RESI Residential Secure Income Plc

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

7 February 2025

Residential Secure Income plc

Net Asset Value and corporate update

Residential Secure Income plc ("ReSI plc") (LSE: RESI), which is pursuing a full realisation of its independent retirement living and shared ownership investment portfolios, is pleased to announce its unaudited first quarter net asset value ("Net Asset Value" or "NAV") and provide an update on corporate activity between 30 September 2024 and 31 December 2024 (the "Period").

Ongoing strong operational performance, reflecting defensive nature of assets

·      Secure rent collection at over 99% for the quarter.

·      Rental growth of 3.3% on 472 properties (25% of portfolio).

·      Shared ownership portfolio fully occupied with retirement occupancy continuing at record 97% levels.

Valuation decline in the period, driven by impact of rising government bond yields

·      Total EPRA return for the quarter of (5.5)% (4.5p), to give EPRA NTA of 69.6p (£128.8mn) as at 31 December 2024.

·      Driven by a 6p, or 3.5%, decrease in like-for-like investment property values, as follows:

o 0.9p increase from inflation-linked rent reviews in the quarter;

o 6.9p decrease due to a further 25 basis points outward yield shift.

·      Annualised net rental yields now 6.4% in retirement and 4.2% in shared ownership.

Interim dividend of 1.03 pence per share declared today

·      141% dividend cover from Adjusted EPRA earnings of 1.46p.

·      During the realisation period, dividends will continue to be paid quarterly.

·      Board will continue to monitor dividend levels in reference to overall profitability, realisation progress, portfolio capital investment needs to enhance sale value, and maintaining REIT status.

Completion of local authority portfolio sale and progress on sales of remaining portfolios

·      Full divestment of the local authority portfolio was achieved in January 2025, as announced.

o  Remaining asset sold for a net consideration of c.£15.0mn, marginally in excess of both March 2024 and September 2023 carrying values.

o  Proceeds have been used to repay drawn floating rate debt which is due to mature in March 2025.

·      Completed tender process for potential sales agents and other key advisers.

o  As guided at year-end, formal launch timing being evaluated in line with the Board's aims to maximise total shareholder returns.

o  Inbound enquiries are being shortlisted and assessed by sales agent (Jones Lang LaSalle) and Investment Manager.

·      99.7% of shareholders voted in favour of managed wind-down and portfolio realisation strategy the December 2024 General Meeting.

·      In dialogue with current and prospective lenders for a new revolving credit facility.

NAV movement

The movement in NAV during the period is as follows:

*In accordance with the EPRA Best Practice Recommendations, EPRA NTA reflects the amortised cost of indebtedness, rather than its fair value, and thus the EPRA NTA movement reflects the indexation of USS debt.

Rob Whiteman, ReSI PLC Chairman, commented:

"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."

- Ends -

The information contained within this announcement constitutes inside information. The person responsible for arranging for the release of this announcement on behalf of the Company is Charles Gorman of KL Communications.

LEI: 213800D24WA531LAR763

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About ReSI plc

ReSI plc (LSE: RESI) is a real estate investment trust (REIT) focused on delivering secure, inflation-linked returns with a focus on two residential sub-sectors in UK residential - independent retirement rentals and shared ownership - underpinned by an ageing demographic and untapped and strong demand for affordable home ownership.

ReSI plc's purpose is to deliver affordable, high-quality, safe homes with great customer service and long-term stability of tenure for residents. We achieve this through 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 affordable housing.

ReSI plc'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.

In December 2024, shareholders voted for and accepted a new investment objective which seeks to realise all the existing assets in the Company's portfolio in an orderly manner. The Company will pursue its investment objective by effecting an orderly realisation of its assets while seeking to balance maximising returns for Shareholders against timing of disposals whilst ensuring the interests of residents are protected. Capital expenditure will be permitted where it is deemed necessary or desirable in connection to the realisation, primarily where such expenditure is necessary to protect or enhance an asset's realisable value, to comply with statutory or regulatory obligations, to protect other stakeholders, to comply with the terms of any funding arrangement or to facilitate orderly disposals.

About Gresham House and Gresham House Real Estate

Gresham House is an alternative asset manager committed to operating responsibly and sustainably, taking the long view in delivering sustainable investment solutions.

Gresham House Real Estate offers long-term equity investments into UK housing, through listed and unlisted housing investment vehicles, each focused on addressing different areas of the affordable housing problem. Each fund aims to deliver stable and secure inflation-linked returns whilst providing social and environmental benefits to its residents, the local community, and the wider economy.

Further information on ReSI plc is available at http://www.greshamhouse.com/real-assets/uk-housing/residential-secure-income-plc/, and further information on Gresham House is available at www.greshamhouse.com