21st Jul 2025 09:38
(Alliance News) - PRS REIT PLC on Monday said it will continue its formal sale process following shareholder consultations, and confirmed that it is in discussions with Long Harbour Ltd over a non-binding acquisition proposal.
The Manchester, England-based real estate investment trust said it completed a consultation process regarding strategic options, and decided to continue the formal sale process first launched in June.
The board is in talks with Long Harbour on a possible offer, though the proposal remains subject to due diligence and financing. PRS REIT said there is no certainty an offer will be made or what terms it might include. Other options under the ongoing strategic review remain on the table.
The investment trust, which focuses on the private rental sector, started a formal sale process last October and has received several non-binding proposals.
On June 11, PRS REIT said it had received an approach from Long Harbour, which is "superior" to any other written proposals it has received.
Under the potential offer terms, PRS REIT said its shareholders would be entitled to 115 pence per share in cash, with the offer valuing the trust at GBP631.6 million, based on its 549.3 million shares in issue.
Shares in PRS REIT were 0.2% higher at 107.25 pence in London on Monday morning.
The update came alongside a trading statement for the fourth quarter and year ended June 30.
The trust, which invests in single-family rental housing, said it had completed all homes in its delivery programme, ending the quarter with 5,478 rental units, up from 5,396 a year before. The estimated rental value of the portfolio rose to GBP72.0 million from GBP65.1 million.
Rent collection in the quarter stood at 99%, with 96% of homes occupied and a further 89 homes reserved. Total arrears net of bad debt provision stood at around GBP1.0 million, down slightly from GBP1.1 million a year earlier.
Like-for-like rent growth over the 12 months to June 30 was 9.6%, easing from 12% the year before.
The company expects to declare a fourth-quarter dividend in early August. Dividends declared for the first three quarters of the year total 3.2 pence per share, up from 3.0p year-on-year. The third-quarter payout of 1.1p was paid on June 6.
By Eva Castanedo, Alliance News reporter
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