Portfolio update: Encircle Housing

10 April 2019

Triple Point Social Housing REIT plc

(the "Company" or, together with its subsidiaries, the "Group")

Portfolio update - Encircle Housing

The Board of Triple Point Social Housing REIT plc (ticker: SOHO) notes the Regulatory Notice published today by the Regulator of Social Housing (the "Regulator") in relation to Encircle Housing ("Encircle").

Encircle, a registered provider focused on the supported housing sector, has 112 tenanted social housing units under management (as at 31 December 2018) and has recently been subject to a review by the Regulator, resulting in Encircle being deemed non-compliant with the governance and viability elements of the Governance and Financial Viability Standard. As Encircle had fewer than 1,000 social housing units under management according to its last statistical return, no formal rating was given by the Regulator.

The Company has two assets leased to Encircle, the aggregate value of which, as at 31 December 2018, was £2.98 million, representing 0.82% of the Group's net asset value. One asset has 5 out of 6 units occupied and occupancy for the other is still ramping up following the recent completion of works. Both assets are of a high quality and are covered by voids agreements, and the rent payable under the leases with the Company continues to be paid.

The Company's delegated investment manager, Triple Point Investment Management LLP (the "Manager"), has an established relationship with Encircle and has been in regular dialogue with it, particularly with regard to the regulatory review. The Company notes Encircle has ongoing engagement with the Regulator and is currently taking steps to address the Regulator's concerns. 

FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:

The Company's LEI is 213800BERVBS2HFTBC58.

Further information on the Company can be found on its website at www.triplepointreit.com.

NOTES:

The Company invests in primarily newly developed social housing assets in the UK, with a particular focus on supported housing. The assets within the portfolio are subject to inflation-adjusted, long-term (typically from 20 years to 30 years), Fully Repairing and Insuring ("FRI") leases with Approved Providers (being Housing Associations, Local Authorities or other regulated organisations in receipt of direct payment from local government). The portfolio comprises investments into properties which are already subject to an FRI lease with an Approved Provider, as well as forward funding of pre-let developments but does not include any direct development or speculative development.

There is increasing political and financial pressure on Housing Associations to increase their housing delivery and this is creating opportunities for private sector investors to participate in the market. The Group's ability to provide forward financing for new developments not only enables the Company to secure fit for purpose, modern assets for its portfolio but also addresses the chronic undersupply of suitable supported housing properties in the UK at sustainable rents as well as delivering returns to investors.

Triple Point Investment Management LLP (part of the Triple Point Group) is responsible for management of the Group's portfolio (with such functions having been delegated to it by Langham Hall Fund Management LLP, the Company's alternative investment fund manager).

The Company was admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange on 8 August 2017 and was admitted to the premium segment of the Official List of the Financial Conduct Authority and migrated to trading on the premium segment of the Main Market on 27 March 2018. The Company operates as a UK Real Estate Investment Trust ("REIT") and is a constituent of the FTSE EPRA/NAREIT index.