Residential Secure Income has observed a slight uplift in transactional activity during lockdown, noting that three shared-ownership completions and four reservations have transacted since 30 March.
This followed an initial slowdown in activity as the country entered lockdown. According to ReSI, the increase indicates a “gradual reversal” of this trend, with “virtual viewings also increasing”.
ReSI also said it is likely it will not suffer any material impact from the economic slowdown caused by Covid-19, after collecting 98% of rent due in April.
However, the company said it expects some increase in void levelsin its retirement portfolio, as well as a delay in expanding its shared-ownership portfolio.
The company, which specialises in shared-ownership, retirement and local authority housing, collected 98% of April rent by 27 April, with further rent to be received from local authorities paying at the end of the month.
Its rental income is primarily supported by residents’ pensions or housing welfare subsidy systems, including leases to local authorities.
IFRS NAV per share stood at 106.9p, down on 107.7p at the end of December.
Like-for-like portfolio valuation dipped by 0.1%, after recording a 1.2% reduction in net present value of cashflows in its independent retirement rental portfolio caused by the onset of Covid-19.
However, ReSI said this was offset by a 10% valuation gain in the shared ownership portfolio as it “progresses towards full income generation”.
Its total property portfolio value stood at £276.9m, up from £260.3m in December.
As of today, ReSI has 93 completed shared-ownership homes with 55 occupied, 26 reserved and moving to completion and 12 currently available.
ReSI additionally aims to “leverage the buying power” of Gresham House to reduce its operating expenses. Gresham House bought ReSI’s fund manager group in March.
The company plans to pay its quarterly dividend of 1.25p per ordinary share for the period from 1 January to 31 March 2020 in full. It also reaffirmed plans to pay out its target dividend of 5p per ordinary share for the current financial year.
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