PRS REIT posts double-digit increase in rents

PRS REIT achieved rental growth of 11% in the three months ended 31 December, largely in line with the growth it has seen over the past 12 months. The investor in private rented family homes, which put itself up for sale in October last year following shareholder pressure, said market fundamentals for the business remained favourable, with the “significant shortage” of single-family rental homes in the UK setting the business up for success. The firm said it had a portfolio 5,437 homes at the end of 2024, delivering an estimated rental value of £68.7m per annum. A remaining 41 homes currently under construction will add an additional £400,000 of ERV. They are set to complete before the end of June. Rent collection for the period was 99% and physical occupancy at 31 December 2024 was 96%, with 5,232 of the 5,437 completed homes occupied. Total arrears net of bad debt provision at 31 December 2024 was £1m, which PRS REIT said was low as a proportion of the enlarged portfolio. The firm added that  it continued to be in “active discussions” with a number of interested parties in relation to a sale of the business and that it was also exploring all options available to it to maximise shareholder value. It expects to update further in the first quarter of this year.