Business
Net Asset Value and corporate update
Net Asset Value and corporate update.
About this update from Residential Secure Income Plc
[{"type":"text","content":"\n\n 1 August 2024\nResidential Secure Income plc\n \n(\"ReSI\" or the \"Company\") \n \nNet Asset Value and corporate update\n \nResidential Secure Income plc (LSE: RESI), which invests in independent retirement living and shared ownership to deliver secure, inflation-linked returns, is pleased to announce its unaudited third quarter net asset value (\"Net Asset Value\" or \"NAV\") as at 30 June 2024 and to update on recent corporate activity for the period.\n \nStrong operational performance, underpinned by recurring inflation linked rent growth delivering ample dividend coverage \n· Portfolio focused on direct leases with pensioners and part homeowners\n· Rent collection consistent at 99% for the quarter\n· Rental growth of 6.5% on 1,425 homes (48% of portfolio) giving 2.7% like-for-like growth\n· 100% shared ownership occupancy\n· Retirement occupancy continuing at 96% vs. 94% long-term average occupancy\n· Year-to-date dividend coverage of 123%1\n \n10 basis points outward yield shift in the quarter, outweighing valuation accretive inflation led rent growth, driving a 0.4% decline in like-for-like valuations\n· Total EPRA return for the quarter of 0.8% (0.6 pence per share (\"p\")) to give EPRA NTA of 76.7p (£142.0mn) as at 30 June\n· Driven by 1.0p, or 0.4%, decrease in like-for-like investment property values, as follows:\no 2.9p increase from inflation-linked rent reviews in the quarter\no 3.9p decrease resulting from a further 10 basis points outward yield shift\n· Diverse portfolio of 2,991 homes worth £315mn2\n· Loan-to-value ratio of 52%, down from 53% at 31 March 2024 and reduced to 41% when including 26.3% reversionary surplus\n \nStrategic initiatives, disposals and retirement asset management advancing\n· Sale of the remaining local authority asset on track and expected to complete in H2 2024, with building control signoff for works already complete still outstanding\n· Continuing to review opti...