Residential Secure Income (RESI) H2 2024 earnings summary

Executive summary

• The board initiated an orderly wind-down of the trust, ratified at the December AGM with 99.7% shareholder approval, aiming to maximize shareholder value and protect resident interests.

• The trust owns nearly 3,000 homes valued at over £300 million, with a market cap just over £100 million, far below the original £1 billion target.

• Portfolio now focused on retirement and shared ownership housing after full exit from local authority assets.

• Persistent discount to NAV, low liquidity, and market challenges prompted the wind-down decision.

• Underlying asset performance remains robust, with strong occupancy and rent collection.

Financial highlights

• Like-for-like rental growth of 5.8% year-over-year, with record 96% retirement occupancy and 100% shared ownership occupancy; over 99% rent collection.

• Adjusted earnings grew 9% to £9.5mn (5.1p per share), covering the rebased dividend by 124%.

• Gross rental revenue increased 7%, net rental income up 5% to £18.9 million.

• EPRA NTA return was -4%, with EPRA NTA at 74.6p per share and LTV at 52%.

• Like-for-like portfolio valuation decreased by 3.4%; total NAV return for the year was -3.1p, mainly due to property valuation declines from outward yield shifts.

Outlook and guidance

• Full wind-down expected to take 12–24 months, with timing dependent on macroeconomic factors and asset management progress.

• Dividend outlook to be evaluated quarterly, balancing REIT status, asset realisations, and reinvestment; no set dividend target for FY25.

• Focus on maximizing value through strategic asset management, simplification of portfolio, and timing of sales.