2Q21 NAV & Corporate Update

10 May 2021

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, is pleased to announce its unaudited second quarter net asset value ("Net Asset Value" or "NAV") as at 31 March 2021 and to update on recent corporate activity for the period.

Resilient 2Q 2021 performance

·      IFRS NAV per share of 105.1 pence¹ (31 December 2020: 105.0 pence)

·      Total property portfolio value of £325.2 million

o  up 0.4% or £1.3 million on a like-for-like fair value basis

·      Total portfolio rent collection continues to be secure, with 99% of rent collected in the quarter, unchanged throughout the COVID-19 crisis and in line with normal performance, continuing to demonstrate the secure nature of ReSI's cashflows

Dividend cover increasing and dividend maintained

·      Net income for the quarter up 32% to £1.7m or 1.0p per share (1Q21: £1.3m or 0.8p per share)

·      Dividend cover of 82% for the quarter, slightly ahead of 80% full year target² (calculated on recurring profit before valuation movements)

·      Full dividend cover on track to be achieved in July 2021² (on a look-forward basis)

·      Interim dividend maintained at 1.25 pence per Ordinary Share for the quarter ended 31 March 2021, in line with the target of 5.0 pence per Ordinary Share for the current financial year²

NAV Movement

The movement in NAV since 31 December 2020 is as follows:

ReSI expects to update shareholders further in its upcoming Interim results which will be published in late May 2021.

Ben Fry, Head of Housing Investment at Gresham House, commented:

"We are delighted to report an improved earnings position, with dividend maintained and dividend cover continuing to rise. This results from swiftly occupying recently acquired shared ownership homes, and improving occupancy of the retirement portfolio, where voids have decreased and are now approaching pre-pandemic levels of around 7%. Combined with becoming fully invested at the end of March, this puts ReSI firmly on the path to full dividend coverage."

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.

FOR FURTHER INFORMATION, PLEASE CONTACT: 

Notes to Editors

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% per annum. Including recent committed acquisitions, ReSI's portfolio comprises 3,060 properties, with an (unaudited) IFRS fair value of £346m[i].

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 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 15 members and growing, with an average of 20 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 

Further information on Gresham House plc is available at www.greshamhouse.com