1 December 2021

Residential Secure Income plc

Dividend Declaration

Residential Secure Income plc ("ReSI") (LSE: RESI), which invests in independent retirement living and shared ownership to deliver secure, inflation-linked returns, is pleased to announce an increase to the dividend target to be paid in the financial year 30 September 2022. Reflecting the inflation linkage of the portfolio and that ReSI is now fully invested with a fully covered dividend from Q4 2021 (based on recurring income), the dividend target has been increased in line with September CPI of 3.1% resulting in a new annual dividend target of 5.16 pence per Ordinary Share to be paid in the financial year to 30 September 2022¹.

In line with this target ReSI has today declared a quarterly interim dividend of 1.29 pence per Ordinary Share to be paid on 21 January 2022 to Shareholders on the register as at 10 December 2021. The ex-dividend date is 9 December 2021.

0.90 pence of the dividend will be paid as a Property Income Distribution ("PID") in respect of the Company's tax-exempt property rental business and 0.39 pence will be paid as an Ordinary UK dividend ("non-PID"). 

Over time, ReSI expects its dividends to increase broadly in line with inflation and targets a total return in excess of 8% per annum¹. ReSI intends to pay dividends to Shareholders on a quarterly basis.

¹ This is a target only and not profit a forecast. There can be no assurance that this target will be met.

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About Residential Secure Income plc

Residential Secure Income plc (LSE: RESI) is a real estate investment trust (REIT) focused on delivering secure, inflation-linked returns with a focus on two resident 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 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% per annum. Including recently committed acquisitions, ReSI's portfolio comprises 3,051 properties, with an (unaudited) IFRS fair value as at 30 September 2021 of £351m[i].

ReSI'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'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 managers.

ReSI is managed by ReSI Capital Management Limited, whose immediate parent company, TradeRisks Limited, has been active within the social housing sector for over 20 years as a funding arranger and advisor and, over the last four years, as an investor through ReSI.

ReSI Capital Management and its parent, TradeRisks, were acquired by Gresham House in March 2020, further increasing the investment expertise available to ReSI. The housing investment team at Gresham House has 19 members and growing, with an average of 18 years' relevant experience, covering fund management, housing investment, social housing management and financial and risk expertise.

Gresham House plc is a London Stock Exchange quoted specialist alternative asset manager committed to operating responsibly and sustainably, taking the long view in delivering sustainable investment solutions.

Further information on ReSI is available at www.resi-reit.com, and further information on Gresham House is available at www.greshamhouse.com