Business
Portfolio Update to 30 June 2023
Portfolio Update to 30 June 2023.
About this update from Residential Secure Income Plc
[{"type":"text","content":"\n\n3 August 2023\nResidential Secure Income plc\n \nNet Asset Value and corporate update\n \nResidential Secure Income plc (\"ReSI 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 2023 and to update on recent corporate activity for the period.\n \nStrong operational performance reflecting defensive nature of assets\n· Portfolio focused on direct leases with pensioners and part home owners\n· Rent collection constistent at 99% for the quarter\n· Rental growth of 6.4% on 1,084 directly rented homes (33% of portfolio) giving 2.5% like-for-like growth\n· 99% shared ownership occupancy\n· Retirement occupancy continues at 94% in line with long-term average occupancy\n \nValuations broadly flat with strong inflation-linked rent growth, offsetting outward yield shift in the quarter\n· Total EPRA return for the quarter of 1.0% (0.9 pence per share (\"p\")) to give EPRA NTA of 88.6p (£164.1mn) as at 30 June\n· Driven by 0.4p, or 0.2%, increase in like-for-like investment property values, as follows:\no 4.9p increase from inflation-linked rent reviews in the quarter\no 4.5p decrease resulting from a further 13 basis points outward yield shift\n \nResilient balance sheet with long-term and low-cost debt\n· Diverse portfolio of 3,298 homes worth £357mn\n· 22-year average debt maturity, 90% fixed or hedged with low 2.5% weighted average coupon\n· Loan-to-value ratio of 49%, down from 52% at 31 March 2023 and reduced to 41% when including 20% reversionary surplus\n \nOutlook\n· Acute need for more affordable homes with estimated need for £34bn1 of annual investment in the UK\n· Particular shortage of affordable homes for home ownership and suitable accommodation for independent later living for the growing elderly population\n· ...