Triple Point Social Housing sells four properties roughly in line with book value

investmentweek.co.uk:

The properties were sold at a gain of £663,136 (9.6%) against the purchase price and comprise a range of property types, lessees and care providers.

In a stock exchange notice today (1 September), the board said the assets had been sold to a private UK real estate investment firm for £7,586,600, which is only marginally (c.4%) lower than the aggregate book value of £7,870,000 at 30 June. 

The properties were sold at a gain of £663,136 (9.6%) against the purchase price and comprise a range of property types, lessees and care providers. At 30 June, the assets had a blended net initial yield of 5.75% and weighted average unexpired lease term (WAULT) of 19.3 years. 

Following the release of the REIT's interim results due on 7 September and consultation with shareholders, the Board will determine the best use of sale, which may include the repayment of debt and/or the return of capital to shareholders through further share buybacks.

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Chris Phillips, chair of the Group, said: «The Board is very pleased to have completed the sale of this portfolio of properties for a gain against purchase price and principally in line with its book value. 

»The sale demonstrates continued liquidity, and the resilience of valuations in the specialised supported housing sector."

The intention to explore the sale of a portfolio of properties to fund a capital return to shareholders was first announced in February. Numis analyst Andrew Rees said that, seven months later, shareholders might have been hoping for a more «meaningful» realisation than four assets.

However, he said that given the concerns over valuation, particularly in the wake of nearest peer Civitas Social