PRS REIT PLC on Tuesday said profit in its latest year decreased due to smaller investment gains, but it said its portfolio has performed well so far in the last few months.

The Manchester, England-based real estate investment trust said pretax profit fell 63% to £42.5 million in the year ended June 30, from £115.9 million the year before. This was mainly due to gains from fair value adjustment on investment property, which dropped 75% to £25.4 million from £99.7 million.

More positively, revenue in the form of rental income increased 18% to £49.7 million from £42.0 million. Net rental income, accounting for non-recoverable property costs, rose 17% to £40.2 million from £34.3 million.

PRS REIT said its portfolio grew by 6.1% during the year to comprise 5,080 completed homes with an estimated rental value of £55.0 million per annum, up from 4,786 at £47.8 million in financial 2022.

PRS REIT said dividends totalling 4.0p per share were declared during financial 2023, unchanged from the prior year. It is targeting the same total payout for the current fiscal year, which it expects to be fully covered on a run-rate basis.

The trust said its asset performance ‘remains strong’ so far this year, with the portfolio further expanding in the first quarter to 5,129 completed homes at an ERV of £57.6 million per year.

Chair Steve Smith said PRS REIT’s business model ‘remains firmly supported by market fundamentals. Population growth, changing household formations and low new housing volumes continue to drive demand.’

He added: ‘PRS REIT is a market leader and the board remains confident about prospects, with affordability...and asset performance both very strong.’

PRS REIT shares were up 1.5% at 67.27p in London on Tuesday morning.

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