Managers expect strong performance from Claverhouse’s British stocks
Credit: Jim Dyson /Getty Images
Reserves that could be used to support the trust’s dividend during the pandemic were behind our decision a year ago to add JP Morgan Claverhouse to our Income Portfolio at the expense of Invesco Income Growth. Its annual report, published last month, gave us an update on the state of those reserves.
The trust said that, following payment of the fourth quarterly dividend, its reserves would amount to £15.8m or 27.1p per share. This compared with £19.6m or 34.4p a share in 2019.
The total dividend for 2020 was 29.5p, up from 29p, as we have reported previously. So the current reserves would be enough to pay 92pc of the next annual dividend if it was left unchanged.
NOTES: Residential Secure Income plc (LSE: RESI) is a real estate investment trust (REIT) listed on the premium segment of the Main Market of the London Stock Exchange with the objective of delivering secure inflation linked returns by investing in affordable shared ownership, retirement and Local Authority housing throughout the UK. ReSI targets a secure, long-dated, inflation-linked dividend of 5.0 pence per share p.a. (paid quarterly) and a total return in excess of 8.0% per annum. Including recent committed acquisitions, ReSI s portfolio 3,060 properties, with an (unaudited) IFRS fair value of £345m. ReSI aims to make a meaningful contribution to alleviating the UK housing shortage by meeting demand from housing developers (Housing Associations, Local Authorities and private developers) for long-term investment partners to accelerate the development of socially and economically beneficial new affordable housing.
Residential Secure Acquires 85 New Build Homes For GBP29 Million
Thu, 24th Dec 2020 13:35
(Alliance News) - Residential Secure Income PLC on Thursday said it has acquired 85 new build homes for GBP29 million from Brick By Brick, a development company set up by Croydon Council.
The real estate investment trust stated the portfolio of newly-completed homes which will be delivered as shared ownership properties comprises one, two and three-bedroom apartments in new developments in Upper Norwood, Thornton Heath and South Croydon in south London.
The transaction will be funded through the GBP300 million 45-year debt facility inked in July.
Residential Secure highlighted the deal brings its total shared ownership portfolio to 281 homes, adding that upon occupation, each home will be fully income generating, with an expected inflation-linked leveraged yield which supports the company s total return of 8% and dividend targets of around 5%.