TIDMSOHO
RNS Number : 1822P
Triple Point Social Housing REIT
08 June 2020
8 June 2020
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the
"Group")
UPDATE ON ACQUISITIONS AND TRADING
The Board of Triple Point Social Housing REIT plc (ticker: SOHO)
is pleased to announce the following updates:
-- The Group completed the acquisition of a further seven
properties (comprising 40 individual units) for an aggregate
consideration of approximately GBP7.6 million (excluding
acquisition costs)
-- As at 5 June 2020, 100% of rent due for April 2020 was
received and 95% of the rent due for May 2020 had also been
received, with the balance expected to be received within the next
two weeks
-- Jones Lang LaSalle, has advised the Company that it is
removing the material uncertainty clause in its valuations,
reflecting the continued timely receipt of rents in line with
pre-COVID 19 levels and the level of activity within the
specialised supported housing sector
-- The Company now has a look-through dividend cover of 95%, as
measured on an EPRA earnings run-rate basis(1) , and a strong
pipeline of further investment opportunities to deploy its
remaining available funds
Acquisitions Update
The Group has completed the acquisition of seven supported
housing properties, comprising 40 individual units in total, for an
aggregate consideration of approximately GBP7.6 million (excluding
acquisition costs). The properties are located in the North West (7
units), Yorkshire (11 units), the East (5 units), London and the
South East (8 units) and the South West (9 units).
The Group has entered into new FRI leases in respect of each of
the properties acquired for periods of between 20 and 25 years.
These leases are with specialist housing associations regulated by
the Regulator of Social Housing, including Blue Square Residential,
Falcon Housing Association, Inclusion Housing and Parasol
Homes.
The rents received under these leases are subject to annual,
upward-only rent reviews, increasing in line with the Consumer
Price Index.
The properties comprise specialist, high quality homes for
individuals with mental health and other support and care
needs.
The properties generate net initial yields in line with the
Company's existing portfolio.
Rental Collection and Dividend Cover
The Group continues to receive rents on a timely basis and in
line with both expectations and the experience in prior years. As
at 5 June 2020, 100% of rent due for April 2020 was received and
95% of rent due for May 2020 had also been received, with the
balance expected to be received within the next two weeks.
With the inflation-linked rental increases agreed in April
(announced on 14 April 2020) underpinned by consistent receipt of
rents, completion of developments and acquisitions since the
beginning of the year, including those announced today, and
accounting for income on exchanged and forward funded properties,
the Company now has a look-through dividend cover of 95% as
measured on an EPRA earnings run-rate basis(1) .
Removal of Material Uncertainty Clause
On 2 June 2020, RICS published revised guidance for the use of
material uncertainty clauses for valuations of specialised
supported housing. The Group's independent valuer, Jones Lang
LaSalle Limited, no longer considers that there is material
uncertainty when valuing specialised supported housing of all types
on the basis of Market Value. The removal of the material
uncertainty clause reflects the continued timely receipt of rents
in line with pre-COVID 19 levels and the level of activity within
the sector which remains consistent.
Note:
1 Including revenue from operational and exchanged and forward funded properties
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
Akur Capital (Joint Financial Adviser) Tel: 020 7493 3631
Tom Frost
Anthony Richardson
Siobhan Sergeant
Stifel (Corporate Broker and Joint Tel: 020 7710 7600
Financial Adviser)
Mark Young
Mark Bloomfield
Rajpal Padam
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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