ReSI reports rise in interim profit as portfolio grows

Listed affordable housing firm ReSI plc has reported a pre-tax profit of £7.8m for the six months to the end of March, up 79% on the same period last year, as it expands its  portfolio of homes.

The firm, which owns and runs “for profit” housing association Resi Housing, said it had increased its net rental income in the period by 25% to £7.6m as it grew its portfolio of properties to reach 3,233 homes with a “fair value” estimated at £375m.

ReSI plc’s strategy involves investing in both affordable homes ownership properties from section 106 development deals and housing for the later living market. The firm said it had a £300m long-term funding arrangement of which only £80m had been drawn down, meaning it was well-placed to continue to invest in more stock.

The firm said it was benefitting from the “acute” need for further expansion of the UK’s affordable housing stock, worsened by recent strong house price growth, “which ReSI plc is strongly placed to meet”.

The firm said its shared ownership portfolio was fully occupied and its later living properties were 94% occupied – in line with pre-covid numbers – with rent collection at 99%.

Robert Whiteman, chairman of ReSI plc, said the firm was also looking to invest to bring the properties it had bought up to a minimum energy performance certificate rating of C by 2025 in order to keep residents’ bills down as energy costs rise.

He said: “The UK’s structural housing shortfall continues and with most of the population living in areas where home purchase is unaffordable, the fundamental need has never been stronger, for new long-term investment into this sector.

Last year Gresham House, the fund manager which set up ReSI plc, said it wanted to double its investment in housing to £1.4bn, with a rapid expansion into the affordable housing and build to rent sectors.