Business
COVID-19 Update
COVID-19 Update.
About this update from Residential Secure Income Plc
[{"type":"text","content":"\n \n \n RNS Number : 9590H\n Residential Secure Income PLC\n 30 March 2020\n \n \n \n \n 30 March 2020\n \n \n Residential Secure Income plc\n \n \n COVID-19 Update\n \n \n \n \n \n Residential Secure Income plc (\"ReSI\" or the \"Company\") (LSE: RESI),\n \n which invests in affordable shared ownership, retirement and local authority housing, today provides an update on its position with regards to the COVID-19 pandemic.\n \n \n \n \n \n Since the onset of the crisis, our overriding priority has been and remains the safety of our residents, stakeholders and staff. Our property team, led by Pete Redman, are working closely with our property managers and lessees across ReSI's portfolio to ensure we continue to provide safe homes for our residents and shared owners. \n \n \n \n \n \n In addition, ReSI Capital Management has enacted its business continuity plan, utilising the resources of both TradeRisks and its new parent Gresham House, with full remote-working for all office based staff. \n \n \n \n \n \n PORTFOLIO UPDATE\n \n \n Overall the Company has a defensive portfolio which has been positioned to survive through economic stress. Since ReSI's rental income is primarily supported by residents' pensions or housing welfare subsidy systems, including leases to local authorities, the Company believes that increased unemployment is unlikely to have a material impact on performance. ReSI anticipates that the main impact of the COVID-19 crisis will be a delay in further expanding its income generating portfolio and an increase in void levels within the retirement portfolio. \n \n \n \n \n \n While it is too early to provide a clear picture of the implications of the pandemic, a more detailed summary of the likely impact on the Company's individual portfolios by asset class is as follows:\n \n \n \n \n \n Local Authority Housing\n \n \n ·\n This portfolio, which accounted for 18% of the Company's FY2019 net leveraged rental income, is fully leased to Luton Borough Council, which has as AA equivalent credit rating, and therefore no financial impact is expected.\n \n \n \n \n \n Independent Retirement Rentals\n \n \n · \n Provides independent living, with no care provision, for retirees over the age of 60, and is the Company's large...