31st Jan 2024 11:39
(Alliance News) - Residential Secure Income PLC on Wednesday said it was making good progress on the sale of its local authority portfolio, though it declared a lower payout amid a net asset value fall.
The real estate investment trust, focused on retirement living and shared ownership homes, said net asset value per share declined 5.7% to 85.9 pence at its December 31 first-quarter end, from 91.1p at September 30.
Residential Secure shares rose 2.3% to 53.01 pence each on Wednesday morning in London.
Over the same three months, EPRA net tangible assets NAV contracted 2.1% to 80.1p from 81.8p.
The company declared a quarterly dividend of 1.03 pence per share, down 20% from 1.29p a year prior.
Looking ahead, the company noted "strong" rental inflation-linked growth which it anticipated to continue and to be buoyed by wage and pension growth, amid "strong and accelerating institutional appetite for residential exposure."
Ben Fry, managing director of Housing at Gresham House, which manages the company, said: "We're pleased to be making good progress on the sale of our local authority portfolio, with one asset exchanged in line with book value and the remainder advancing through due diligence. These sales will enable the repayment of all our floating rate debt, significantly strengthening our balance sheet. That will allow us to strengthen the quality of our dividend cover, better buttressing ReSI against potential future economic headwinds."
He added: "Long-term demand drivers for affordable, accessible or retirement housing remain very strong, and this continues to be a highly attractive part of the real estate sector for us to be invested in."
By Tom Budszus, Alliance News slot editor
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