Triple Point Social Housing REIT (SOHO) was listed as recently as August 2017 – after being incorporated just two months earlier – with a view to building a portfolio of newly developed social housing assets with an emphasis on supported housing.
Progress has been impressive in that short time, with the portfolio valued at an 8.53 per cent premium to its aggregate purchase price. In the six months to June 2018 the group acquired 51 assets, and since flotation it has bought 167 properties costing £175m. A majority of the assets are located in the Midlands and northern England, although an increased proportion of recent acquisitions have been made in the south of England. The existing portfolio comprises 100 leases with 12 approved providers, with an average unexpired lease term of 29 years. All the rental income is linked to inflation.
After the half-year-end, the group spent around £46.9m on 41 supported housing properties, and proceeds from a £68.5m loan note secured in July are expected to be fully committed by the end of October. A further equity raise will be announced shortly.
Triple Point also entered its first forward funding transaction on a site in Bradford, and since then has acquired a further seven forward-funded sites. These allow it to work with approved providers and local authorities to meet local demand.
| TRIPLE POINT SOCIAL HOUSING REIT (SOHO) | ||||
| ORD PRICE: | 108p | MARKET VALUE: | £266m | |
| TOUCH: | 106.5-108p | 12-MONTH HIGH: | 110p | LOW: 99p |
| DIVIDEND YIELD: | 3.2% | DEVELOPMENT PROP: | nil | |
| PREMIUM TO NAV: | 6% | |||
| INVESTMENT PROP: | £191m | NET CASH: | £16.7m | |
| Half-year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017** | 101 | 5.7 | 3.9 | - |
| 2018 | 102 | 6.0 | 3.0 | 2.5* |
| % change | +1 | +7 | -23 | - |
| Ex-div: | 23 Aug | |||
| Payment: | 28 Sep | |||
| *XD and pay dates refer to 1.25p second-quarter dividend **Figures from 12 Jun to 31 Dec 2017 | ||||
