Triple Point Social Housing pauses buybacks until further property sales secured
At the start of September, the trust announced the sale of four specialised supported housing properties for £7.5m to a private UK real estate investment firm.
In a stock exchange notice today (13 November), the board said that given the trust's cash position, any further share buybacks would be limited to £5.75m, and would have a negative impact on leverage.
Therefore, SOHO said that any more return on capital would be dependent on significant additional liquidity being generated from asset sales, which the trust said will rely on market conditions.
At the start of September, the trust announced the sale of four specialised supported housing properties for £7.5m to a private UK real estate investment firm, with the proceeds used to repay debt or for further share buybacks.
Triple Point Social Housing sells four properties roughly in line with book value
In April this year, the trust said it would be undertaking a share buyback programme of up to £5m, which was completed in June. According to the Association of Investment Companies, SOHO is currently trading at a 54% discount to net asset value.
As of a full valuation at the end of September, Triple Point Social Housing's NAV per share was 109p, down 2.2% from 111p at the end of June.
This followed an outward expansion in yields of 16bps to 5.84%, which reflected wider market conditions and write-downs for properties currently occupied by tenants My Space and Parasol.
SOHO said that material rent arrears are limited to two providers. For Parasol, the trust said a creditor agreement was in place, and it was now paying all monthly rent due under the agreement.
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A creditor agreement with My Space was
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