Half-Year Results 2021
Residential Secure Income Fund plc (LSE: RESI), which invests in affordable shared ownership, retirement and local authority housing, is pleased to announce its interim results for the six months ending 31 March 2021.
Alex Pilato, Chief Executive of ReSI Capital Management, Head of the Housing Division of Gresham House and Fund Manager of ReSI commented:
“We have made good progress on the plans we set out in November 2020 to deploy our remaining capital, fully occupy our shared ownership homes and address retirement voids, and as a result, achieved our dividend cover of 80% for the full year in Q2 with cover of 82%.
Over the second half of the year, earnings growth will be driven by the £40m of recent acquisitions, occupying the remaining shared ownership homes and continuing to improve the performance of the retirement portfolio through taking control of its property management.
Going forward our focus will be on the Retirement and Shared Ownership portfolios where we have respectively scale and a unique opportunity through our for-profit Registered Provider with Homes England and GLA investment partner status.”
Financial highlights – full deployment and void reductions driving increasing dividend cover
Operating profit before property disposals and change in fair value up 17% to £5.6 million (1H20: £4.8 million)
1.1% like-for-like rental growth in line with RPI
99% of rent collected during the half year to March 2021, continuing to demonstrate defensive characteristics of the portfolio
IFRS Net Asset Value Total Return of 2.9 pence per share for the half-year, including 1.8 pence recurring income (1H20: total return of 0.8 pence)
IFRS Net Asset Value of £179.7 million, or 105.1 pence per share (FY20: 105.0p)
Adjusted earnings per share of 1.8 pence, up 29% (1H20: 1.4 pence per share)
Total dividends for the half-year of 2.5 pence per share, in line with target (1H20: 2.5 pence per share)
Gross rental income up 5%, to £10.7 million (1H20: £10.2 million)
Deployment and operational highlights
Completed the acquisition of 59 Shared Ownership units at Clapham Park. ReSI has now deployed £302 million since IPO, amassing a portfolio of 2,679 homes comprising: 166 shared ownership homes, 289 authority housing units and 2,224 Retirement Rental homes, across 656 unique locations
Fully deployed capital due to £19m of acquisitions and £21m of committed acquisitions in 1H 2021
Retirement voids reduced to below 8% from 10% in September 2020, closing in on pre-Covid average of c.7%
Shared Ownership homes increased to 549 homes (including 105 committed acquisitions) from 196 at 30 September 2020
Shared Ownership portfolio now 93% occupied, with a further 5% reserved
Dividend cover of 82% for Q2, ahead of 80% full year target
Transfer of the property management function from Girlings to a subsidiary of the Investment Manager, proceeding well and expected to deliver further cost efficiencies and operational improvements
Acute need continues for further expansion of UK’s affordable housing stock
Particular shortage of affordable homes for home ownership and suitable accommodation for independent later living – which ReSI is strongly placed to meet
Full dividend cover on track to be achieved in July 2021
Interim Report and Investor Webinar
ReSI will host an online webinar and Q&A session to discuss the results on 27 May 2021 at 11:00am (GMT).Registration is available at: https://greshamhouse.zoom.us/webinar/register/WN_x_yirC2BR6K6CqrILvLaoQ
The accompanying presentation will be made available shortly after the webinar on the Company's website at https://www.resi-reit.com/company-documents.
A copy of the Interim Report is also available on the Company's website at https://www.resi-reit.com/company-documents where further information on the Company can also be found. The Interim Report has also been submitted to the National Storage Mechanism and will shortly be available at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Robert Whiteman, Chairman of Residential Secure Income plc, commented:
“With ReSI's committed shared ownership acquisitions we’re delighted to have reached full deployment by the end of March. Combined with the quality of our existing portfolio and the underlying fundamentals supporting our rental income, this will enable the Company to deliver full dividend cover from July 2021 on a forward-looking basis.”
FOR FURTHER INFORMATION, PLEASE CONTACT:
ReSI Capital Management Limited / Gresham House plc
+44 (0) 20 7382 0900
Jefferies International Limited
+44 (0) 20 7029 8000
+44 (0) 20 3995 6673