ReSI Capital Management Limited

21-26 Garlick Hill,

London EC4V 2AU

0207 3820900

resi@resicm.com

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+44 (0) 20 3727 1000
resi@fticonsulting.com

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Net Asset Value & Corporate Update

April 29, 2019

Residential Secure Income plc ("ReSI") (LSE: RESI), which invests in affordable shared ownership, retirement and local authority housing, is pleased to announce its unaudited net asset value ("Net Asset Value" or "NAV") as at 31 March 2019 and to provide an update on its corporate activity since 31 December 2018.

 

 

Financial highlights:

 

  • IFRS NAV per share increased to 107.9 pence (1) (31 December 2018: 105.9 pence), resulting in a NAV total return for the quarter of 3.2 p and taking the NAV total return to 4.7p for the year to date and 14.1p since the admission of ordinary shares on 12 July 2017

  • Total property portfolio value of £260.7 million, reflecting an increase in the like-for-like value of £4.2 million and net additions of £6.6 million, primarily in the retirement homes portfolio

  • The increase in like-for-like value of £4.2 million is driven by a valuation uplift across the portfolio resulting from contractual inflation-linked growth of rent, together with the effect of the previously announced lease extensions within the retirement homes portfolio

  • A further £60 million capital committed for the acquisition of 132 apartments at Clapham Park, for delivery as Shared Ownership utilising government grant funding. The apartments were purchased from Metropolitan Thames Valley Housing, one of the UK's largest Housing Associations, who will retain management of the portfolio

  • Interim dividend announced of 1.25 pence per Ordinary Share announced for the period from 1 January 2019 to 31 March 2019, in line with the target of 5.0 pence per Ordinary Share for the current financial year (2)

 

Update on corporate activity since 31 December 2018:

 

  • £300 million Housing Investment Partnership agreement entered into with Morgan Sindall Investments to initially target 1,500 new Shared Ownership homes

  • Extended the lease term on 279 long leasehold retirement properties to 150 years, increasing the average unexpired lease term of the 2,100 leasehold units in the portfolio to 131 years and enhancing portfolio valuation

  • £14.5 million debt facility secured against 289 units in ReSI’s local authority housing portfolio

  • £4.0 million debt facility secured against 102 units in ReSI’s retirement housing portfolio

 

 

(1) Reflecting an independent valuation of the property portfolio prepared on an IFRS basis.

(2) These are targets only and not a profit forecast. There can be no assurance that the targets will be met.

 

 

The movement in NAV since publication of annual results is as follows:

 

Ben Fry, of ReSI Capital Management Ltd, ReSI's fund manager, said:

“The increase in NAV over the period primarily reflects the valuation uplift mainly resulting from contractual inflation-linked rental growth in the retirement and local authority housing portfolios, together with the previously announced lease extensions we secured within the retirement homes portfolio.

 

“Having successfully amassed a significant portfolio of income producing retirement homes and local authority housing working only with investment grade counterparties, we are now predominantly focused on building further scale with a portfolio of Shared Ownership properties, contributing positively to the delivery of affordable housing in the UK whilst growing income and delivering enhanced returns for shareholders. We have an exciting pipeline of Shared Ownership opportunities to grow the portfolio with a range of institutional partners, including Metropolitan Thames Valley Housing, Morgan Sindall and Crest Nicholson, in an increasingly vital residential use tenure.”

 

The NAV has been calculated in accordance with International Financial Reporting Standards and incorporates the independent valuation on a "sum of the parts" basis, in accordance with, and required by, international accounting standards. The NAV does not include a provision for the interim dividend for the period from 1 January 2019 to 31 March 2019.

 

 

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

ReSI Capital Management Limited

Ben Fry

Jonathan Slater
Alex Pilato

Mark Rogers

+44 (0) 20 7382 0900

 

 

Jefferies International Limited

Stuart Klein

Gary Gould

+44 (0) 20 7029 8000

 

 

FTI Consulting                                                                                                  

Richard Sunderland                                                                                         

Claire Turvey

Richard Gotla

+44 (0) 20 3737 1000

Email: resi@fticonsulting.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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