Triple Point Social Housing REIT Portfolio Update - Highstone Housing Association (2420F)
November 03 2022 - 7:31AM
UK Regulatory
TIDMSOHO
RNS Number : 2420F
Triple Point Social Housing REIT
03 November 2022
3 November 2022
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the
"Group")
Portfolio Update - Highstone Housing Association
The Board of Triple Point Social Housing REIT plc (ticker: SOHO)
notes the Regulatory Notice published today by the Regulator of
Social Housing (the "Regulator") in relation to Highstone Housing
Association ("Highstone"). This follows the Regulator's ongoing
review of the specialised supported housing sector which the Board
welcomes, bringing as it does, higher levels of accountability and
transparency.
Highstone, a registered provider focused on the supported
housing sector, has recently been subject to a review by the
Regulator, resulting in Highstone being deemed non-compliant with
regards to elements of the Governance and Financial Viability
Standard. This reflects the Regulator's desire to see Highstone
demonstrate improvement in the areas of governance, business
planning and risk management. As Highstone had fewer than 1,000
social housing units under management based on the most recent
statistical data return, no formal rating was given by the
Regulator.
As at 30 June 2022, Highstone represents 4.2 per cent of the
Group's current portfolio value and 3.7 per cent of the Group's
rent roll. All rent payable under the leases with the Group
continues to be paid in full.
The Group's investment manager, Triple Point Investment
Management LLP (the "Manager") has an established relationship with
Highstone and is in regular dialogue with the housing association,
particularly with regard to the regulatory review. The Company
notes that Highstone has committed to work with the Regulator to
address the issues outlined in this Regulatory Notice and had
already implemented certain changes, prior to regulatory
engagement.
The Manager has liaised with the Group's independent valuer,
Jones Lang LaSalle Limited, who has confirmed that there should be
no material impact on the value of the Group's property portfolio
as a result of the Regulatory Notice.
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
Triple Point Investment Management Tel: 020 7201 8989
LLP
(Investment Manager)
Max Shenkman
Isobel Gunn-Brown
Akur Capital (Joint Financial Adviser) Tel: 020 7493 3631
Tom Frost
Anthony Richardson
Siobhan Sergeant
Stifel (Joint Financial Adviser Tel: 020 7710 7600
and Corporate Broker)
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
majority of the assets within the portfolio are subject to
inflation-linked, long-term, 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 a 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 pressure and social need to
increase housing supply across the UK which is creating
opportunities for private sector investors to help deliver this
housing. The Group's ability to provide forward funding 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.
The Company is a UK Real Estate Investment Trust ("REIT") listed
on the premium segment of the Official List of the UK Financial
Conduct Authority and is a constituent of the FTSE EPRA/NAREIT
index.
Additional information on regulation
The Specialised Supported Housing sector is regulated by the
Regulator who carries out assessments on registered providers
either through a scheduled In-depth assessment ("IDA") or reactive
engagement. When a registered provider passes the 1,000-unit
threshold, it automatically becomes subject to a detailed IDA by
the Regulator. The IDA assesses compliance with the requirements of
the Governance and Financial Viability Standard. The outcome of an
IDA results in the Regulator publishing a formal grading (V 1-4 for
Viability and G 1-4 for Governance, where V1-2 and G1-2 are
considered "compliant" ratings, and V3-4 and G3-4 are considered
"non-compliant" ratings), known as a regulatory judgement.
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END
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