30 September 2024
The PRS REIT plc, the closed-ended real estate investment trust that invests in high-quality, new build, family homes in the private rented sector, is pleased to confirm that the Company has joined the FTSE 250 Index today.
This landmark event reflects the success of the Company’s pioneering model, launched at IPO in 2017, to establish a delivery mechanism for the creation and management of a national scale portfolio of high-quality, new-build rental homes for the private rented sector. The model has resulted in the successful establishment of the UK’s largest build-to-rent portfolio of single family homes, with over 5,400 homes completed, mostly across the major regions of England (excluding London). From the outset, the ambition was to offer desirable homes supported by a new, higher standard of customer care that would also foster a sense of community across developments. Sigma Capital Group was the architect of the PRS REIT, and its subsidiary, Sigma PRS Management Ltd, is the Investment Adviser, responsible for the delivery and asset management of the Company’s portfolio.
The current portfolio is expected to be completed in the first quarter of calendar 2025 and will total around 5,600 homes with an estimated rental value once fully let of c. £66.5m*. The portfolio provides much needed new housing to families and individuals across the country, with an affordability ratio (measured as average rent as a proportion of gross household income) of 23%*, well within the guidance established by Homes England, which is that rents should be less than 35% of tenants’ gross household income. The portfolio also provides investors with a stable, long-term yield, with potential for uplifts and for capital appreciation.
*as announced on 18 July 2024
Steve Smith, Chairman of The PRS REIT plc, commented:
“The PRS REIT’s entry into the FTSE 250 Index is a significant landmark and could not have been achieved without the backing of our stakeholders, including investors, banking and housebuilder partners, supporters in government and Sigma Capital Group. The UK’s lack of quality rental housing remains an acute problem, and we are proud to have successfully pioneered a new approach for delivering modern family housing at scale and to have created the largest single family build-to-rent portfolio in the UK.”
