ReSI posts interim rental growth amid value decline

Retirement living and shared ownership specialist Residential Secure Income has grown its rental income during the first half of its latest financial year, despite reductions in earnings and portfolio value. The REIT’s portfolio of 2,996 homes was valued at £317m, falling by 8.2% during the six months ending 31 March. EPRA NTA per share was down by 5.7% to 77.2p in the six months to 31 March, compared with September last year. However, net rental income was up by 6.8% to £9.4m, with rent review growth standing at 6.5%. The REIT collected 99% of rent owed during the period. Occupancy was at a record 96%, compared with 94% in H1 2023. The REIT said it was “advancing through due diligence” to sell its local authority portfolio. It made one £5.6m asset sale in April, slightly ahead of September book value. The proceeds will be used to repay its floating rate debt. It said it would continue to assess opportunities to make further disposals, although those “may take time to emerge” since investment volumes remain low until future interest rate cuts. Chairman Robert Whiteman said: “We continue to review opportunities to make further disposals that add value for shareholders, from which we would prioritise the return of capital. However, with investment market volumes expected to remain low until any future interest rate cuts, we expect opportunities may take time to emerge. In the meantime, we will maintain our focus on driving operational performance in the retirement portfolio, which should drive shareholder value.”