PRS REIT has revealed a set of strong results as the trust gears up for a strategic review following a shareholder row.
The real estate investment trust reported an 11 per cent uplift in the value of its underlying assets, as rental income on its private housing portfolio surged 12 per cent on a like-for-like basis.
Revenue, which comes entirely from the properties that PRS REIT rents out, increased by 17 per cent year-on-year to £58.2m.
The trust’s operating profit jumped 90 per cent to £111.7m, and profit after tax grew by 120 per cent to £93.7m, with its shares jumping more than one per cent upon market open.
PRS REIT’s portfolio of completed homes also grew from 5,080 to 5,396, with a further 180 homes under construction at the time the results were finalised (30 June).
A shareholder battle erupted over control of the trust a month ago, with it facing calls from a group of investors, including Waverton Investment Management and CCLA Investment Management, to replace chair Stephen Smith and adjust its strategy.
Smith has now said he will step down at the trust’s annual general meeting, and a review of the options open to the company is set to be conducted by the new board, which now includes former Hipgnosis chair Robert Naylor and City grandee Christopher Mills.
Outgoing chair Smith said: “These are truly excellent numbers reflecting the efficacy of the strategy and the hard work and commitment of the board, our investment adviser, Sigma, our investors, banking and housebuilding partners, and local and central government supporters.
“To be in position to deliver a set of results of this quality after so many obstructions along the way, notably Covid and debt cost inflation, is a great achievement. The company is perfectly poised for its next phase of growth; investors are in a very strong position, with multiple options and, on a personal note, I sincerely hope that investors grasp the opportunity to enable the business to achieve its full potential.
“In line with our announcement issued on 13 September, the newly-constituted board intends to review the company’s strategy and will provide an update when appropriate. The company is fully focused on maximising value for all shareholders.”