Clarification following regulator's report

12 April 2019

Residential Secure Income plc

Clarification following publication of regulator's report

Residential Secure Income plc ("ReSI") (LSE: RESI), which invests in affordable shared ownership, retirement and local authority housing, notes the report "Lease-based providers of specialist supported housing" ("the Report") published on 4 April 2019 by the Regulator of Social Housing.

For clarification, ReSI has never had any exposure to the specialised supported housing sector, the subject of the Report. ReSI's strict investment strategy means its acquisitions are limited to those assets with sufficient cashflows, counterparty credit quality and property security to be capable of supporting long-term investment grade equivalent debt. Accordingly, ReSI's Housing Association partners are typically large, credit-worthy institutions who own significant portfolios of property, currently including Places for People, owning or managing 198,000 homes and rated G1/V1, and Metropolitan Thames Valley, owning or managing 57,000 homes and rated G1/V2.

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About Residential Secure Income plc

Residential Secure Income plc (LSE: RESI) is listed on the premium segment of the Official List of the UK Listing Authority and was admitted to trading on the Main Market of the London Stock Exchange in July 2017.

ReSI has been established to invest in shared ownership and rental portfolios of Homes across residential asset classes that comprise the stock of Housing Associations and Local Authorities throughout the UK. To date it has committed c. £300 million, comprising a portfolio of 2,674 properties, across a mixture of shared ownership, local authority and retirement housing.

ReSI is managed by ReSI Capital Management Limited, a wholly owned subsidiary of TradeRisks Limited which has an 18 year track record of executing transactions within the UK social housing sector and, to date, has arranged funding of over £10 billion in the social housing, care and other specialist residential property sectors.

ReSI seeks to deliver secure, long-dated, inflation-linked income returns through investment in UK social housing. It aims to meet demand from Housing Associations and Local Authorities for alternative equity-like financing sources that allows them to accelerate development of socially and economically beneficial new housing making a meaningful contribution to the UK housing shortage.

Homes acquired by ReSI will predominantly be on a freehold or long leasehold basis (typically 99 years or more to maturity) and benefit from long term (typically 20 years plus) inflation-adjusted cash flows. Acquisitions by ReSI will be limited to homes with sufficient cashflows, counterparty credit quality and property security that allow the Fund Manager to arrange long-term investment grade equivalent debt.

Further information on ReSI is available at www.resi-reit.com