Residential Secure Income Reports Interim Results and Progress on Portfolio Wind-Down

Residential Secure Income’s latest interim results are less about growth and more about execution. This is a REIT – a real estate investment trust – that is now in managed wind-down mode, so the big question is not whether it can build the portfolio further, but whether it can sell assets sensibly and return cash and shares to investors without nasty surprises.

On that front, this update is broadly encouraging. The underlying rental business stayed solid, valuation falls eased sharply, and management says deals are now lined up for both the Retirement and Shared Ownership portfolios. That said, there is still deal risk, no interim dividend, and shareholders now need completions rather than promises.

Residential Secure Income interim results: steady rent, softer valuation falls, and a clearer wind-down path

For the six months to 31 March 2026, ReSI reported gross rental income of £14.9 million, down slightly from £15.0 million a year earlier. Net rental income was flat at £9.4 million, while adjusted earnings came in at £5.2 million versus £5.1 million last year.

That may not sound exciting, but in a wind-down story it matters. It shows the assets kept producing cash while the company worked through disposals, which gives management more room to exit in an orderly way rather than under pressure.

Key metric	31 March 2026	31 March 2025 or 30 Sept 2025
Gross rental income	£14.9 million	£15.0 million
Net rental income	£9.4 million	£9.4 million
Adjusted earnings	£5.2 million	£5.1 million
Adjusted EPS	2.8p	2.8p
Dividend paid per share	2.06p	2.06p
Dividend cover	136%	134%
IFRS NAV per share	71.0p	72.5p
EPRA NTA per share	61.2p	63.3p
Portfolio valuation	£282.2 million	£287.4 million
Loan to value	51%	51%

Rental performance at ReSI stayed resilient across both property portfolios

The operational numbers are probably the strongest part of this update. ReSI owned 2,922 homes valued at £282.2 million at the period end, and occupancy remained high across both portfolios.

• Retirement Portfolio: 2,198 homes, 96.8% average occupancy, 99.8% rent collection, and like-for-like rent growth of 4.3%.
• Shared Ownership Portfolio: 724 income-generating homes, 100% occupied, 100% rent collection, and like-for-like rent growth of 4.9%.

That is the sort of performance income investors want to see. Rent collection at or near 100% and mid-single-digit rental growth suggest the underlying assets were not the problem here. The issue has been the wider strategy shift to realise the portfolio, not weak tenant demand.

The company also said income is supported by long-dated, inflation-aligned cash flows, with a blended net initial yield of 5.9%. In plain English, yield is the income return on the properties, and these assets are still generating meaningful cash while they are being sold.

Property valuation decline slowed, but NAV still moved lower

The less cheerful bit is that property values still fell. ReSI booked a £4.2 million fair value loss on investment properties in the half year, although that was much better than the £15.5 million decline in the comparable period.

So, yes, the direction is still negative, but the pace of the damage has clearly improved. That fits with management’s line that the valuation decline slowed to 1.3%.

Even so, net assets continued to edge down. IFRS net assets fell to £131.5 million from £134.2 million, while IFRS NAV per share slipped to 71.0p from 72.5p. EPRA NTA per share – a property sector measure of tangible net assets – dropped to 61.2p from 63.3p.

That matters because wind-down investors care a lot about what the assets are really worth versus what they may eventually get back. Slower valuation declines are helpful, but they do not fully remove execution risk.

Retirement Portfolio sale and Shared Ownership exclusivity are the real market-moving news

The headline event since the period end is the agreement to sell the Retirement Portfolio to Social Housing REIT plc, known as SOHO. The aggregate consideration is approximately £108.3 million, made up of £45.0 million in cash and around £63.3 million in new SOHO shares, based on SOHO’s 31 December 2025 EPRA NTA of 94.23 pence.

This is important for two reasons. First, it turns a large chunk of ReSI’s portfolio into realisable value. Second, because much of the consideration is in shares rather than cash, investors are not getting a neat all-cash exit on this part of the deal.

For the Shared Ownership Portfolio, ReSI said it has moved into extended exclusivity and agreed heads of terms for net consideration of approximately £13.5 million, subject to completion accounts adjustment. Around £5 million of that is due to be released after completion based on asset-management deliverables, with completion targeted for late July 2026.

That sounds promising, but it is not done yet. Heads of terms and exclusivity are steps forward, not the finish line.

What ReSI shareholders may receive next: SOHO shares, B shares, and no more ordinary dividends

This is where the update gets very practical for investors. ReSI has declared no interim dividend for this period, and it says no further ordinary dividends are intended.

Instead, the company is planning to return value through other methods. An in-specie distribution – meaning shareholders receive assets rather than cash – of the SOHO consideration shares is anticipated in late July 2026.

There is also a B Share Scheme, with an initial return targeted in Q3 2026 and a further return in Q4 2026 linked to the deferred Shared Ownership Portfolio consideration, net of costs, liabilities and REIT-exit retentions. That is a more complex capital return structure than a normal dividend, so investors will need to watch the timetable and paperwork closely.

A General Meeting is set for 8 July 2026 to approve the new investment policy, new articles and the B Share Scheme. The Retirement disposal is expected to complete in July 2026, subject to conditions including SOHO shareholder approval.

What looks positive in these Residential Secure Income interim results

• Operational performance stayed robust, with rent collection of 100% overall in effect and strong occupancy.
• Like-for-like rental growth of 4.4% shows the assets still have pricing power.
• Adjusted earnings held up at £5.2 million and dividend cover improved to 136%.
• Valuation declines were much smaller than last year.
• The wind-down strategy now appears close to substantial completion, at least on paper.

What still looks risky or less attractive for investors

• No interim dividend has been declared, and no further ordinary dividends are intended.
• The Retirement deal is conditional and partly paid in SOHO shares rather than cash.
• The Shared Ownership deal is not yet completed and includes deferred consideration.
• Loan to value remains 51%, so leverage is still in the picture until disposals settle.
• NAV and EPRA NTA both continued to fall, even if less sharply.

My take on what this ReSI RNS means for retail investors

This is a decent update for a company that is effectively dismantling itself in an orderly way. The rental engine kept running, and management has moved from talking about strategy to putting real transactions on the table.

But investors should not mistake that for a clean, risk-free endgame. The returns now depend on deal completion, the final completion-account adjustments, the mechanics of the SOHO share distribution, and how much cash ultimately comes back after liabilities and retained amounts.

If you already own ReSI, this RNS suggests the plan is progressing and the operational backdrop has not fallen apart. If you are looking at it fresh, this is no longer a straightforward income REIT story. It is a special situation driven by disposals, capital return mechanics, and the final gap between stated asset values and what shareholders actually receive.

In short, the good news is that ReSI looks closer to the cashing-out phase. The catch is that the last stretch still needs to be executed properly.