18th Jun 2025 13:17
(Alliance News) - Residential Secure Income PLC on Wednesday said its loss narrowed in the first half of the financial year, despite a decline in property valuations due to higher gilt yields.
The investor in retirement living and shared ownership, that is now progressing a managed wind-down strategy, said its pretax loss narrowed to GBP6.4 million in the six months to the end of March from GBP10.4 million a year ago.
Income was down 3.3% to GBP15.0 million from GBP15.5 million. Net rental income was unchanged at GBP9.4 million.
The pretax loss narrowed despite an increased loss from a change in fair value of investment properties, as the loss increased to GBP15.5 million from GBP7.3 million.
Residential Secure benefited from a GBP4.0 million gain in the fair value of borrowings, swung from a GBP7.8 million loss a year prior.
"Interim results for the six months ended March 2025, demonstrate the board's and investment manager's continued focus on driving operational performance," said Chair Robin Whiteman.
Like-for-like rental reviews were up 4.0% in the period, compared to 6.5% a year ago.
Whiteman said this was "complemented by vigilance on operational expenditure, execution of the retirement asset management programme and reduced finance costs, following the full divestment of the local authority portfolio".
Finance costs were down 15% to GBP3.0 million from GBP3.6 million.
Net tangible assets were down 12% to 66.0 pence per share at the end of March from 74.6p at the end of September.
The maximum realisable net asset value per share was 76.0p, down 6.9% from 81.6p six months prior.
"ReSI's retirement and shared ownership portfolios, operate in two structurally supported sub asset classes of UK property, and remain rooted in relative value, scale and long-term fundamentals. As a result, despite a challenging macro environment, Jones Lang Lasalle, our sales agent, and the investment manager are seeing continued appetite from a range of potential purchasers for one or both of ReSI's portfolios," said Chair Whiteman.
Residential Secure said Lead Fund Manager Ben Fry is stepping down at the end of July. Mike Adams and Sandeep Patel will continue to execute the wind-down.
Shares in Residential Secure Income were down 0.3% at 59.04 pence in London on Wednesday afternoon.
By Michael Hennessey, Alliance News reporter
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