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A Reit wind-down worth buying into

Simon Thompson: Shares are priced 32 per cent below NAV even though shareholders have sanctioned an orderly realisation of its assets
A Reit wind-down worth buying intoPublished on January 22, 2025
  • Shareholders approve orderly wind-down of portfolio
  • 5.8 per cent like-for-like rental growth
  • 9 per cent higher adjusted EPRA earnings of £9.5mn (5.1p)
  • 124 per cent dividend coverage
  • 32 per cent discount to NAV and 7.3 per cent dividend yield

Residential Secure Income (RESI:56p), a real estate investment trust with secure inflation-linked returns, faces the same challenges as many other small investment funds.

Namely, a modest market capitalisation and persistent discount to net asset value (NAV) has undermined its ability to raise more capital and reach a sufficient scale to efficiently manage the portfolio in the medium term and provide sufficient liquidity to investors. So, despite delivering a strong operational performance in the 2024 financial year, shareholders have now sanctioned an orderly realisation of RESI’s assets (‘This Reit's wind-down has a silver lining for investors’, 1 October 2024).

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