Q3 Net Asset value and corporate update
31 July 2025
Residential Secure Income plc
Q3 Net Asset value and corporate update
Residential Secure Income plc (LSE: RESI), which has invested in independent retirement living and shared ownership to deliver secure, inflation-linked returns and is now implementing a managed wind-down strategy, is pleased to announce its unaudited third quarter net asset value ("Net Asset Value" or "NAV") as at 30 June 2025 and update on corporate and sales activity for the period.
Rob Whiteman, RESI Chairman, commented:
"Against the backdrop of the orderly wind-down, the Investment Manager and Board have advanced several key operational workstreams in the quarter alongside progressing the strategic objectives to allow disposal of the two sub-portfolios. From an operational perspective, earnings growth has been delivered, as evidenced through continued high levels of occupancy within the Retirement Portfolio as a result of an ongoing reduction in void weeks alongside continued rental growth in both portfolios. Strategically, we are pleased to have received multiple initial offers for the Shared Ownership portfolio with the potential bidders continuing to review a data room and we conservatively note the positive initial market reaction to the retirement portfolio."
Strong operational performance continuing, reflecting defensive nature of investment portfolios
· Rent collection consistent at over 99% for the quarter
· Rental growth of 3.56% on 1,487 properties (50% of portfolio)
· Shared ownership portfolio fully occupied
· Record 97% retirement occupancy sustained
· Re-letting times continue to improve, with void weeks reducing, from a record low of 8.1 weeks in H1 2025 to 7.9 weeks in the quarter ending June 25 vs 11.5 weeks in FY 2024
Valuations broadly flat with strong inflation-linked rent growth, offsetting outward yield shift in the quarter
· Total EPRA return for the quarter of +2.1% (+1.4p) leading to 66.4p EPRA NTA (£122.9mn) as at 30 June 2025 vs. minus 8.7% in H1 2025
· Total return in the quarter ending June-25, driven by 0.2p, or 0.1% decrease in like-for-like investment property values, as follows:
o 2.1p increase from inflation-linked rent reviews in the quarter
o 2.3p decrease resulting from a further 25 basis points outward yield shift
· Decrease in property values offset by net profit excluding changes of property valuation of 1.6p
· Annualised net rental yields now 6.54% in retirement and 4.32% in shared ownership
Interim dividend of 1.03 pence per share declared today
· Dividends to be paid quarterly through realisation period quantum to be monitored in reference to:
o Overall profitability,
o Progress on realisations,
o Capital investment in investment portfolios to enhance value and,
o Maintaining Real Estate Investment Trust status.
· 148% dividend coverage from Adjusted EPRA earnings of 1.52p
Progress on execution of orderly realisation
· Following a period of targeted marketing for the Shared Ownership portfolio the Board have received a number of offers to acquire ReSI Housing Limited (the For-Profit Registered Provider owned by the Company) and its portfolio.
o Selected potential purchasers are currently undertaking more detailed diligence on the portfolio. The Board and Investment Manager will update following receipt of a final agreed offer.
· The Investment Manager and Sales Agent (JLL) have now launched a formal sales process to dispose of the Retirement Portfolio, having received several unsolicited approaches through 2025.
NAV movement
The movement in NAV between 31 March 2025 and 30 June 2025 (the "Period") is as follows:
|
|
IFRS NAV |
EPRA NTA* |
Realisable NAV** |
|||
|
|
£'mn |
Pence per Ordinary Share |
£'mn |
Pence per Ordinary Share |
£'mn |
Pence per Ordinary Share |
|
31 March 2025 |
140.8 |
76.0 |
122.3 |
66.0 |
130.0 |
70.2 |
|
Net income for the Period |
2.8 |
1.5 |
2.8 |
1.5 |
2.8 |
1.5 |
|
Dividend paid |
(1.9) |
(1.0) |
(1.9) |
(1.0) |
(1.9) |
(1.0) |
|
One off profit on disposal |
0.9 |
0.5 |
0.9 |
0.5 |
0.9 |
0.5 |
|
Property valuation change |
(0.4) |
(0.2) |
(0.4) |
(0.2) |
(0.4) |
(0.2) |
|
Debt valuation / indexation / Break gain |
- |
- |
(0.8) |
(0.4) |
0.1 |
0.1 |
|
30 June 2025 |
142.2 |
76.8 |
122.9 |
66.4 |
131.5 |
71.1 |
|
Total return |
2.4% |
2.4% |
2.1% |
2.1% |
2.7% |
2.7% |
|
|
|
|
|
|
|
|
*In accordance with the EPRA Best Practice Recommendations, EPRA NTA reflects the amortised cost of indebtedness, rather than its fair value, and thus the EPRA NTA movement reflects the indexation of USS debt.
** Realisable NAV is represented by EPRA NTA adjusted for projected realisation costs and debt breaks, representing a maximum realisable Net asset value at prevailing gross asset value and break gain on debt at balance sheet date
For further information, please contact:
|
Gresham House Real Estate
Mike Adams Sandeep Patel
|
+44 (0) 20 3837 6270
|
|
Peel Hunt LLP
Luke Simpson Huw Jeremy
|
+44 (0) 20 7418 8900 |
|
KL Communications
Charles Gorman Charlotte Francis |
+44 (0) 20 3882 6644
|
About ReSI plc
ReSI plc (LSE: RESI) is a real estate investment trust (REIT) focused on delivering secure, inflation-linked returns with a focus on two residential sub-sectors in UK residential - independent retirement rentals and shared ownership - underpinned by an ageing demographic and untapped and strong demand for affordable home ownership.
ReSI plc's purpose is to deliver affordable, high-quality, safe homes with great customer service and long-term stability of tenure for residents. We achieve this through meeting demand from housing developers, housing associations, local authorities, and private developers for long-term investment partners to accelerate the development of socially and economically beneficial affordable housing.
ReSI plc's subsidiary, ReSI Housing Limited, is registered as a for-profit Registered Provider of social housing and so provides a unique proposition to its housing developer partners, being a long-term private sector landlord within the social housing regulatory environment. As a Registered Provider, ReSI Housing can acquire affordable housing subject to s106 planning restrictions and housing funded by government grant.
In December 2024, shareholders voted for and accepted a new investment objective which seeks to realise all the existing assets in the Company's portfolio in an orderly manner. The Company will pursue its investment objective by effecting an orderly realisation of its assets while seeking to balance maximising returns for Shareholders against timing of disposals whilst ensuring the interests of residents are protected. Capital expenditure will be permitted where it is deemed necessary or desirable in connection to the realisation, primarily where such expenditure is necessary to protect or enhance an asset's realisable value, to comply with statutory or regulatory obligations, to protect other stakeholders, to comply with the terms of any funding arrangement or to facilitate orderly disposals.
About Gresham House and Gresham House Real Estate
Gresham House is an alternative asset manager committed to operating responsibly and sustainably, taking the long view in delivering sustainable investment solutions
Gresham House Real Estate offers long-term equity investments into UK housing, through listed and unlisted housing investment vehicles, each focused on addressing different areas of the affordable housing problem. Each fund aims to deliver stable and secure inflation-linked returns whilst providing social and environmental benefits to its residents, the local community, and the wider economy.
Further information on ReSI plc is available at www.resi-reit.com, and further information on Gresham House is available at www.greshamhouse.com
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