PRS Reit sees income, revenues spark

(Sharecast News) - The PRS Reit posted a jump in revenues and rental income on Tuesday, as the property firm moved towards a planned £646m takeover. Revenues at the real estate investment trust, which specialises in new build family homes for the private rental sector, rose 14% in the year to 30 June, to £66.5m.

Net rental income jumped 13% to £53.3m, while net asset value rose 7% to £785m, driven by strong growth in estimated rental value.

The number of completed homes stood at 5,478 as at 30 September, up 2%, while ERV was 11% higher.

Operating profits fell 13%, however, to £97.4m, while pre-tax profits were 18% lower at £77m, reflecting lower gains from fair value adjustments on investment profits of £53.6m compared to the prior year.

Geeta Nanda, chair, said it was a "very strong" performance, with rental income "materially" higher.

She continued: "Other measures of the portfolio's performance, including occupancy and rent collection, were also extremely encouraging, and its strong performance has continued into the new financial year."

Last month PRS Reit struck a non-binding deal to sell its entire portfolio of property assets to a fund backed by Waypoint Asset Management for around £646.2m.

Under the terms of the deal, proceeds to the company, net of transaction expenses and corporation tax, are expected to be around £633.2m.

PRS Reit confirmed it was targeting end of November for completion.

The firm launched a strategic review a year ago and attracted interest from US private equity giant KKR and UK property investor Long Harbour.

As at 0900 BST, shares in the FTSE 250 firm were largely flat at 111.8p.