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Residential Secure Income posts impressive results

Residential Secure Income lives up to name with 99% rent collection

Residential Secure Income, which invests in independent retirement living and shared ownership property, has reported a net asset value (NAV) total return for the year to 30 September of 7.5%.

In a positive set of annual results, the group also posted strong income and capital growth. Highlights included:

  • EPRA adjusted earnings up 42%, to £7.1m (FY20: £5.0m)
  • Net rental income up 16%, to £13.2m (FY20: £11.3m)
  • EPRA Net Tangible Assets of £184.7m, or 107.9p per share, up 2.7% (FY20: 105.1p)
  • Investment property valuation up 2.5%, or £7.7m, to £351m, driven by rental growth and shared ownership portfolio full occupancy
  • 46% loan to value (LTV) ratio, weighted average debt maturity of 22 years and average cost of debt of 2.3% at year end (2.6% a year earlier)
  • 5p dividend paid in FY21, as targeted, fully covered by recurring income from Q4 2021, ahead of schedule
  • FY22 dividend target to be increased to 5.16p per share

Operational highlights

  • Shared ownership occupancy rose to almost 100% due to strong demand
  • £40m deployed into 351 shared ownership homes, exceeding £34m target
  • Retirement voids reduced to 7% in H2 2021, in line with pre COVID-19 average
  • Resilient rent collection of 99% for the year, in line with normal economic conditions

Robert Whiteman CBE, chairman, said: “We are delighted to report rising income, driving a fully covered increased dividend, ahead of schedule. We have built a platform of resilient cash-generative assets and long-term debt which will continue to drive long-term, inflation-linked dividends and capital growth.

“Delivering high quality housing in the UK needs long-term institutional investors like ReSI. The growing institutionalisation of housing makes for more professional landlord-tenant relationships, benefiting tenants and income-seeking investors alike.

“Having our own for-profit Registered Provider, combined with Gresham House’s investment processes and solid partnerships, means we can deliver housing that’s aligned and supported by government policy, backed by robust governance.”

RESI : Residential Secure Income posts impressive results

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