Sparks - Living REIT

SOHO has announced that it is targeting an aggregate dividend per share of 5.79p for the current year to 31 December 2026 (FY26), a 3.0% increase on the 5.66p paid in FY25, which was the first uplift since FY22 and reflected the company’s improving operating and financial performance. A first quarterly DPS of 1.4475p has been declared and will be paid on or around 7 August 2026 to shareholders on the register on 10 July 2026. The ex-dividend date will be 9 July 2026. The dividend will be paid as a property income distribution.

With performance improving strongly, FY25 adjusted ‘cash’ earnings dividend cover of 1.17x and the prospect of continuing inflation linked rent uplifts, the outlook for further DPS growth was very positive. The announced FY26 target is in line with our forecasts and represents a yield of 8.0%.

SOHO has also secured a floating rate, £30m debt facility (with Barclays) that comprises a three-year £25m revolving credit facility and one-year fixed-term term loan of £5m, providing flexibility to complement its long-term fixed rate borrowings, with a remaining maturity of more than seven years, at a cost of 2.74%. With the FY25 results, the company indicated that following the improvements to operational and financial performance it was considering options for increasing the scale, diversity and growth potential of the company.