Fizzy Living posts £9.5m loss

Fizzy Living has posted a £9.5m loss in 2023, according to the build-to-rent developer and operator’s latest annual accounts.

The accounts and consolidated financial statement of the company, which was set up by housing association Metropolitan Thames Valley Housing (MTVH) and subsequently sold to US real estate giant Greystar in 2021, were published on the Companies House website on Monday (August 12^th).

These show that Fizzy, which owns a portfolio of ten blocks containing 974 flats, enjoyed a 96.8% average occupancy rate across its portfolio.

The company’s projected rental income in 2023 was £12.3m. This is down on the projected rental income of £21m in Fizzy’s last Companies House accounts, which covered the final nine months of 2022.

The main difference in rental income was accounted for by a drop in projected income from one year-plus leases from £5m to £68,000.

The accounts also show that Fizzy recorded a loss of £9.5m in 2023. During the shorter, nine-month accounting period in the previous year, Fizzy posed a £24.5m profit.

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The interest rates paid by the company, which the report identifies as a key macro-economic uncertainty that it faces, was £12.1m in 2023. During the final nine months of 2022, Fizzy paid £7.2m of interest.

The value of Fizzy’s assets dropped from £164m when the last set of accounts was published to £154.6m, mainly due to ‘unrealised movements’ in the valuation of investment properties and derivative financial instruments.

MTVH founded Fizzy as a commercial subsidiary in 2012 as one of the UK’s first build-to-rent operators.