ReSI Reports Full Year 2025 Results Amid Managed Wind-Down

Valuations moved the other way. A 50 basis point outward shift in the weighted average portfolio yield to 5.8% drove a 6.2% like-for-like decline in property values to £287.4 million. EPRA NTA per share fell to 63.3 pence, and EPRA NTA total return was minus 9.6%. IFRS NAV per share was 72.5 pence, helped slightly by a £0.6 million benefit from the valuation of the USS debt, which is not included in EPRA NTA.

Quick jargon check:

• EPRA NTA is a property sector measure of net tangible assets per share that strips out certain items to standardise NAV across REITs.
• Yield shift refers to the capitalisation rate used by valuers. When yields move up, values typically move down.
• Dividend cover is earnings divided by dividends. Above 100% indicates the dividend is covered by underlying earnings.

Key numbers at a glance

Metric	FY25	FY24
Like-for-like rental reviews	3.4%	5.8%
Rent collection	99%	99%
Gross rental income	£29.8 million	£29.9 million
Net rental income	£18.7 million	£18.9 million
Adjusted EPRA earnings	£10.5 million	£9.5 million
Adjusted EPRA EPS	5.7p	5.1p
Dividend per share paid	4.12p	4.12p
Dividend cover	137%	124%
Portfolio valuation	£287.4 million	£310.6 million
Weighted average portfolio yield	5.8%	Not disclosed
EPRA NTA per share	63.3p	74.6p
EPRA NTA total return	(9.6)%	(3.7)%
IFRS NAV per share	72.5p	81.6p
Loan to value (LTV)	51.3%	51.7%
Homes	2,935	Not disclosed

Balance sheet and debt: leverage steady, maturities long

Loan to value stands at 51.3% versus 51.7% last year. LTV is simply debt divided by property value. The company notes an average debt maturity of 21 years, which supports financing stability. Proceeds from the local authority portfolio sale were used to repay floating rate debt, which helps in a higher-rate environment.

The sales narrative now intertwines with debt structure. Because buyers are expected to port the existing debt instead of repaying it, the flagged debt break gains that support the 68.2 pence maximum realisable NTA may not crystallise. That detail matters for the eventual cash outcome.

Operations: high occupancy, strong collections and embedded value

Operationally, ReSI’s assets continue to do what they say on the tin. Retirement occupancy averaged a record 97%, shared ownership is fully occupied, and rent collection exceeded 99%. Customer satisfaction in the in-house retirement property management team was 80%.

The portfolio comprises 2,935 homes worth £287.4 million, focused on direct leases to pensioners and part homeowners. ReSI highlights a £103.2 million reversionary surplus, a 35.9% uplift of vacant possession value compared to fair value. Reversionary surplus is the extra value you might unlock over time as constraints fall away, although it is not cash today.

What matters from here

• Completion of disposals: Both major portfolios are under offer and in exclusivity. Execution risk remains while due diligence, lender engagement and documentation run their course.
• Pricing vs book value: Management acknowledges pricing is aligned with current sentiment rather than historical valuations. That points to valuation realism rather than operational weakness.
• Realisable NAV: The 68.2 pence per share figure represents a maximum realisable outcome including debt break gains at the balance sheet date. If debt is ported, those gains may not be realised.
• Dividend policy: The dividend was fully paid at 4.12p and covered 137% in FY25. Future dividend intentions during the wind-down are not disclosed.
• Market sensitivity: Valuations remain exposed to long-dated gilt yields. A further outward yield shift would pressure NTA. Conversely, a rally in yields would support values.

My take: solid operations, realistic pricing, and a value-returning endgame

ReSI’s FY25 shows a classic split between cash flow resilience and market-driven valuation pressure. On the positive side, rent collection above 99%, record 97% retirement occupancy and 11% EPS growth are exactly what you want to see from inflation-linked residential assets. Dividend cover of 137% underlines the strength of the income engine.

On the negative side, a 6.2% like-for-like valuation decline, EPRA NTA down to 63.3p and a minus 9.6% total return reflect a tougher market and higher required yields. The company’s candid guidance that pricing is aligned with current sentiment sets realistic expectations for sale proceeds.

As a wind-down vehicle now, ReSI is about capital recovery, not expansion. The headline 68.2 pence maximum realisable NTA is useful context, but the note on debt porting suggests shareholders should anchor on a range rather than a single point. The immediate catalysts are clear: converting those exclusivity agreements into completed sales on credible terms and clarity on the timetable for returning cash.

Bottom line: execution and pricing on the two remaining disposals will drive outcomes. With operations in good shape and a thorough sales process run, the ingredients for an orderly realisation are in place. The remaining variables are deal terms, debt mechanics and the prevailing yield backdrop at completion.