Established private rented sector (PRS) developer The PRS REIT, has revealed the addition of 768 new homes to their portfolio in the 2019 fiscal year (FY).
As revealed in their End of Year results published earlier this morning, the residential focused PRS developer has seen an exponential amount of growth across its business when compared to the FY 2018 with operational profit rising 441% to £14.6m this year (£2.7m FY ’18).
Commenting on the tremendous progress made within the FY, Steve Smith, Chairman of the PRS REIT, said: “The PRS REIT made good progress over its second year of activity, and our portfolio of newly-built family rental homes increased by 768 to 1,173 by the year-end, with a further 3,200 or so homes under construction across 37 sites. The pace of completions continues to accelerate, and we have since the year-end completed a further 178 homes, taking our total to 1,351.
“Within the next few months, the remainder of the company’s £900m of gross funds will be deployed. When the last house is completed, this will take the PRS REIT’s portfolio to some 5,400 homes in 75 sites across the major regions of England, and should provide an ongoing dividend of 5.5p per annum.
Financially, PRS REIT saw a +233% change in revenue (£6.0m vs £1.8m) as well as a +356% increase in profit after tax (£14.6m in FY ’19 vs £3.2m in FY ’18).
According to the information presented in the report, PRS REIT completed 1,173 homes (405 in FY ’18), representing a +190% change, with an estimated rental value of £10.7m per annum(p.a.) vs the £3.6 p.a. in the previous fiscal year.
As of June 30 2019, PRS REIT has completed 17 sites (5 completed in FY ’18) which represents a +240% change. The current gross development cost of the completed sites sits at £145m.
During FY ’19 PRS REIT boasts 3,196 contracted homes with an estimated value of £30.5m p.a. However, despite these figures, the company understands that there remains a ‘critical supply shortage’ in the face of the rising demand for high-quality family rental houses.
Commenting on the lack of supply, Chairman Smith added: “Family rental homes remain critically undersupplied throughout the UK, and The PRS REIT is playing a part in addressing this need, bringing high quality, professionally-managed homes to middle-income families. Whilst there is political uncertainty, the Board believes that the Company is in good shape and remains on track to achieve both its short and long-term goals.”
Update: This article was updated on Thursday 26th September to clarify figures belong to The PRS REIT