Profit and net asset value (NAV) fell slightly at Urban Splash UK Residential (USUKR) for the financial year ending March 2023.
Full-year profit fell to £1.8m from £2.2m the previous year and the fund’s NAV dropped to £89.3m from £90.3m.
USUKR had a cash balance of £15.6m at year end, which it said would be used for acquisitions of investment property. It added that it expected there to be “attractive purchasing opportunities in the next financial year”.
In the 12-month period, like-for-like rental growth was 4.1% and USUKR said its income had been supplemented by a like-for-like capital uplift of 2.4%.
The portfolio closed the year with 307 homes across Manchester, Sheffield, Birmingham, Cambridge, Bristol and Bradford.
Akeel Malik, fund manager at USUKR, said: “Although we have seen great economic uncertainty in the UK in recent months, the fact remains that people need homes to rent. There was a longer than anticipated timeline on new acquisitions as we waited for repricing in the market, and a number of purchases occurred post-year end.
“Despite the headwinds that have come from ‘Trussonomics’, interest rate rises, and other global factors, our Urban Splash Residential Fund has maintained its performance and continues to develop as an institutional-scale UK residential portfolio.
“Our resilient income stream comes from a team committed to delivering a market-leading resident experience, with a portfolio of differentiated homes that are well positioned for the ‘new normal’ with flexible, spacious interiors, access to outdoor spaces and strong connectivity – something occupiers are increasingly demanding across the country.”
He added: “Ongoing equity fundraising discussions assist in our ambition to build an institutional-scale portfolio of design-led rental homes across the UK, with an identified pipeline of over £1bn through Urban Splash Group companies and JVs, as well as third parties. We believe there is continuing institutional interest and belief in the UK residential rental sector, and the quality of our assets and our team. I am also very grateful for the continued support of our investors and advisers.”
