidiary PRS REIT Holding Co Ltd, and potentially liquidate its assets.
The proposed buyer is an investment vehicle owned by a fund whose advisor is Waypoint Asset Management Ltd, a London-based real estate investor and provider of asset management services.
The heads of terms includes the condition that PRS not solicit third-party offers, though it can still engage with other potential buyers making offers. If a binding firm offer or new investment in PRS or its operating subsidiary occurs during the negotiation period, PRS will owe Waypoint a GBP5.7 million break fee.
The deal remains subject to due diligence, a sale and purchase agreement yet to be signed and approval by PRS shareholders. If the takeover proceeds, PRS will seek approval to liquidate its shares and distribute assets "as soon as reasonably practiceable."
The company aims to complete the sale by the end of November.
PRS declared a total dividend of 4.3 pence per share for financial 2025, up 7.5% on-year from 4.0p. The company is targeting at least 4.5p per share for financial 2026.
PRS said trading in the first quarter remained "strong" and that prospects "remain very positive", with an update on its strategic review and formal sale process "in due course".
Shares in PRS REIT were down 0.4% at 111.60 pence in London on Tuesday morning. The stock has risen 13% over the past year.
By Emily Parsons, Alliance News reporter
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