SOHO Triple Point Social Housing Reit Plc

20 August 2024

Triple Point Social Housing REIT plc

(the "Company" or, together with its subsidiaries, the "Group") 

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Lease Transfer 

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Further to the "Portfolio Sale and Lease Transfer" announcement made on 3 May 2024, the Board of Directors of Triple Point Social Housing REIT plc (ticker: SOHO) is pleased to announce the transfer of all 38 properties previously leased to Parasol (representing 8.2% of the Company's Gross Asset Value and 9.7% of the rent roll as at 31 March 2024) to Westmoreland Housing Association ("Westmoreland").

The transfer completed on 19 August and, up to the point of transfer, Parasol continued to pay rent in accordance with the existing creditor's agreement, being 60% of full lease rent. Following the completion of the transfer, we expect rent collection to increase to between 75% to 85% of existing FRI lease rent during an initial stabilisation period (expected to last approximately 12 months), and thereafter up to at least 90% of existing FRI lease rent. In turn, this will help ensure that dividends paid by the Company are fully covered.

The transfer is the culmination of an extensive four-month process focused on prioritising the welfare of residents, enabling proactive engagement with the Regulator by both Parasol and Westmoreland, and ensuring the transfer was undertaken in a way that maximised rental income. As well as increasing rent collection, the Board is confident that Westmoreland will provide good services to residents in the Group's properties.

Westmoreland manages 950 specialised supported housing homes. The current management team was appointed in 2020 and has successfully restructured Westmoreland, delivering four years of annual surplus and growing turnover in a sustainable way to over £15 million per annum whilst steadily increasing Westmoreland's cash position.

Chris Phillips, Chair of Triple Point Social Housing REIT, commented:

"Having successfully completed the transfer of properties, we look forward to working closely with Westmoreland to ensure that rent collection is increased and good services continue to be delivered to the properties' residents."

ENDS.

FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:

The Company's LEI is 213800BERVBS2HFTBC58.

Further information on the Company can be found on its website at www.triplepointreit.com.

NOTES:

The Company invests in primarily newly developed social housing assets in the UK, with a particular focus on supported housing. The majority of the assets within the portfolio are subject to inflation-linked, long-term, Fully Repairing and Insuring ("FRI") leases with Approved Providers (being Housing Associations, Local Authorities or other regulated organisations in receipt of direct payment from local government). The portfolio comprises investments into properties which are already subject to a lease with an Approved Provider, as well as forward funding of pre-let developments but does not include any direct development or speculative development.

The Company was admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange on 8 August 2017 and was admitted to the premium segment of the Official List of the Financial Conduct Authority and migrated to trading on the premium segment of the Main Market on 27 March 2018.  The Company operates as a UK Real Estate Investment Trust ("REIT") and is a constituent of the FTSE EPRA/NAREIT index.