TIDMRESI
RNS Number : 4720O
Residential Secure Income PLC
01 February 2023
1 February 2023
Residential Secure Income plc
Net Asset Value and corporate update
Residential Secure Income plc ("ReSI plc" or the "Company")
(LSE: RESI), which invests in independent retirement living and
shared ownership to deliver secure, inflation-linked returns , is
pleased to announce its unaudited first quarter net asset value
("Net Asset Value" or "NAV") as at 31 December 2022 and to update
on recent corporate activity for the period.
Strong operational performance reflecting defensive nature of
assets
-- Portfolio focused on direct leases with pensioners and part home owners
-- Rent collection remains at 99% for the quarter
-- Rent al growth of 5.3% on 502 properties (15% of portfolio)
representing 1.0 % like-for-like growth
-- 33 new build shared ownership homes completed on 19 December 2022, with 28 already reserved
-- 99% like-for-like shared ownership occupancy(1) (95%
including new homes acquired in Dec 2022)
-- Retirement occupancy continues at 94% (2) ahead of long-term average occupancy of c. 93%
Valuation decline driven by macro environment
-- Total EPRA return for the quarter of -9.9% (10.5 pence per
share ("p")) to give EPRA NTA of 94.3p (GBP174.6mn) as at 31
December 2022
-- Driven by 5.4% reduction in like-for-like investment property value s , representing 11 p
o 8p from 25 bps increase in the discount rate used in
discounted cash flow property valuations
o 3 p caused by reduced inflation projections and expected lower
receipts from staircasing
Resilient balance sheet with long-term and low-cost debt
-- Diverse portfolio of 3,30 3 homes worth GBP364mn (3)
-- 22-year average debt maturity, 90% fixed or hedged with low 2.5% weighted average coupon
-- Loan-to-value ratio of 48%, reduced to 41% when including 19% reversionary surplus
Continued focus on dividend cover at 5.16p in FY 2023 (4)
-- Quarterly dividend of 1.29p announced today in line with target
-- Focus on i mproving dividend cover in FY2023 (97% FY22)
despite headwinds from increasing interest cost on 10% of debt that
is floating , and , energy costs in our retirement communal
areas
Outlook: Well positioned for future growth
-- 97% inflation-linked rents provides strong basis for future growth
-- Accelerating tenanted shared ownership opportunities as
housing associations look to fund increasing costs of investing in
their existing stock whilst maintaining development programmes
-- Institutional appetite for residential income generating assets remains strong
NAV movement
The movement in NAV between 30 September 2022 and 31 December
2022 (the "Period") is as follows:
EPRA NTA IFRS NAV
---------------------------------
GBP 'mn Pence GBP'mn Pence
per Ordinary per Ordinary
Share Share
-------- -------------- ------- --------------
Net Asset Value at 30 September
2022 196.5 106.1 201.4 108.8
-------- -------------- ------- --------------
Net income for the Period 1.9 1.0 1.9 1.0
-------- -------------- ------- --------------
Property valuation change (20.3) (11.0) (20.2) -10.9
-------- -------------- ------- --------------
Debt valuation / indexation(*) (1.1) (0.5) 1.3 0.7
-------- -------------- ------- --------------
Dividend paid (2.4) (1.3) (2.4) -1.3
-------- -------------- ------- --------------
Net Asset Value at 31 December
2022 174.6 94.3 182.0 98.3
-------- -------------- ------- --------------
Total return (19.5) (10.5) (17.0) (9.2)
-------- -------------- ------- --------------
*Note: In accordance with the EPRA Best Practice
Recommendations, EPRA NTA reflects the amortised cost of
indebtedness, rather than its fair value, and thus the EPRA NTA
movement reflects the indexation of USS debt.
Ben Fry, Managing Director, Housing at Gresham House,
commented:
"We're pleased by ReSI's operational performance this quarter,
with strong rental growth, continued high occupancy and good demand
for new homes. As with many other REITs and investment companies,
the difficult UK macro environment in the last three months of 2022
drove a spike in gilt yields, which has directly impacted our
valuations as at the end of December.
