Rent collection rises at Triple Point as social housing REIT explores £20m portfolio sale
Triple Point Social Housing REIT said that rent collection had increased in the first quarter of the year as it confirmed that it agreed terms on a portfolio sale.
In a trading update covering a range of topics, Triple Point said it had agreed terms on a portfolio sale worth more than £20m.
It said the sale is “representative of the Company’s wider portfolio and contains a range of both new build and adapted properties as well as self-contained and shared homes”, but did not give any further details.
The firm also provided an update on rent collection in the first quarter. Rent collection increased to 93.3 per cent at the end of March, up from 90.2 per cent at the end of December.
25 out of the company’s 27 lessees are in “no material rental arrears”, Triple Point said.
Higher rent collection has been complemented by continued rental growth. By the end of April 61.6 per cent of Triple Point’s leases had put through their 2024 rent increase at a weighted average uplift of 6.1 per cent.
Triple Point provided an update on its dealings with two of its tenants, My Space and Parasol, both of which are in arrears.
Regarding Parasol, Triple Point said: “The Investment Manager has commenced a process of transferring all of the Group’s properties currently leased to Parasol to Westmoreland, representing 9.6 per cent of rent roll.”
This process is on track to complete before the company’s interim results in September.
Triple Point said it continues to engage with My Space’s management team on their turn-around plan. It noted that rent collection at My Space is expected to increase over the course of the year.
“If an acceptable long-term position cannot be reached with My Space, which represents 8.1 per cent of rent roll, then, as with Parasol, the Investment Manager will move leases to one or more alternative registered providers,”