Residential Secure Income reports interims after busy period of portfolio building – Residential Secure Income (RESI), the affordable shared ownership, retirement and local authority housing investor, has announced its interim results covering the six months to 31 March 2019. The portfolio benefits from 96% of rental income being subject to contractual inflation-linked rental uplifts.
Financial highlights
- The underlying portfolio delivered a NAV total return of 4.7 pence per share 14.1 pence since (admission in 2017).
- Earnings per share for the first half increased 145% to 4.5 pence and on an annualised basis equalled those for the full year 2018 of 9.0 pence.
- Annualised net rental income increased 125% to £11.5m compared to 31 March 2018 (£5.1m) and 9.5% since the 2018 year-end (£10.5m), representing a 5.1% net yield on capital deployed to income producing assets.
Portfolio highlights
- £83m invested in 332 residential units during the period, bringing the total invested since IPO to £302m. The portfolio now comprises 2,435 residential units across 660 unique locations serving Shared Ownership, retirement and Local Authority housing tenants
- Entry into the Shared Ownership sector with £77m invested in the acquisition of 166 residential units for delivery as Shared Ownership using grant funding from the Greater London Authority’s “Homes for Londoners” programme.
- £60m acquisition of 132 apartments at Clapham Park from Metropolitan Thames Valley Housing in March 2019.
- Execution of a £300m housing investment agreement with Morgan Sindall investments, initially targeting 1,500 new shared ownership homes.
Jonathan Slater, CEO of ReSI Capital Management, the manager, said the following: “During the first half we have made significant progress in the delivery of our stated strategy, having continued to add to our portfolio through a number of acquisitions and, most notably, through our entry into the Shared Ownership sector, which we have identified as the area of future growth for RESI. The quality of RESI’s portfolio is clearly reflected in the results we have announced today and particularly in the valuation uplift, which was driven primarily by contractual inflation-linked rental increases flowing through into valuation accretions and our own asset management initiatives. This puts us on track to continue to achieve the return targets set at the time of our IPO and the delivery of visible and sustainable income on behalf of our shareholders, while supporting the provision of much needed affordable accommodation across the UK.”
RESI: Residential Secure Income reports interims after busy period of portfolio building