Residential Secure Income has collected 99% of rent for the quarter, a rate that has been unchanged throughout the pandemic.
The group said this demonstrated the secure nature of its cashflows from its affordable shared ownership, retirement and local authority housing portfolio, with rents underpinned by pensions, housing welfare, below market rents and shared owner stakes.
IFRS net asset value (NAV) was unchanged in the quarter to the end of December 2020 at 105.0p per share.
Its portfolio value was up 0.6% to £304.6m, driven by its shared ownership portfolio that has moved towards being full income generation.
Earnings per share is on track to grow to at least 4.0p for the year to 30 September 2021, the group said, and meet its October 2021 run-rate dividend cover target.
It has maintained a quarterly dividend of 1.25p per share, in line with its target of 5.0p per share for its financial year.
Growing its shared ownership portfolio
The group is focused on growing its shared ownership portfolio and in December 2020 exchanged contracts to buy 85 newly completed properties for £29m . That purchase will bring its share ownership portfolio to 290 homes.
Investment manager Ben Fry said:
“While the ongoing pandemic continues to present unique circumstances, the underlying portfolio continues to trade well with strong rent collection and increased occupancy in our shared ownership homes, as well as further progress reducing retirement voids over the quarter. Our latest acquisition alongside additional investment opportunities which we expect to complete over the next six months will ensure the company is fully deployed and well placed to meet our earnings and dividend targets for this year and beyond.”
RESI : Residential Secure Income lives up to name with 99% rent collection