Triple Point reports improved rent collection in first quarter

10th Jun 2024 07:49

(Sharecast News) - Triple Point Social Housing REIT reported a robust performance in the first quarter on Monday, with a significant increase in rent collection and ongoing rental growth.

As of 31 March, rent collection rose to 93.3%, up from 90.2% in December, while 25 of the company's 27 lessees showed no material rental arrears.

By 30 April, 61.6% of the group's leases had implemented their 2024 annual rent increase, averaging a 6.1% uplift.

The London-listed real estate investment trust also announced heads of terms for a portfolio sale exceeding £20m.

The portfolio included new build and adapted properties, as well as self-contained and shared homes, with EPC ratings ranging from B to D.

It was expected to finalise before the interim results for the six months ending 30 June are published in September.

Regarding tenant updates, the investment manager was transferring all properties leased to Parasol, representing 9.6% of the rent roll, to Westmoreland.

The transfer was on track for completion before the interim results, with Parasol continuing to pay rent per the existing agreement.

It said it was also working with My Space's new independent board members on a turnaround plan.

My Space, which accounts for 8.1% of the rent roll, was expected to improve rent collection throughout the year.

If a satisfactory long-term arrangement was not reached, the investment manager said it would consider transferring leases to other registered providers.

Reporting by Josh White for Sharecast.com.