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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Residential Secure Income plc Net Asset Value & Corporate Update

August 1, 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 third quarter net asset value ("Net Asset Value" or "NAV") as at 30 June 2019 and to provide an update on its corporate activity since 31 March 2019.

 

Financial highlights:                       

 

  • IFRS NAV per share of 107.9 pence1 (31 March 2019: 107.7 pence), resulting in a total return for the quarter of 1.5p and taking the total return to 6.0p for the financial year to date and 15.3p since the admission of ordinary shares on 12 July 2017

  • Total property portfolio value of £262.3 million, reflecting an increase in the like-for-like value of £1.3 million, primarily in the retirement homes portfolio

  • Interim dividend announced of 1.25 pence per Ordinary Share for the period from 1 April 2019 to 30 June 2019, in line with the target of 5.0 pence per Ordinary Share for the current financial year2 

 

Update on corporate activity since 31 March 2019:

 

  • 0.5% uplift in the portfolio valuation, compared to the previous quarter, to £262.3 million. The largest contributor to the valuation increase was capital accretion due to the realisation of the contractual inflation-linked rent increases embedded in the portfolio.  In the absence of changes to property valuation yields or other factors, such rent increases automatically drive capital accretion when the portfolio is revalued each quarter. 

  • In May 2019, ReSI agreed a new 10 year management agreement with Places for People group, rated G1/V1 by the Regulator of Social Housing, and credit rated A- by Standard & Poor’s, covering the day-to-day management, rent collection and maintenance of its 2,223-unit retirement housing portfolio. The new contract incentivises Places for People to drive value in the portfolio by reducing voids and improving operational performance, and builds on Places for People's prior management of the portfolio through its specialist retirement division, Girlings.

  • The 132 apartments at Clapham Park intended for shared ownership that ReSI is committed to purchase once constructed are expected to complete during autumn 2019, which will increase ReSI’s property portfolio by £60 million.

 

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

2 This is a target only and not a profit forecast. There can be no assurance that this target will be met.

 

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

 

 

                                                                      £m                              Pence per share

Net Asset Value as at 31st March 2019             184.1                           107.7

Net Income for period                                       1.2                               0.7

Valuation change                                             1.3                               0.8

Dividend paid                                                   (2.1)                            (1.3)

Net Asset Value as at 30th June 2019               184.5                           107.9

 

 

               

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

 

ReSI Capital Management Limited / TradeRisks Limited     +44 (0) 20 7382 0900

Ben Fry

Alex Pilato

Mark Rogers

Jonathan Slater

Richard Stubbs

 

Jefferies International Limited                                             +44 (0) 20 7029 8000

Stuart Klein

Gary Gould

 

FTI Consulting                                                                      +44 (0) 20 3727 1000

Richard Sunderland                                                                 Email: resi@fticonsulting.com

Claire Turvey

Richard Gotla

 

 

NOTES:

Residential Secure Income plc (LSE: RESI) is a real estate investment trust (REIT) listed on the premium segment of the Main Market of the London Stock Exchange with the objective of delivering secure inflation linked returns by investing in affordable shared ownership, retirement and Local Authority housing throughout the UK.

ReSI targets a secure, long-dated, inflation-linked dividend of 5.0 pence per share p.a. (paid quarterly) and a total return in excess of 8.0% p.a. and has to date committed c. £300 million, assembling a portfolio of 2,678 properties.

ReSI aims to make a meaningful contribution to alleviating the UK housing shortage by 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 new affordable housing.

ReSI’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.

ReSI is managed by ReSI Capital Management Limited, a wholly-owned subsidiary of TradeRisks Limited which has an 18 year track record of executing transactions within the UK social housing sector and, to date, has arranged funding of over £10 billion in the social housing, care and other specialist residential property sectors.

Acquisitions by ReSI are limited to homes with sufficient cashflows, counterparty credit quality and property security to be capable of supporting long‑term investment grade equivalent debt.

ReSI does not manage or operate stock and uses experienced and credit-worthy third party managers.

Further information on ReSI is available at www.resi-reit.com

 

 

 

 

 

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