Triple Point Social Housing REIT

LSE: SOHO

Market Cap£278m

Last Close 69p

Triple Point Social Housing REIT (SOHO) invests in primarily newly built and newly renovated social housing assets in the UK, with a particular focus on supported housing. SOHO aims to provide a stable, long-term inflation-linked income with the potential for capital growth.

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Investment summary

In H122, index linked rent increases and acquisitions supported a continuation of consistent positive returns and the resilience of Triple Point Social Housing REIT’s (SOHO’s) business model has been underlined by the re-affirmation of its investment grade credit rating. Borrowings are long term and at fixed rates and provide scope for further external growth. H122 NAV per share increased 3.2% and including DPS paid the accounting total return was 5.8%. DPS declared of 2.73p leaves SOHO on track to meet its 5.46p (+5%) annual target, with DPS fully covered on an EPRA earnings run-rate basis. For tenants, most costs of providing specialised supported housing are reimbursed by government, but not all, for which inflation is a challenge. If adopted, a cap on social housing rent increases would compound the inflationary pressures on operator lessee margins but SOHO’s revised investment policy provides it with additional flexibility to manage the effects.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2020A 28.9 22.3 16.6 4.61 15.0 10.2
2021A 33.1 26.2 19.4 4.82 14.3 11.3
2022E 37.2 29.0 18.6 4.62 14.9 9.3
2023E 39.1 31.1 22.7 5.63 12.3 8.9
Industry outlook

Private capital remains crucial in meeting the current and future needs for care based social housing. It is widely recognised to improve lives in a cost-effective manner compared with the alternatives of residential care or hospitals.

Last updated on 30/11/2022
Content on Triple Point Social Housing REIT
Triple Point Social Housing REIT – Well positioned for growth
Real Estate | research Outlook | 4 May 2022
CornmillHouse-189
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Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 4.2 (17.3) (27.0)
Relative* (2.4) (19.9) (29.0)
52-week high/low 98.3p/63.0p
*% relative to local index
Key management
Isobel Gunn-Brown CFO
Ben Beaton Managing partner
Gregory Banner Investment manager
James Cranmer Managing partner