Living REIT, formerly Atrato Secured Lending REIT, posted steady first‑half 2026 results. Net rental income rose 2.3% year‑on‑year to £20.2 million, driven by inflation‑linked leases and active asset management. Adjusted EPRA earnings per share increased 2.2% to 3.4 pence.
The board raised the dividend by 3% for the second year in a row, keeping dividend cover flat at a market‑leading 1.2 times. EPRA net tangible assets per share were broadly unchanged at 95.4 pence, versus 94.2 pence a year earlier; on a pro‑forma basis that includes the Q2 dividend, the figure would be 93.92 pence.
Cost efficiency slipped, with the EPRA cost ratio climbing to 17.1% from 16.5% and the gross profit margin standing at 33.14%. The REIT maintained a current ratio of 1.35 and a net loan‑to‑value of 37.8% at period end, rising to 45% after the senior‑living acquisition, against a medium‑term target of 40%.
Cash stood at £42 million. Debt remained predominantly fixed‑rate, with 90% fixed, an average maturity of 6.7 years and a weighted‑average cost of 3.06%. Post‑acquisition, fixed‑rate debt would rise to 92% with an average maturity of 8.9 years and an all‑in cost of 3.16%.
The core social‑sector housing portfolio recorded an 88% resident occupancy rate and a 92.7% rent‑collection rate, improving to a pro‑forma 96.5% after disposals. The contracted rent roll was £43.3 million, and the lettable home count grew to 5,464, including the senior‑living acquisition.
In July, Living REIT completed the purchase of the UK’s largest senior‑living rental portfolio, adding 2,163 homes valued at £185 million. The deal is expected to generate high single‑digit earnings accretion in FY2027. Pro‑forma, gross asset value rose 27% to £825 million and net rental income to £52 million.
Funding for the acquisition comprised £63 million of new equity issued at EPRA NTA, £45 million in cash—including a £30 million Barclays facility, of which £5 million was drawn at period end—and the porting of £92 million of debt fixed for 17 years at 3.46% via Scottish Widows.
Following the announcement, Living REIT shares fell 2.14% to $73.59, trading below the 52‑week high of $80.80 and above the low of $64.80. CEO Michael Carey highlighted a broader mandate and growth strategy, while CFO Nat Markham emphasized the strength of rental income growth and market‑leading dividend cover.