"Valuations of course remain sensitive to moves in gilt yields,
but we see downward pressure on valuations starting to ease, while
inflationary pressures are hopefully nearing their peak. Mortgage
rates remain well below our portfolio stress-test levels, and with
rents rising less than mortgage costs, the shared ownership model
helps insulate residents from cost of living pressures. Our
retirement residents typically fund rent payments with
inflation-linked pension income. Across the whole portfolio our
continued efforts to improve our homes' energy efficiency is
helping to keep residents' energy bills in check.
"The quality of ReSI's operational business model, with
individual tenant contractual relationships, rent collection stable
at almost 100%, and very high levels of occupancy, ensures that our
focus can remain on delivering dividend cover and underlying
performance for investors."
For further information, please contact:
Gresham House Real Estate
Ben Fry
Brandon Holloway +44 (0) 20 7382 0900
Peel Hunt LLP
Luke Simpson
Huw Jeremy +44 (0) 20 7418 8900
KL Communications gh@kl-communications.com
Charles Gorman +44 (0) 20 3995 6673
Charlotte Francis
Millie Steyn
About ReSI plc
Residential Secure Income plc ("ReSI plc" LSE: RESI) is a real
estate investment trust (REIT) focused on delivering secure,
inflation-linked returns with a focus on two resident sub-sectors
in UK residential - independent retirement rentals and shared
ownership - underpinned by an ageing demographic and untapped and
strong demand for affordable home ownership.
ReSI plc targets a secure, long-dated, inflation-linked dividend
of 5.16p per share p.a. (paid quarterly) in FY23 and a total return
in excess of 8.0% per annum(4) . As at 31 December 2022, including
committed acquisitions, ReSI plc's portfolio comprises 3,303
properties, with an (unaudited) IFRS fair value of GBP364 mn(5)
.
ReSI plc's purpose is to deliver affordable, high-quality, safe
homes with great customer service and long-term stability of tenure
for residents. We achieve this through meeting demand from housing
developers, housing associations, local authorities, and private
developers for long-term investment partners to accelerate the
development of socially and economically beneficial affordable
housing.
ReSI plc's subsidiary, ReSI Housing Limited, is registered as a
for-profit Registered Provider of social housing, and so provides a
unique proposition to its housing developer partners, being a
long-term private sector landlord within the social housing
regulatory environment. As a Registered Provider, ReSI Housing can
acquire affordable housing subject to s106 planning restrictions
and housing funded by government grant.
About Gresham House and Gresham House Real Estate
Gresham House is a London Stock Exchange quoted specialist
alternative asset manager committed to operating responsibly and
sustainably, taking the long view in delivering sustainable
investment solutions.
Gresham House Real Estate has an unparalleled track record in
the affordable housing sector over 20 years, with senior members
having an average of c.30 years' experience.
Gresham House Real Estate offers long-term equity investments
into UK housing, through listed and unlisted housing investment
vehicles, each focused on addressing different areas of the
affordable housing problem. Each fund aims to deliver stable and
secure inflation-linked returns whilst providing social and
environmental benefits to its residents, the local community, and
the wider economy.
Further information on ReSI plc is available at
www.resi-reit.com , and further information on Gresham House is
available at www.greshamhouse.com
Notes:
1. At 31 December 2022, based on homes owned at the start of the quarter.
2. Twelve month trailing average.
3. Including GBP2mn of committed acquisitions.
4. The dividend target and total return target are targets only
and are not profit forecasts. There can be no assurance that either
target will be met, and they should not be taken as an indication
of the Company's future results.
5. Excluding the finance lease gross up and including GBP2mn of committed acquisitions.
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END
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February 01, 2023 02:00 ET (07:00 GMT)
Residential Secure Income (LSE:RESI)
過去 株価チャート
から 10 2024 まで 11 2024
Residential Secure Income (LSE:RESI)
過去 株価チャート
から 11 2023 まで 11 2024
