Investment Trust Insider on PRS REIT

Investment Trust Insider on PRS REIT – James Carthew: Bank warning weighs on PRS rental trust

“….At 99.5p at yesterday’s close the shares stood at a 5% premium over NAV asset value but in recent weeks they have dipped below the £1 issue price for the first time.

I’m not certain what is driving this, but it may be that some investors have been spooked by the potential impact of Brexit on the capital value of the portfolio. The Bank of England’s dire warnings about the impact of no deal included the prospect of house prices falling by up to a third in a worst case scenario. That clearly could have profound implications for any geared investor in property.

However, it is worth bearing in mind that, right now, PRS hasn’t secured the other half of its debt or even fully committed all its equity, and that worst case scenario is unlikely to become reality, we hope.”

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