What is a Real Estate Investment Trust (REIT)?

A REIT is a company that meets all of the qualifying conditions
in the Corporation Tax Act 2010.

REITs are investment companies that:

  • Own commercial or residential property and rent it out
  • Are obliged to distribute 90% of the profits they make from their rental business to shareholders
  • Do not have to pay corporation tax on profits from the rental business

Shareholders in REITs pay income tax, not dividend tax, on distributions that are made in this way. The general idea is that shareholders are taxed as though they own the properties themselves. Of course, if REIT shares are held in a tax wrapper such as an ISA or SIPP, no tax is paid on the distributions, making REITs a tax-efficient way to invest in property.

Four compelling reasons to invest in Triple Point Social Housing REIT plc

ROBUST INCOME STREAM

The Group’s investors receive a long-term, inflation-linked income stream which derives its strength from its social impact. The Group leases its newly-developed properties to Approved Providers which typically receive housing benefit directly from Local Authorities. Local Authorities and Commissioners continue to fund this type of housing precisely because it gives residents better outcomes at the same time as saving the government money.

BETTER OUTCOMES FOR RESIDENTS

Evidence shows that taking people out of ageing institutions and putting them into new, adapted homes for life in the community gives them a better quality of life and reduces their care needs. Where possible Local Authorities are obliged to move people with health needs into community settings under the 2015 Transforming Care programme.

SAVING THE GOVERNMENT MONEY

Residents living in specialised Supported Housing cost the government about £200 less per week than being in a residential care home and nearly £2,000 less per week than remaining in in-patient care. Multiplied across the 2,832 residents in the portfolio, the Group is saving the government significant amounts of money, underpinning the security of the Group’s income stream.

BRINGING NEW STOCK TO MARKET

Investing private capital into a sector with limited access to grant funding has helped to bridge the funding gap and facilitate the development of new housing stock. Encouraging private investment into social housing is in fact one of the objectives of the Regulator of Social Housing. The Group currently owns 397 properties, 27% of which are new-build. These properties are then leased to Approved Providers to allow them to provide additional housing services for the benefit of both residents and the taxpayer.

Business Model