20th May 2019 11:27
LONDON (Alliance News) - Residential Secure Income PLC said Monday its interim profit more than doubled in a strong year driven by growth in the value of its portfolio.
The property investor's pretax profit for the six months to the end of March was GBP7.7 million, up from GBP3.3 million the year before.
This was due to an increased gain in the fair value of investment properties to GBP5.2 million from GBP3.2 million, as well as a more than tripled net property income to GBP6.1 million from GBP1.9 million the prior year.
As at March 31, net asset value per share was 107.9 pence, up from 105.1p at the end of September.
During the six-month period, the company acquired 332 residential units across the UK for around GBP83 million. This has brought the total value of Residential Secure's 2,674-unit portfolio to GBP321 million as at March 31, up from GBP139.1 million the prior year.
Residential Secure declared an interim dividend of 2.5 pence per share, up from 1.5p the year before, and is targeting a full-year payout of 5.0p.
"ReSI has demonstrated its ability, through ReSI Housing, our Registered Provider of social housing, to acquire properties funded by government grant, including Shared Ownership. Having now acquired our first Shared Ownership investments, we are especially enthusiastic about the opportunities this sector presents," said Chair Robert Whiteman.
"Shared Ownership is increasingly being seen as an effective solution to lack of affordability across a range of value points, and is an efficient way for government grant funding to be used, as the grant translates directly into a subsidised level of rent," Whiteman added.
Shares in Residential Secure Income were up 1.2% at 97.80 pence on Monday.
Related Shares:
Residential Sec