REG - Residential Secure - 1Q26 Net Asset Value and corporate update

Residential Secure IncomeAnnouncement

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RNS Number : 7401T  Residential Secure Income PLC  20 February 2026

20 February 2026

Residential Secure Income plc

 

Net Asset Value and corporate update

Residential Secure Income plc ("ReSI" or the "Company") (LSE: RESI), which is
pursuing an orderly realisation of its independent retirement and shared
ownership portfolios, announces its unaudited Net Asset Value ("NAV") as at 31
December 2025 and provides an update on operational performance and the
ongoing sales process.

Robert Whiteman CBE, Chairman of ReSI plc, commented:

"The Board and Investment Manager remain mindful of the Company's persistent
share price discount and limited liquidity, which underpinned shareholder
support for the managed realisation strategy. We remain focused on executing
the shareholder-mandated realisation strategy in an orderly manner while
seeking to maximise value.

"As announced in our full year results in January, the Board and Investment
Manager have undertaken a comprehensive, adviser-led sales process across both
portfolios. Following competitive bidding, both portfolios are now in
exclusivity with preferred purchasers who are undertaking further due
diligence.

"Operationally, the portfolios continue to perform well, with high levels of
rent collection, occupancy and inflation-linked rental growth. The defensive
characteristics of the assets remain evident."

Strong operational performance reflecting defensive nature of assets

·      Rent collection consistent at over 99% for the quarter

·      Rental growth of 4.6% on 472 properties (20.5% of portfolio)
giving 2.5% like-for-like growth

·      Shared ownership portfolio fully occupied, with retirement
occupancy at 96%

 

Valuations remained broadly stable in the quarter, with a modest outward yield
movement of 7 basis points largely offset by inflation-linked rental growth,
resulting in a 0.2% like-for-like decline in values

·      Total EPRA return for the quarter of 0.5% (0.3p) to give EPRA NTA
of 62.6p (£134.1mn) as at 31 December 2025

·      Driven by a 0.3p, or 0.2% decrease in like-for-like investment
property values, as follows:

o 1.4p increase from inflation-linked rent reviews in the quarter

o 1.7p decrease resulting from a further 7 basis points outward yield shift

·      Annualised net rental yields now 6.73% in retirement and 4.40% in
shared ownership

 

Interim dividend of 1.03 pence per share declared today

·      The Board will continue to balance dividend payments against
capital preservation and the orderly execution of the realisation strategy
with distribution 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

·      126% dividend coverage from Adjusted EPRA earnings of 1.26p

 

Sales Process

·      Following a comprehensive, adviser-led, sales process both the
shared ownership and retirement portfolios are in exclusivity with the
respective purchasers undertaking further diligence

o  Prospective purchasers are expecting to acquire the portfolio with the
existing debt facilities being ported; accordingly, any associated break gain
would remain unrealised and should not be interpreted as distributable value
under the expected transaction structures.

o  The Board continues to evaluate pricing and terms carefully to ensure any
transaction reflects best outcome for shareholders

 

NAV movement

The movement in NAV between 30 September 2025 and 31 December 2025 (the
"Period") is as follows:

                                      EPRA NTA*               IFRS NAV                Realisable NAV
                                      £'mn   Pence per Share  £'mn   Pence Per Share  £'mn      Pence per Share
 At 30 September 2025                 117.2  63.3             134.2  72.5             126.2     68.1
 Net income for the Period            2.3    1.3              2.3    1.3              2.3       1.3
 Dividend paid                        (1.9)  (1.0)            (1.9)  (1.0)            (1.9)     (1.0)
 One off profit on disposal           0.3    0.2              0.3    0.2              0.3       0.2
 Property valuation change            (0.9)  (0.5)            (0.9)  (0.5)            (0.9)     (0.5)
 Debt valuation / indexation          (1.1)  (0.6)            -      -                (1.1)     (0.6)
 At 31 December 2025 Exc. Break Gain  116.0  62.6             134.1  72.4             124.9     67.4
 Break Gain**                         -      -                -      -                (1.2)     (0.6)
 At 31 December 2025 inc. Break gain  116.0  62.6             134.1  72.4             123.7     66.8
 Total return                         0.5%   0.5%             1.3%   1.3%             (0.5%)    (0.5%)

*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 represents EPRA NTA adjusted for estimated realisation costs
and debt break assumptions at the balance sheet date.

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 3995 6673

 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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