Residential Secure Income REIT has reported that its portfolio value at the end of 2019 slipped by £500,000 to £260.3m.
This was primarily due to its retirement homes portfolio, following a clarification from HMRC that from 1 November 2018 VAT is chargeable on property managers’ salaries. This impacted the quarter after being reflected in increased service charges payable by ReSI.
In addition, its net asset value fell from £187.5m at the end of September to £184.1m at the end of December.
Net asset value per share was also down to 107.7p at the end of 2019, compared to 108.6p at the end of September.
ReSI also reported that it has completed the purchase of 59 apartments at Clapham Park, SW4, intended for shared ownership.
More than half of the purchased units are already reserved at sales prices at least in line with the target at acquisition by customers who are expected to complete on shared-ownership leases in February 2020.
The purchase of the remaining 73 units at Clapham Park that ReSI has committed to buying, bringing the total number of units it will own at the scheme to 132, will complete before the end of March 2020.
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