PRS REIT’s profit has fallen by 48% despite rental income climbing by 20%.
Announcing its results for the six months to the end of December, the REIT, which owns 4,980 homes, said it pulled in £19.6m in net rent over the period from a total rent roll of £50.7m.
However, operating profit was down 48% to £22.7m and profit after tax was down 62% to £14.7m. As a result basic earnings per share fell by 64% to 2.7p.
The REIT said the slump reflected the difference in gains from fair value adjustments on its investment property, which were £5.8m over the six months but £31m for the comparative period in 2021.
Non-executive chair Steve Smith said: “Demand, affordability, occupancy levels and rent collection are all high and arrears remain low.”
He added that the REIT expects to reach 5,000 homes by the end of March.
“Once delivery is fully complete, we expect the portfolio to comprise around 5,600 homes, with an estimated rental value of £58m per year.”
Smith said: “Market factors remain strongly in our favour, and our sector – single-family rental – is very robust. This reflects lack of supply, strong rental growth, and the benefit of multiple individual counterparties, which reduces concentration risk. Our homes are affordable for ordinary families up and down the country and we remain very confident of prospects for the PRS REIT.”
The REIT has appointed Metropolitan Thames Valley Housing chief executive Geeta Nanda as senior independent director. She joined the board as a non-executive director in March 2021.
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