Profit at PRS REIT has plunged by two-thirds despite a healthy rise in revenue.
The single-family rental REIT, which has a portfolio of 5,219 completed homes, reported revenue of nearly £50m for the year to the end of June, up 18% on 2022. Rental income was also up 17% to £40m.
However, profit before tax fell by 63% to £42.5m, down from £116m the previous year.
Profit was hit by a fall in the gain from the fair value adjustment on investment property, which “reduced significantly, as expected”, to £25.4m from £100m last year.
The drop reflected the combined impact of ERV and average net investment yield movements.
Operating profit decreased by 54% to £59m, reflecting the decrease in gains from fair value adjustments on investment property.
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