TIDMRESI
RNS Number : 4688O
Residential Secure Income PLC
30 January 2019
30 January 2019
Residential Secure Income plc
Net Asset Value & Corporate Update
Residential Secure Income plc ("ReSI") (LSE: RESI), which
invests in residential asset classes that comprise the stock of UK
social housing providers, is pleased to announce its unaudited net
asset value ("Net Asset Value" or "NAV") as at 31 December 2018 and
to provide an update on its corporate activity since 30 September
2018.
Highlights:
-- IFRS NAV per share increased to 105.9 pence(1) (30 September
2018: 105.1 pence), resulting in a NAV total return for the quarter
of 1.5% and taking the NAV total return since the admission of
ordinary shares on 12 July 2017 to 11.1%
-- Total portfolio value of GBP249.9 million, reflecting an
increase in the like-for-like value of GBP0.9 million
-- First shared ownership transaction with GBP16.5 million
purchase of portfolio of 34 new build homes from Crest Nicholson,
following July announcement that ReSI's wholly owned subsidiary
ReSI Housing Limited had achieved Registered Provider status with
the Regulator of Social Housing
-- Acquisition of a 39-unit Leased Rental Homes portfolio for a
total consideration of GBP6.5 million
-- GBP40 million of 25-year fixed rate debt secured against 823 retirement homes portfolio
-- Interim dividend announced of 1.25 pence per Ordinary Share,
in line with the 5 pence per Ordinary Share target for the current
financial year reaffirmed in the 30 September 2018 accounts(2)
-- Post period GBP300 million Housing Investment Partnership
agreement entered into with Morgan Sindall Investments to initially
target 1,500 new shared ownership homes
(1) Reflecting an independent valuation of the property
portfolio prepared on an IFRS basis.
(2) These are targets only and not a profit forecast. There can
be no assurance that the targets will be met.
The movement in NAV since publication of annual results is as
follows:
GBPm Pence per
share
Net Asset Value as at 30(th)
September 2018 183.6 105.1
------ ----------
Net Income for period 1.3 0.8
------ ----------
Valuation change 0.9 0.5
------ ----------
Dividend paid (1.3) (0.7)
------ ----------
Net capital reduction (3.4) (2.0)
------ ----------
Impact of reduction in
number of shares(3) 2.2
------ ----------
Net Asset Value as at 31(st)
December 2018 181.1 105.9
------ ----------
(3) The increase in Net Asset Value per share from the share
buyback was due to purchasing shares at a discount to NAV.
Ben Fry, of ReSI Capital Management Ltd, ReSI's fund manager,
said:
"The increase in NAV over the period primarily reflects the net
rental income from acquisitions, together with the valuation uplift
from rental growth in the retirement and local authority housing
portfolios. After successfully amassing a significant portfolio of
income producing retirement homes and local authority housing, we
are now predominantly focused on building further scale with a
portfolio of shared ownership properties. Having become, through
our wholly owned subsidiary ReSI Housing Limited, the first listed
investment fund to achieve Registered Provider status in July 2018,
we are well positioned to take advantage of the structural drivers
underpinning the housing market whilst leveraging the strength of
our public and private sector relationships."
The NAV has been calculated in accordance with International
Financial Reporting Standards and incorporates the independent
valuation on a "sum of the parts" basis, in accordance with, and
required by, international accounting standards. The NAV does not
include a provision for an interim dividend for the period from 1
October 2018 to 31 December 2018.
FOR FURTHER INFORMATION, PLEASE CONTACT:
ReSI Capital Management Limited
Ben Fry
Jonathan Slater
Alex Pilato
Mark Rogers
Richard Stubbs +44 (0) 20 7382 0900
Jefferies International Limited
Stuart Klein
Gary Gould +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 listed on the
premium segment of the Official List of the UK Listing Authority
and was admitted to trading on the Main Market of the London Stock
Exchange in July 2017.
ReSI has been established to invest in portfolios of Homes
across residential asset classes that comprise the stock of Housing
Associations and Local Authorities, comprising Shared Ownership
Homes and Rental Homes (being Market Rental Homes, Functional Homes
and Sub-Market Rental Homes) throughout the UK.
ReSI is managed by ReSI Capital Management Limited, a wholly
owned subsidiary of TradeRisks Limited which has a 17 year track
record of executing transactions within the UK social housing
sector and, to date, has arranged funding of over GBP10 billion in
the social housing, care and other specialist residential property
sectors.
ReSI seeks to deliver secure, long-dated, inflation-linked
income returns through investment in UK social housing. It aims to
meet demand from Housing Associations and Local Authorities for
alternative equity-like financing sources that allows them to
recycle capital back into socially and economically beneficial new
housing, making a meaningful contribution to the UK housing
shortage.
Homes acquired by ReSI will predominantly be on a freehold or
long leasehold basis (typically 99 years or more to maturity) and
benefit from long term (typically 20 years plus) inflation-adjusted
cash flows. Acquisitions by ReSI will be limited to Homes with
sufficient cashflows, counterparty credit quality and property
security that allow the Fund Manager to arrange long-term
investment grade equivalent debt.
Further information on ReSI is available at
www.resi-reit.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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