Residential Secure Income PLC (RESI)

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Sell: 56.00p|Buy: 57.40p|Change: 0.20 (-0.35%)

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Residential Secure Income reports rental growth as it advances wind-up

(Alliance News) - Residential Secure Income PLC on Friday said it has achieved the full divestment of its local authority portfolio as it presses ahead with realisations for its remaining assets.

The investor in retirement living and shared ownership said it was committed to "driving earnings growth" as it reported 99% rent collection throughout the three months to December 31. It also reported rental growth of 3.3% on 472 properties, reflecting 25% of its portfolio.

Total EPRA return for its first-quarter fell 5.5%, said the firm, giving EPRA net tangible assets per share of 69.6 pence at December 31, down 6.7% from 74.6p at September 30.

It added that its valuation decline over the period was driven by the impact of rising government bond yields.

The investment trust also reported progress with the continued realisation of the assets in its portfolio, noting that 99.7% of shareholders voted in favour of a managed wind-down and portfolio realisation strategy at its general meeting in December.

It said the full divestment of its local authority portfolio was realised in January,

with the remaining asset sold for net consideration of around GBP15.0 million, marginally above the carrying values in March last year and September 2023.

With regard to its remaining assets, Residential Secure Income noted that it has completed the tender process to select key sales agents and advisers to assist with the sale of the assets, adding that the formal launch timing of the sale of the assets is being evaluated to ensure maximisation of shareholder returns.

The firm also declared an interim dividend of 1.03p, flat with the previous year's figure.

Its shares were 2.1% at 59.00p on Friday afternoon in London.

Chair Rob Whiteman said: "Both the investment manager and the board remain focussed on driving earnings growth, as evidenced this quarter through high levels of rent collection, sustained record occupancy and rent growth, while balancing maximising returns for shareholders with timing of disposals, ensuring the interests of our residents are protected throughout."

By Christopher Ward, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

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