TIDMSOHO
RNS Number : 5064W
Triple Point Social Housing REIT
18 April 2023
18 April 2023
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the
"Group")
Share Buyback Programme and Portfolio Property Sale
Further to the Company's Trading Update on 3 February 2023, the
board of Triple Point Social Housing REIT plc (the "Board") today
announces its intention to commence a share buyback programme (the
"Share Buyback Programme") and provides an update on the progress
of the sale of a portfolio of the Company's properties, subject to
market conditions and pricing.
The Company owns a portfolio of 497 properties across the United
Kingdom, focused on delivering Specialised Supported Housing, a
sector where there continues to be demand considerably in excess of
supply.
The Company's portfolio generates long-term, inflation-linked
cash flows which contributed to a 0.73% increase in Net Asset Value
to GBP439.3 million over the course of the year ended 31 December
2022. The Group held cash and cash equivalents of GBP30.1 million
at 31 December 2022 and GBP13.1 million of cash was available for
further investment.
The Board believes that the discount to Net Asset Value per
Ordinary Share ("NAV") at which the Company's shares currently
trade materially undervalues the Company and its portfolio.
Chris Phillips, Chair of the Company, said: "The Board and the
Company's Investment Manager remain focused on delivering value to
shareholders, and we are taking proactive measures to address the
persistent discount of the Company's share price compared to the
prevailing NAV. We expect the sale of a portfolio of properties,
subject to market conditions and pricing, to deliver shareholder
value and are confident that, at current share price levels, the
net impact of the Share Buyback Programme will be accretive to the
Company's NAV and will benefit dividend cover."
Share Buyback Programme
The Board is pleased to announce the commencement of a Share
Buyback Programme and believes that the programme will be accretive
to NAV and increase dividend cover.
The Board has instructed its corporate broker, Stifel Nicolaus
Europe Limited ("Stifel"), to purchase on behalf of the Company,
subject to market conditions, ordinary shares of the Company
("Ordinary Shares") pursuant to an initial buyback programme, with
a maximum aggregate consideration of up to GBP5 million. The
Company has entered into a non-discretionary mandate with Stifel to
repurchase the Ordinary Shares on the Company's behalf and to make
trading decisions under the Share Buyback Programme independently
of the Company within parameters set by the Board, until such time
that the initial GBP5 million consideration has been completed or
the Share Buyback Programme is otherwise terminated by the
Board.
Following the proposed property sale, subject to market
conditions and pricing, described below, the Company may seek to
allocate a proportion of the sale proceeds to the Share Buyback
Programme.
The Share Buyback Programme will be conducted in accordance with
the general authority to repurchase Ordinary Shares, previously
granted by the Company's shareholders at the 2022 Annual General
Meeting (the "2022 Authority") and to be sought at the 2023 Annual
General Meeting (the "2023 Authority"). The details of the 2022
Authority can be found on the Company's website at
https://www.triplepointreit.com/investors/72/. The maximum number
of Ordinary Shares that the Company is authorised to purchase under
the 2022 Authority is 40,278,900. Upon expiry of the 2022
Authority, the maximum number of shares that the Company shall be
authorised to purchase will be such number of Ordinary Shares as
stated in the 2023 Authority.
Portfolio Property Sale
The Board and the Investment Manager confirm that, following a
competitive adviser selection process, CBRE has been appointed to
market a portfolio of the Company's properties.
The Board will now seek to conclude a sale, subject to market
conditions and pricing, which is deemed to deliver value to
shareholders. Should any sale proceed, the Board will look to
return capital to shareholders through an extension of the Share
Buyback Programme described above.
ENDS.
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
Madison Kominski
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.
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END
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