Residential Secure Income reports rise in NTA per share

(Sharecast News) - Residential Secure Income (ReSI) reported a 2.1% rise in EPRA net tangible assets to 66.4p per share for the quarter ended 30 June on Thursday, reflecting solid rental income growth and sustained high occupancy across its portfolios, as it continued to implement its managed wind-down strategy. The London-listed firm said the quarterly uplift in net asset value was driven by inflation-linked rental growth, which added 2.1p, partially offset by a 25 basis point outward yield shift that reduced property values by 2.3p.

Overall, like-for-like investment property values declined by 0.2p in the period.

Adjusted EPRA earnings of 1.52p per share resulted in 148% dividend cover, supporting the declaration of a 1.03p interim dividend.

"Against the backdrop of the orderly wind-down, the investment manager and board have advanced several key operational workstreams," said chairman Rob Whiteman.

"Earnings growth has been delivered, as evidenced through continued high levels of occupancy ... alongside continued rental growth in both portfolios."

Operational performance remained robust, with rent collection steady at over 99%, and rental growth of 3.56% on half the portfolio.

Retirement living occupancy held at a record 97%, while shared ownership properties remained fully occupied.

Re-letting times improved, with void weeks reduced to 7.9, down from 8.1 in the first half and 11.5 in 2024.

ReSI also reported progress on its portfolio realisation strategy.

Following targeted marketing, the board said it received multiple indicative offers for its shared ownership business, ReSI Housing, with shortlisted bidders now conducting detailed due diligence.

Separately, the retirement living portfolio had been formally launched for sale, following unsolicited interest earlier in the year.

"We conservatively note the positive initial market reaction to the retirement portfolio," Whiteman added, reiterating that the board remained focused on progressing strategic disposals while continuing to deliver shareholder returns during the realisation period.

Annualised net rental yields now stood at 6.54% for the retirement portfolio and 4.32% for shared ownership.

The board confirmed that quarterly dividends would continue through the realisation period, subject to profitability, realisation progress, and capital requirements.

At 1149 BST, shares in Residential Secure Income were up 2.08% at 58.8p.

Reporting by Josh White for Sharecast.com.