Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com -- Shares of PRS REIT (LSE:PRSR) climbed 2.4% today as the company confirmed receiving bids at a premium to its current share price but at a discount to its last announced net asset value (NAV).
The news of the bids, coupled with an increase in the second-quarter dividend, has sparked investor interest, leading to the uptick in the stock.
PRS REIT, a real estate investment trust, announced that it has received several bids following the opening of a data room for interested parties. The bids came in higher than the current share price of 109.2p, yet fell short of the last reported NAV of 133.2p.
The board has decided to proceed with a subset of these bids, moving them forward to the due diligence phase, which is expected to be completed by the first quarter of the 2025 calendar year.
In addition to the news about the bids, PRS REIT also reported an increase in its second-quarter dividend to 1.1p from the previous 1p, leading to a half-year dividend of 2.1p.
The company stated that the increased dividend is fully covered by its earnings, specifically pointing to its EPRA earnings. This increase reflects the company’s robust rental growth, which has been a contributing factor to its financial performance.
Analysts from Barclays (LON:BARC) have projected a first-half fiscal year 2025 EPRA earnings per share (EPS) of 2p for PRS REIT. The company estimates that like-for-like rental growth stands at 6.2%, continuing the double-digit trend observed in the first quarter.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.