PRS REIT (LSE:PRSR) announced a solid performance for the financial year ended June 30, 2025, with net rental income rising 13% to £53.3 million and net tangible asset value (NTA) increasing 7% to 143p per share.
The company successfully completed its construction program, delivering the final 82 homes and bringing its total portfolio to 5,478 completed properties. The portfolio’s estimated annual rental value now stands at £72 million, marking the full transition from development to income generation.
Adjusted EPRA earnings per share climbed 19% to 4.4p, narrowly exceeding the dividend payout of 4.3p, which equates to a 3.8% yield. PRS REIT also guided for a 2026 dividend of 4.5p per share, reflecting confidence in sustained income growth.
Operational performance remained robust, with rent collection near 100%, occupancy at 96%, and like-for-like rental growth of around 9%. The gross-to-net ratio held steady at 20%, underscoring efficient property management.
Financially, the group strengthened its balance sheet, reducing its loan-to-value ratio to 35%. The average borrowing cost stood at 3.8% over a 14-year term, comfortably below the average net investment yield of 4.66%, supporting a healthy interest coverage profile.
As announced on September 17, 2025, PRS REIT has entered into non-binding heads of terms for the proposed sale of its portfolio to Waypoint Asset Management Limited. The expected net proceeds, after expenses and taxes, are estimated at £633.2 million.
At the current share price of 112p, the stock trades at a 19% discount to its net tangible asset value, which totaled £785 million at the end of the fiscal year.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply