Social Housing Reit (SOHO) H2 2025 earnings summary

Executive summary

• Achieved a 21% increase in adjusted earnings year-over-year, reflecting strong operational and financial performance.

• Net rental income increased by 12% year-over-year to £40.0m for the twelve months ended 31 December 2025.

• Portfolio optimization and asset management initiatives have stabilized the business, resolved historic tenant issues, and renewed investor confidence.

• The company is positioned for accretive growth, focusing on shareholder value, diversification, and sector expansion.

Financial highlights

• Net rental income rose 12% year-over-year, driven by inflation-linked uplifts and asset management, reaching £40.0m.

• Adjusted EPS reached GBP 0.653 per share; adjusted EPRA earnings were £25.7m, up from £21.2m.

• Overheads decreased 35% to GBP 7.6 million, mainly due to a 25% reduction in management fees.

• Dividend cover reached 1.17x, fully covering the dividend for the first time since IPO.

• EPRA NTA decreased from GBP 0.995 to GBP 0.9423 per share due to valuation movements and property markdowns.

Outlook and guidance

• Rental growth for 2026 is locked in, with most rent reviews based on September 2025 CPI of 3.8%; 100% of leases are inflation-linked and 86% uncapped.

• Fixed cost of debt at 2.74% and weighted average term of 7.6 years provide stability against rising rates.

• Exploring growth through diversification into adjacent living sectors and portfolio acquisitions, provided they are earnings accretive and inflation-linked.

• Plans to improve cash flow quality by implementing ring-fenced bank accounts for rents.