Market Opportunity

Market Opportunity

Social Housing REIT Plc

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:

1
Own commercial or residential property and rent it out
2
Are obliged to distribute 90% of the profits they make from their rental business to shareholders
3
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 Social Housing REIT plc:

1
ROBUST INCOME STREAM
The Company’s investors receive a sustainable growing income stream. The Company leases its 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.
2
BETTER OUTCOMES FOR RESIDENTS
Evidence shows that taking people out of institutions settings and putting them into their own, adapted home 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.
3
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 residents in the portfolio, SOHO is saving the government an estimated £93 million per annum, underpinning the positive social impact of SOHO’s portfolio.
4
ADDITIONALITY – BRINGING NEW STOCK TO MARKET
Investing much needed private capital into the UK social housing sector has enabled the development of new social housing stock. Encouraging private investment into social housing is one of the key objectives of the Regulator of Social Housing. SOHO currently owns almost 500 properties leased to Approved Providers, benefitting both residents and the taxpayer.

Business Model

Business Model