PRS specialist Sigma Capital has hailed 2017 as a “pivotal year” in its results for the 12 months to December, following the launch of its £250m PRS REIT last May.
While revenue was down slightly on 2016, going from £5.38m to £4.4m, Sigma posted an increase in pre-tax profit to £4.06m, up from £3.67m.
Sigma is responsible for the delivery of the PRS REIT’s goal to create a £1bn portfolio of 10,000 rental homes. According to the full year results, it already has 1,400 homes under construction, and sites for a further 4,000 identified.
Activity is focused towards the North of the UK, with 26 sites in the North West, Midlands and South Yorkshire.
Since the end of the year, Sigma has also completed a second £250m placing for the PRS REIT, and secured £200m of debt facilities.
Graham Barnet, chief executive of Sigma, said: “It has been a remarkable year for Sigma. The successful launch of the PRS REIT, which is the UK’s first REIT dedicated entirely to investment in new rental homes, has created a huge opportunity for the Group to capture, and cements our position as a leader in the Private Rented Sector.
“2017’s results do not reflect the profound change to Sigma’s growth prospects and earnings profile. However, our financial performance from the new financial year onwards will reflect the new model.
“We are wholly focused on delivering the PRS REIT’s initial goal of creating an initial 10,000 high-quality new rental homes for middle-income families, and are confident that, with our unrivalled PRS platform, supported by our housebuilding partners as well as by central and local government, Sigma is well-placed to achieve its objectives.”