Triple Point Social Housing REIT today announced its intentions to sell £20m worth of its properties by the end of September.
The cash raised from these sales could help reinstate its share buyback programme, which it was forced to pause in November last year due to lack of funds.
This would be the second batch of sales in a year after the company sold four of its properties for £7.6m last August.
Shares in the £224m investment trust are currently trading at a 55.5% discount to its net asset value (NAV), so resuming buybacks would hope to shrink this.
The latest set of sales would be across a range of both new build and adapted properties, as well as self-contained and shared homes.
Triple Point also updated shareholders today on two of its tenants – My Space and Parasol – which jointly account for 17.7% of the company’s rent roll.
It has engaged with My Space in appointing four new members to its board as part of its ‘turn-around plan’. Rent collection is expected to increase over the year, but if it fails to reach an acceptable long-term position, Triple Point will find new tenants for My Space’s properties.
Likewise, Triple Point plans to complete the transfer of properties currently leased by Parasol over to Westmoreland by the end of September, with the new tenant paying rent in accordance with the existing agreement.
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