Triple Point Social Housing is looking to raise £200m in a share issue to target a “strong pipeline of investment opportunities.”
The REIT, which listed on the London Stock Exchange last August with a £200m IPO, has so far invested £179.2m of its capital into a portfolio of 148 supported housing properties for older or vulnerable people across the UK.
At the time of the IPO, Triple Point said it planned to deploy its capital within nine months, targeting properties with a net initial yield of 6%.
In its announcement yesterday, the company said: “Given the strong pipeline of investment opportunities identified by the delegated investment manager, the board believes it would be in shareholders’ best interest to grow the company and believes that it is an apt time for the company to raise further equity.”
Triple Point also said it is looking to secure a debt facility between £50-70m with one or more institutional lenders at a LTV of up to 40% and a term of 10 years.
Alongside these announcements, the company reported its first results from the period between incorporation on 12 June to 31 December 2017, including earnings per share of 3.94p and a rental income of £7.8m.
Christopher Phillips, chairman of Triple Point, said: “The market fundamentals remain strong, epitomised by a stark undersupply and strong central and local government support for supported housing.
“We are therefore optimistic about the performance of our existing portfolio and our ability to deliver on the pipeline of assets that have already been identified for 2018.”
To send feedback, e-mail karl.tomusk@egi.co.uk or tweet @ktomusk or @estatesgazette
