Triple Point Social Housing REIT Portfolio update: Inclusion Housing CIC (2673Q)
February 15 2019 - 10:29AM
UK Regulatory
TIDMSOHO
RNS Number : 2673Q
Triple Point Social Housing REIT
15 February 2019
15 February 2019
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the
"Group")
Portfolio update - Inclusion Housing CIC
The Board of Triple Point Social Housing REIT plc (ticker: SOHO)
notes the Regulatory Judgement published today by the Regulator of
Social Housing (the "Regulator") in relation to Inclusion Housing
Community Interest Company ("Inclusion").
Inclusion, a registered provider focused on the supported
housing sector, has 1,861 social housing units under management (as
at 31 December 2018) and, as announced by the Company on 30 May
2018, has been subject to an in-depth assessment ("IDA") by the
Regulator having gone through the 1,000 social housing units under
management threshold. The outcome of the IDA is that Inclusion has
been graded 'non-compliant' with a V3 rating for viability and a G3
rating for governance.
The Company's delegated investment manager, Triple Point
Investment Management LLP (the "Manager"), has worked with
Inclusion for over four years and has developed a good working
relationship with Inclusion's management team. As the number of
units Inclusion has under management has grown, Inclusion's
business has evolved, together with its governance and compliance
policies and the Manager has monitored the business closely through
this growth period. The Manager receives monthly management
accounts from Inclusion and is satisfied that Inclusion continues
to be a well-run business with a strong and experienced management
team.
The Company has 60 assets leased to Inclusion, representing
approximately 21 per cent. of the Company's property portfolio (by
value) as at 31 December 2018.
The Manager has liaised with the Company's independent valuer,
Jones Lang LaSalle Limited, who has confirmed that there should be
no impact on the value of the Company's property portfolio as a
result of the non-compliant rating.
The Board and the Manager understand the Regulator's focus on
ensuring that the lease model is financially robust and able to
withstand adverse scenarios; and the judgment notes that Inclusion
is currently able to meet its commitments as and when they fall
due. Inclusion continues to meet all of its obligations, including
rent payments, under the terms of the leases with the Company.
As with all properties acquired for the Company's portfolio, the
Manager confirmed local demand, the suitability of the rental
levels and the quality of those assets owned by the Company and
leased to Inclusion at the time of acquisition. Given the ongoing
local authority support and the contractual obligations of the care
providers attached to the properties, the Manager and the Board
remain of the view that these are attractive assets.
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
Triple Point Investment Management Tel: 020 7201 8976
LLP
(Delegated Investment Manager)
James Cranmer
Ben Beaton
Max Shenkman
Justin Hubble
Canaccord Genuity Limited (Joint Tel: 020 7523 8000
Financial Adviser and Corporate
Broker)
Lucy Lewis
Denis Flanagan
Andrew Zychowski
Akur Limited (Joint Financial Adviser) Tel: 020 7493 3631
Tom Frost
Anthony Richardson
Siobhan Sergeant
The Company's LEI is 213800BERVBS2HFTBC58.
Further information on the Company can be found on its website
at www.triplepointreit.com.
NOTES:
The Company invests in primarily newly developed social housing
assets in the UK, with a particular focus on supported housing. The
assets within the portfolio are subject to inflation-adjusted,
long-term (typically from 20 years to 30 years), Fully Repairing
and Insuring ("FRI") leases with Approved Providers (being Housing
Associations, Local Authorities or other regulated organisations in
receipt of direct payment from local government). The portfolio
comprises investments into properties which are already subject to
an FRI lease with an Approved Provider, as well as forward funding
of pre-let developments but does not include any direct development
or speculative development.
There is increasing political and financial pressure on Housing
Associations to increase their housing delivery and this is
creating opportunities for private sector investors to participate
in the market. The Group's ability to provide forward financing for
new developments not only enables the Company to secure fit for
purpose, modern assets for its portfolio but also addresses the
chronic undersupply of suitable supported housing properties in the
UK at sustainable rents as well as delivering returns to
investors.
Triple Point Investment Management LLP (part of the Triple Point
Group) is responsible for management of the Group's portfolio (with
such functions having been delegated to it by Langham Hall Fund
Management LLP, the Company's alternative investment fund
manager).
The Company was admitted to trading on the Specialist Fund
Segment of the Main Market of the London Stock Exchange on 8 August
2017 and was admitted to the premium segment of the Official List
of the Financial Conduct Authority and migrated to trading on the
premium segment of the Main Market on 27 March 2018. The Company
operates as a UK Real Estate Investment Trust ("REIT") and is a
constituent of the FTSE EPRA/NAREIT index.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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