PRS REIT PLC on Wednesday reported higher half-year profit amid growth double-digit percentage growth in rental income, and it maintained a positive outlook as rentals remain in high demand.
The Manchester, England-based real estate investment trust said rental income for the first six months of the financial year ending on June 30, grew 16% to £28.1 million from £24.2 million a year before. This reflected growth in the number of completed and let homes, as well as increased rental levels, the PRS explained.
Pretax profit doubled to £30.3 million from £14.7 million as a result.
PRS left its interim dividend unchanged at 2.0 pence per share. Its total dividend target for financial 2024 remains at 4.0p per share, which would be the same as in financial 2023. It said this will be full covered by earnings.
Looking ahead, PRS said that between January 1 and March 8, 42 new homes were added to its portfolio, taking it to 5,306 completed homes with an estimated rental value of £61.7 million per year. A further 270 homes with an ERV of £2.5 million were under construction at March 8, it added.
PRS said rental demand ‘remains very strong nationally’ and is expected to ‘grow against a background of structural under supply, higher interest rates and continued cost-of-living pressures.’
Commenting on the results, Non-Executive Chair Steve Smith said: ‘The PRS REIT’s portfolio of high-quality, professionally managed, build-to-rent family homes has delivered another strong performance. Despite the continued pressure in the wider economy, I am pleased to report that occupancy levels, rent collection, affordability and demand have all remained at very high levels, whilst arrears continued to stay low. These factors have helped to drive the increase in cash generation and predictable income flows achieved in the period as our portfolio moves closer to completion.’
Shares in PRS were up 2.9% at 78.39 pence each in London on Wednesday morning.
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