Residential Secure Income reports 15% growth in adjusted earnings

LONDON - Residential Secure Income plc (LSE:RESI) reported a 15% increase in adjusted earnings to £5.1 million for the six months ending March 31, 2025, despite facing valuation pressures from elevated gilt yields.

The company, which is implementing a managed wind-down strategy, achieved like-for-like rental growth of 4.0% while maintaining rent collection at nearly 100%. This performance contributed to dividend coverage of 134%, up from 117% in the same period last year.

RESI’s EPRA Net Tangible Assets (NTA) declined 12% to 66.0 pence per share, primarily due to a 4.8% like-for-like decrease in property valuations caused by higher long-term gilt yields. The company’s maximum realisable net asset value stands at 70.2 pence per share as of March 31.

The company’s portfolio consists of 2,956 homes valued at £294.5 million, with a 35% potential uplift based on vacant possession value compared to fair value. RESI maintained record occupancy levels of 97% in its retirement portfolio and 100% in its shared ownership portfolio.

As part of its orderly wind-down, RESI completed the divestment of its local authority portfolio in January 2025, generating £15 million in net proceeds. The company has fully paid down its floating rate debt and canceled its Santander (BME:SAN) revolving credit facility on June 12, replacing it with a 2.5-year facility with Shawbrook at a 4.20% margin.

Robert Whiteman CBE, Chairman of RESI, noted that despite challenging market conditions, the company is seeing continued interest from potential purchasers for its retirement and shared ownership portfolios.

The company also announced that Ben Fry will step down as lead fund manager on July 31, 2025, with Mike Adams and Sandeep Patel continuing to manage day-to-day operations with support from the Gresham House team.

This article is based on information from the company’s press release statement.

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