Annual Financial Report

Residential Secure Income PLC

23 January 2026

 

23 January 2026

Residential Secure Income plc

("ReSI" or the "Company")

Full Year Results to 30 September 2025

Residential Secure Income plc (ReSI plc) (LSE: RESI), which invests in independent retirement living and shared ownership to deliver secure, inflation-linked returns, is pleased to announce its financial results for the year ended 30 September 2025.

Commenting on ReSI's results, Robert Whiteman CBE, Chairman of ReSI plc, said:

"ReSI continues to operate against a backdrop of sustained market headwinds that have weighed on listed investment trusts since 2022, and despite the strong underlying performance of our long-term, inflation-linked portfolio, ReSI has continued to trade at a significant discount to NAV. Having recognised that ReSI could not achieve the scale necessary to improve liquidity or support further growth, in October 2024 the Company announced a proposed managed wind-down, with an orderly realisation of assets and return of capital. The managed wind-down was approved by shareholders in December 2024.

During the period we have undertaken a comprehensive sales process across both the retirement and shared ownership portfolios, and while neither transaction has yet completed, both portfolios are under exclusivity and purchasers are conducting further due diligence following a competitive bidding process. Pricing indications for both portfolios align more closely with prevailing market sentiment than with historical valuations, reflecting the cautious investment climate rather than the operational performance of the assets. The Board remains focused on securing the best available outcomes for shareholders while continuing to protect residents and uphold our responsibilities as a long-term housing provider"

Mike Adams and Sandeep Patel, Fund Managers of ReSI plc added:

"ReSI delivered a resilient operational performance during the year, with like-for-like rental growth of 3.4%, record retirement occupancy of 97%, rent collection above 99%, and adjusted earnings per share increasing 11% to 5.7 pence per share, resulting in dividend coverage of 137%. However, valuations reflected broader market conditions, with a 50 basis point outward shift in the weighted average portfolio yield to 5.8% driving a 6.2% like-for-like reduction in property values to £287.4 million and an EPRA NTA of 63.3 pence per share.

In parallel, ReSI has progressed a comprehensive asset realisation process, including outreach to over 70 investors, 50 executed NDAs and multiple competitive bidding rounds. Both portfolios are under offer and in exclusivity, with both transactions continuing further due diligence, lender engagement and documentation."

Key financial and operational metrics

Income	2025	2024	Change in Year
Like-for-like rental reviews	3.4%	5.8%	-2.4%
Rent collection	99%	99%	-
Gross rental income	£29.8mn	£29.9mn	-0.2%
Net rental income	£18.7mn	£18.9mn	-1.3%
Adjusted EPRA Earnings1,2	£10.5mn	£9.5mn	10.2%
Adjusted EPRA EPS1,2	5.7p	5.1p	11.0%
Dividend per share - paid	4.12p	4.12p	-
Dividend cover3	137%	124%	13%
Changes in fair value of investment properties	£(20.6)mn	£(12.8)mn	60.7%
Capital	30-Sept-25	30-Sept-24		Change in Period
IFRS net assets	£134.2mn	£151.0mn		-11.1%
IFRS NAV per share	72.5p	81.6p		-11.1%
IFRS Portfolio Valuation4	£287.4mn	£310.6m		-7.5%
EPRA NTA per share1	63.3p	74.6p		-15.1%
EPRA NTA Total Return1	(9.6)%	(3.7)%		-5.9%
Loan to Value	51.3%	51.7%		-0.4%

Sales process - comprehensive, adviser-led, realisation process across all portfolios, engaging over 70 investors and running a full multi-stage competitive exercise nearing completion, with both portfolios in exclusivity and purchasers undertaking further due diligence:

·      Local authority portfolio, fully divested in January 2025, generating £15 million of net proceeds, ahead of September 2024 valuation. Proceeds were used to repay floating rate debt

·      Shared ownership portfolio, under offer and in exclusivity with a credible counterparty following detailed financial, legal and technical due diligence

·      Retirement portfolio sale also under offer in exclusivity with a credible counterparty with further due diligence being undertaken

·      EPRA NTA adjusted for sales costs and debt breaks, representing a maximum realisable net asset value of £126.2 million / 68.2 pence per share, at prevailing gross asset value and break gain on debt at balance sheet date

o  Prospective purchasers are expecting to acquire the portfolio with the existing debt facilities being ported, rather than repaid on completion; accordingly, any associated break gain would remain unrealised 

Key financial highlights - 11.0% growth in ERPA adjusted earnings per share, primarily through inflation linkage of rental income, vigilance on fund opex and rebasing of management fee, delivering 137% dividend coverage 

·      3.4% like-for-like rent growth

·      EPRA adjusted earnings¹ of £10.5million (FY24: £9.5 million) underpinned by strong rent growth across retirement and shared ownership flowing through to adjusted earnings

·      EPRA Net Tangible Assets ("NTA") total return of minus 9.6% (FY24: minus 3.7%) to give 63.3p per share NTA

·      Increased long-term gilt yields continue to negatively impact valuations

o  6.2% like-for-like valuation decline following 50 bps outwards yield shift

·      LTV of 51.3% (FY24: 51.7%) supported by 21-year average debt maturity

·      Total dividends paid of 4.12p per share (FY24: 4.12p) with 137% dividend cover (FY24: 124%)

·      IFRS NAV benefited from the valuation of the USS debt adding £0.6million / 0.3p to IFRS total return (not included in EPRA NTA)

Portfolio and operational highlights 

·      Diverse portfolio of 2,935 homes worth £287.4 million⁶

o  £ 103.2 million reversionary surplus of vacant possession value compared to fair value (35.9% uplift)

·      Portfolio focused on direct leases with pensioners and part homeowners

·      Rent collection of over 99% for year (FY24 99%)

·      Record average retirement occupancy of 97% (FY24: 96%) culminating in 97% record in Sept-25, alongside fully occupied shared ownership portfolio

·      80% satisfaction levels with our in-house retirement property management team⁵

Annual results

A copy of the Annual Report is available on the Company's website at https://greshamhouse.com/real-assets/real-estate-investment/residential-secure-income-plc/ where further information on the Company can also be found. The Annual Report has also been submitted to the National Storage Mechanism and will shortly be available at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

Notes:

1. Alternative performance measures

2. Adjusted EPRA Earnings is EPRA earnings adjusted for income and costs which are not recurring and is equivalent to IFRS profit after tax before one-offs and valuation adjustments.

3. Dividend cover measured as Adjusted EPRA Earnings per share divided by dividend per share

4. Note 14 of the 2025 Annual Report and Accounts

5. Source: 2025 Retirement Customer Survey

6. Comprising independent retirement rentals portfolio and shared ownership portfolio, which are now held for sale

For further information, please contact:

Gresham House Real Estate Mike Adams Sandeep Patel	[phone]
Peel Hunt LLP Luke Simpson Huw Jeremy	[phone]
KL Communications Charles Gorman Charlotte Francis	[e-mail] [phone] 6644673

 

END