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 pence1 (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 £249.9 million, reflecting an increase in the like-for-like value of £0.9 million
First shared ownership transaction with £16.5 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 £6.5 million
£40 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 accounts2
Post period £300 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:
| £m | Pence per share | |
| Net Asset Value as at 30th 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 shares3 | 2.2 | |
| Net Asset Value as at 31st 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.