Social Housing Reit (SOHO) H2 2024 earnings summary

Executive summary

• Atrato Partners appointed as AIFM from January 1, 2025, reducing investment management fees by £1.9m annually and boosting earnings.

• Net rental income increased 2% to £35.9m, with 93% rent collection for 2024.

• Adjusted EPRA earnings rose 16% to £21.2m; adjusted EPS reached 5.4p.

• Portfolio value declined 8% to £624.7m, and EPRA NTA per share fell 13% to £0.99.

• Focused on restoring investor confidence through proactive asset management and transparency.

Financial highlights

• 93% of contracted rent collected for 2024, with gross rental income at £39.1m, down 2% due to Parasol and My Space arrears.

• Adjusted dividend cover improved to 0.99x; EPRA dividend cover at 0.93x.

• Portfolio independently valued at £626m, down £53m year-over-year.

• Net loan-to-value at 38%, in line with long-term targets.

• 100% of income is inflation-linked, with average rental growth of 4% in 2024.

Outlook and guidance

• Expecting improved rent collection in 2025 as Parasol and My Space issues are resolved.

• EPS growth anticipated due to lower management fees and inflation-linked leases.

• Targeting material cost reduction and a potential return to progressive dividend policy if EPS growth is delivered.

• Well positioned for EPS growth, with long-term solutions for AP counterparty risk underway.