TIDMRESI
RNS Number : 3992U
Residential Secure Income PLC
29 July 2020
29 July 2020
Residential Secure Income plc
Net Asset Value & Corporate Update
Residential Secure Income plc ("ReSI") (LSE: RESI), which
invests in affordable Shared Ownership, retirement and Local
Authority housing, i s pleased to announce its unaudited third
quarter net asset value ("Net Asset Value" or "NAV") as at 30 June
2020 and to provide an update on its corporate activity.
Financial highlights:
-- IFRS NAV per share o f 106.6 pence (1) (31 March 2020: 106.9
pence) ; a total return for the third quarter of 1.0 pence.
-- Total property portfolio value of GBP277.3 million, with a
like-for-like increase in value of GBP0.4 million (0.2%) reflecting
RPI-linked inflationary increases in rental cashflows.
-- As a result of the secure asset classes in which ReSI is
invested and the robust performance of the portfolio since the
onset of the COVID-19 pandemic, the 'material valuation
uncertainty' clause has been removed from this quarter's
independent valuation, in line with recent RICS guidance.
-- The net annual rent roll on completed shared ownership homes
is GBP651,000 (0. 38 pence per share) . A further GBP483,000 (0.28
pence per share) of net annual rent is expected on reserved shared
ownership homes that are moving towards completion.
-- Overall, the net annual rent roll on completed and reserved
shared ownership homes is up GBP373,000 (48.9%), or 0.22 pence per
share since last quarter.
-- Total portfolio rent collection continues to be secure, with
99% of June rent collected, unchanged throughout the COVID-19
crisis and in line with normal performance, demonstrating the
secure nature of ReSI's cashflows.
Dividend:
-- Interim dividend announced at a maintained level of 1.25
pence per Ordinary Share for the period from 1 April 2020 to 30
June 2020. Target dividend of 5.0 pence per Ordinary Share
reaffirmed for the current financial year (2) .
Update on corporate activity since 31 March 2020:
-- On 3 July 2020 ReSI entered into a GBP300 million, ultra long
- term secured debt facility from the Universities Superannuation
Scheme, drawing an initial GBP34 million with a coupon of 0.46 1 %.
The new 45-year facility is drawable against acquisitions over the
next three years and represents the first standalone investment
grade financing secured for shared ownership, a sector where growth
and supply have been constrained by a lack of long-term
institutional debt. The new debt has already enabled ReSI to
progress the following two transactions:
o Completion on 3 July 2020 of the previously announced GBP34
million purchase of 73 shared ownership apartments at Clapham
Park.
o Completion on 7 July 2020 of 24 occupied shared ownership
homes and exchange on an additional 15, which will be acquired by
ReSI within six months once construction is completed and the homes
are occupied. The aggregate
cost of this portfolio is GBP3.5 million, including deferred payments.
-- As of 2 8 July 2020, ReSI's shared ownership portfolio
comprised 205 homes, of which 88 homes were occupied, 44 were
reserved and in sales progression and 58 remained available for
shared owners. The remaining 15 homes are due to be acquired once
construction is completed and the homes are occupied.
-- ReSI continues to focus on the deployment of a further
c.GBP30 million into high-quality shared ownership schemes,
utilising existing cash and further drawdowns from its new debt
facility.
(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 31 March 2020 is as follows:
GBPm* Pence per share
Net Asset Value as at 31 March
2020 182.8 106.9
------ ----------------
Net Income for period 1.3 0.7
------ ----------------
Valuation change 0.5 0.3
------ ----------------
Dividend paid (2.1) (1.3)
------ ----------------
Net Asset Value as at 30 June
2020 182.4 106.6
------ ----------------
*Please note that values do not sum to total due to rounding
differences
FOR FURTHER INFORMATION, PLEASE CONTACT:
ReSI Capital Management Limited / TradeRisks
Limited
Ben Fry
Alex Pilato +44 (0) 20 7382 0900
Jefferies International Limited
Stuart Klein
Tom Yeadon +44 (0) 20 7029 8000
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 deployed GBP305 million,
assembling a portfolio of 2,718 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.
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.
ReSI is managed by ReSI Capital Management Limited, a
wholly-owned subsidiary of TradeRisks Limited which has a 19 year
track record of executing transactions within the UK social housing
sector and, to date, has arranged funding of over GBP11 billion in
the social housing, care and other specialist residential property
sectors.
TradeRisks Limited and ReSI Capital Management Limited were
acquired on 4 March 2020 by Gresham House plc, the specialist
alternative asset management business which is listed on the London
Stock Exchange and now has c.GBP3.3 billion of assets under
management. Gresham House plc provides funds, direct investments
and tailored investment solutions, including co-investment across a
range of highly differentiated alternative investment strategies.
The Group's expertise includes timber, renewable energy, housing
and infrastructure, strategic public and private equity (private
assets). It aims to deliver sustainable financial returns and is
committed to building long-term partnerships with clients
(institutions, family offices, high-net-worth individuals,
charities and endowments and private individuals) to help them
achieve their financial goals. Shareholder value creation will be
driven by long-term growth in earnings as a result of increasing
AUM and returns from invested capital.
Further information on ReSI is available at
www.resi-reit.com
Further information on Gresham House is available at www.greshamhouse.com
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END
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