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Residential Secure IncomeAnnouncement

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RNS Number : 0435Q  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 earnings(1) 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 million(6)

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 team(5)

 

 

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/
(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
(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                 +44 (0) 20 7382 0900

 Sandeep Patel

 Peel Hunt LLP

 Luke Simpson               +44 (0) 20 7418 8900

 Huw Jeremy

 KL Communications          gh@kl-communications.com (mailto:gh@kl-communications.com)

 Charles Gorman             +44 (0) 20 3882 6644673

 Charlotte Francis

 

 

 

 

 

 

 

 

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