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.
Specialised social housing/care-based social housing is widely recognised to improve lives in a cost-effective manner compared with the alternatives of residential care or hospitals. Most providers/lessees are responding positively to regulatory activity by enhancing operational performance, financial strength and governance structures, all positive for sector sustainability.
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Outlook
Ben Beaton
Managing partner
Gregory Banner
Investment manager
Isobel Gunn-Brown
CFO
James Cranmer
Managing partner
Forecast net debt (£m)
231.4
Forecast gearing ratio (%)
57850
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 1.8 | 4.3 | 29.9 |
Relative | (1.0) | (2.4) | 23.8 |
52 week high/low | 64.9p/45.1p |
The FY23 results published in March showed a robust financial performance. EPRA EPS increased 3% but adjusted EPS (now including the impact of lease incentives) was 5% lower and covered the unchanged DPS of 5.46p by 0.85x. Benefiting from inflation-linked rental growth and improving rent collection (from 90% in 2023), DPS is once again covered on a run-rate basis as progress continues with the two (of 27) underperforming tenants. Parasol is paying all monthly rents due under its creditor agreement, extended for a further six months, and SOHO expects to conclude a creditor agreement with My Space by end-H124. Rental growth and the essential nature of the assets supported property valuations and NAV per share increased 4% to 113.8p. Including DPS paid, the accounting total return was 9.3%, its highest level since listing.
Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 37.4 | 27.5 | 19.3 | 4.78 | 12.8 | 9.6 |
2023A | 39.8 | 27.0 | 19.5 | 4.92 | 12.4 | 9.4 |
2024E | 41.4 | 32.0 | 24.4 | 6.20 | 9.8 | 8.2 |
2025E | 42.7 | 33.2 | 25.6 | 6.51 | 9.4 | 7.5 |