“Sigma’s revenues and pre-tax profits for the first six months of the current year exceed those of the whole of 2017, and pre-tax profit in the first half is over four times that of the same period last year. These very pleasing results reflect the successful launch, on 31 May 2017, of The PRS REIT plc (“the PRS REIT” or “the REIT”), the UK’s first REIT dedicated entirely to investment in newly-built rental homes.
As we previously reported, the REIT’s launch has fundamentally changed Sigma’s growth prospects and earnings profile, and has created a huge opportunity for the Group to cement its position as a leader in the Private Rented Sector (“PRS”). Sigma’s activities are now wholly focused on delivering the PRS REIT’s initial goal of creating 10,000 high quality new rental homes for middle-income families.
In the first quarter of the year, having fully committed the net proceeds of the PRS REIT’s £250m IPO funding to qualified PRS sites, we raised a further £250m (gross) through an equity placing of the REIT’s shares, and secured terms for £200m of debt facilities. An additional £200m of gearing is planned, which would take the REIT’s resources to c.£900m. This equates to approximately 5,700 new homes.
As at 30 September 2018, Sigma has c. £384m of completed and contracted development for the PRS REIT and a further £372m of committed expenditure. The total completed, contracted and completed development expenditure amounts to c. £756m and will provide an estimated rental value of (“ERV”) of c. £47m when built. This includes Sigma-funded sites under forward purchase agreements with the PRS REIT.
Accordingly, looking ahead over the remainder of the financial year and into 2019, Sigma is well-placed to make continuing substantial progress, and we expect 2019 to show significant value creation over and above 2018.”
Beware of Share Fraud
Fraudsters use persuasive and high-pressure tactics to lure investors into scams. They may offer to sell shares that turn out to be worthless or non-existent, or to buy shares at an inflated price in return for an upfront payment. While high profits are promised, if you buy or sell shares in this way you will probably lose your money.
5,000 people contact the Financial Conduct Authority about share fraud each year, with victims losing an average of £20,000.
How to avoid share fraud
- Keep in mind that firms authorised by the FCA are unlikely to contact you out of the blue with an offer to buy or sell shares.
- Do not get into a conversation, note the name of the person and firm contacting you and then end the call.
- Check the Financial Services Register from www.fca.org.uk to see if the person and firm contacting you is authorised by the FCA.
- Beware of fraudsters claiming to be from an authorised firm, copying its website or giving you false contact details.
- Use the firm’s contact details listed on the Register if you want to call it back.
- Call the FCA on 0800 111 6768 if the firm does not have contact details on the Register or you are told they are out of date.
- Search the list of unauthorised firms to avoid at www.fca.org.uk/scams.
- Consider that if you buy or sell shares from an unauthorised firm you will not have access to the Financial Ombudsman Service or Financial Services Compensation Scheme.
- Think about getting independent financial and professional advice before you hand over any money.
- Remember: if it sounds too good to be true, it probably is!
Report a scam
If you are approached by fraudsters please tell the FCA using the share fraud reporting form at www.fca.org.uk/scams, where you can find out more about investment scams.
You can also call the FCA Consumer Helpline on 0800 111 6768.
If you have already paid money to share fraudsters you should contact Action Fraud on 0300 123 2040.
In association with The Financial Conduct Authority