PRS REIT reports rents remain strong

In their update for the quarter to 31 December 2023, PRS REIT plc, an investment trust that invests in high-quality, new build, family homes in the private rented sector, reported:

Rental demand for the Company’s homes remains very high, reflected in very strong rental growth and occupancy rates.  Occupancy at 31 December 2023 stood at 97% with 5,087 of the 5,264 completed homes occupied. A further 47 homes were reserved for applicants who    had passed referencing and paid rental deposits, giving an occupancy rate of 98%. Like-for-like rental growth for the 12 months to 31 December 2023 was 11% (2022: 6%).

Rent collection (defined as rent collected in the period relative to rent invoiced in the same period) for the quarter ended 31 December 2023 was extremely robust at 99%. Arrears were low at £0.6 million at 31 December 2023 (31 December 2022: £0.7 million).  This represents c.1% of annualised ERV on completed units.

Affordability, which is average rent as a proportion of gross household income, continues to be well within Homes England’s upper guidance limit of 35%. Reflecting the tenant base, where average household income has increased, the Company’s homes have an affordability ratio of c.22% of gross household income at 31 December 2023 (30 September 2023: 22%).

 

 

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