Living REIT, previously Triple Point Social Housing REIT (LON:SOHO), reported higher rental income and adjusted earnings for the first half of 2026, supported by inflation-linked leases, improved rent collection and active management of its supported housing portfolio.
The company, which has rebranded as Living REIT or LIVE, said most of its strategic changes—including its entry into senior living—occurred after the June 30 period end and were not reflected in the interim financial results.
Dividend cover stood at 1.2 times following the increase, while rent collection improved to 92.7%. EPRA net tangible assets rose 1.2% to 95.4p per share from 94.2p at the prior period end.
Balance Sheet and Financing
Property values were broadly unchanged during the period, as rental uplifts offset an outward movement in valuation yields. The portfolio’s valuation yield moved to 6.54%, while the company held £42 million of cash at June 30 ahead of its subsequent senior living acquisition.
Markham said 90% of debt was fixed at the reporting date, with an average maturity of 6.7 years and a weighted average cost of debt of 3.06%. Net loan-to-value was 37.8% at June 30.
Following the period end, Living REIT added a £30 million Barclays facility to help finance its acquisition and assumed long-dated debt from Scottish Widows. After the transaction, 92% of the group’s debt was fixed, with an average maturity of 8.9 years and an average all-in cost of 3.16%.
The acquisition lifted LTV to 45%, though management said it had begun repaying £7 million of the Barclays facility using proceeds from planned property sales. The group’s medium-term LTV target remains 40%.
Markham also said the acquired debt carried an additional fair value of £33.5 million. While the full amount would not be recognized in NTA, he said the company expects an element of the value to flow through to reported NTA after consultation with advisers.
Supported Housing Portfolio and Tenant Management
At June 30, the supported housing portfolio had a contracted rent roll of £43.3 million and 3,301 lettable homes. Resident occupancy rose to 88%, helping drive the improvement in rent collection. On a pro forma basis, excluding properties sold after the reporting period, rent collection would have been 96.5%.
Tom Still, managing director of Social Housing REIT, said 78% of homes were rated EPC C or above. He highlighted the manager’s property inspections, engagement with approved providers and care providers, and early intervention when tenant concerns emerge.
The company inspected 91% of the portfolio over the previous 12 months, met with 89% of its approved providers, and met its top 10 care providers, representing 50% of the portfolio.
Living REIT transferred properties from Pivotal to IHL at contracted rent during the period after identifying issues through its inspection program and provider relationships. Still said the properties remained occupied and income producing, allowing leases to be assigned on the same terms. Pivotal was later deregistered as an approved provider.
The company is also transferring properties away from Auckland Home Solutions, with leases expected to move to Inclusion on full repairing and insuring terms in the fourth quarter. Management said it does not expect the transfer to affect earnings.
Inclusion Housing, Living REIT’s largest tenant, was upgraded to a V2/G2 compliant rating by the Regulator of Social Housing. Still said the judgment offered a positive signal for the lease-based supported housing model and could provide a blueprint for other approved providers.
Senior Living Acquisition Expands Platform
In July, Living REIT completed the acquisition of what management described as the U.K.’s largest senior living rental portfolio. The portfolio comprises 2,163 homes valued at £185 million.
The transaction was funded through £63 million of new equity issued at EPRA NTA, £45 million of cash—partly supported by the new Barclays facility—and the assumption of £92 million of debt fixed for 17 years at 3.46%.
Management expects the acquisition to provide high single-digit earnings accretion in the 2027 financial year. On a pro forma basis, the deal increased gross asset value 27% to £825 million, expanded the group to 5,464 lettable homes, and lifted net rental income to £52 million.
The company has broadened its investment policy beyond supported housing to include the wider living sector. Management cited demographic growth among people over 55, an estimated need for 250,000 senior living homes over the next five years, and the sector’s inflation-aligned income characteristics as reasons for the move.
Living REIT said it intends to deploy restricted cash acquired with the senior living portfolio into additional senior living assets. It also plans to review properties outside five identified geographic strongholds and may recycle capital into assets within those regions.
Management said it was also assessing potential opportunities in care homes, where it sees a market segment between prime assets and more asset-management-intensive facilities. The company has not yet acquired care homes but said it is prepared to pursue opportunities on an asset-by-asset or portfolio basis.
About Triple Point Social Housing REIT (LON:SOHO)
Social Housing REIT seeks to address the ongoing housing crisis by investing in the UK social housing sector, providing sustainable high-quality homes which have been adapted for vulnerable adults with long-term care and support needs including mental health issues, learning disabilities, or physical and sensory impairment.
We believe our residents deserve a home that offers greater independence than institutional accommodation, at the same time as meeting their specialist care needs. Our ambition is to be the leading UK Supported Housing investor, helping guarantee secure futures for people in need across the country, while ensuring that our shareholders have an ethical, solid, long-term income source.
