LONDON - The PRS REIT, a leading real estate investment trust specializing in high-quality, new build, family homes for the private rental sector, has reported continued strong performance for its second quarter, ending December 31, 2024. Despite recent market fluctuations, the company has experienced favorable market fundamentals, including a significant shortage of single-family rental homes in the UK, which has been a key driver for its business model.
As of December 31, 2024, the PRS REIT's portfolio comprised 5,437 completed homes, an increase from 5,425 at the end of the previous quarter, and significantly up from 5,264 homes at the same time the previous year. The estimated rental value (ERV) of these properties rose to £68.6 million per annum, compared to £67.5 million at the end of September 2024 and £60.3 million a year prior.
The number of contracted homes, however, has decreased to 41 from 151 in the previous quarter, with a corresponding decline in ERV. The delivery program is approaching completion, with the remaining homes expected to be finished by the end of June 2025.
Rent collection for the quarter stood at 99%, maintaining a high level of efficiency. Physical occupancy rates were at 96%, with 5,232 of the completed homes occupied. Including homes reserved by applicants who had passed referencing and paid deposits, the occupancy rate reached 97%. The company also reported like-for-like rental growth on stabilized sites of 11% over the preceding 12 months.
The Board of PRS REIT anticipates declaring an interim quarterly dividend for the three months ended December 31, 2024, in early February 2025. This follows a strategic review announced on December 3, 2024, where the Board is engaging in discussions with several interested parties regarding a potential sale of the company, aiming to maximize shareholder value. An update on this process is expected in the first quarter of 2025.
The information in this article is based on a press release statement from PRS REIT.
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