REG - Residential Secure - Q3 Net Asset value and corporate update

Residential Secure IncomeAnnouncement

Thu 07:01

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RNS Number : 2778T  Residential Secure Income PLC  31 July 2025

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                 +44 (0) 20 3837 6270

 Sandeep Patel

 Peel Hunt LLP

                            +44 (0) 20 7418 8900

 Luke Simpson

 Huw Jeremy

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

                            +44 (0) 20 3882 6644

 Charles Gorman

 Charlotte Francis

 

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
(http://www.resi-reit.com/) , and further information on Gresham House is
available at www.greshamhouse.com (http://www.greshamhouse.com/)

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