The PRS REIT (PRSR) H2 2024 earnings summary

Executive summary

• Largest UK single-family build-to-rent REIT, with 5,425 completed homes and 72 sites as of 30 Sept 2024, targeting c.5,600 homes and £69.1m ERV p.a. upon full completion.

• Portfolio nearly fully delivered, with strong rental income growth, high occupancy (98%), and robust cost control.

• Dividend fully covered from March 2024, with potential for increase as EPS coverage and income rise.

• Board changes post-requisition event, with strategy under review and focus on value maximisation for shareholders.

Financial highlights

• FY24 revenue £58.2m (+17% YoY), net rental income £47.3m (+18%), operating profit £111.7m (+90%), profit before tax £93.7m (+120%).

• Basic EPS 17.1p (+122%), EPRA EPS 3.7p (+19%), net assets £731m (+11%), IFRS/EPRA NTA per share 133.2p (+11%).

• Valuation uplift of £73.4m driven by ERV growth, despite yield softening to 4.59% (from 4.47%).

• Total FY24 dividend 4p per share, fully covered on a run-rate basis.

Outlook and guidance

• Prospects remain very positive, with strong portfolio performance and supportive macroeconomic factors.

• Opportunity for potential dividend increase, subject to strategic review.

• Strategy under review post-requisition event; all options open to maximise shareholder value.