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This Reit's wind-down has a silver lining for investors

These shares trade on a 31 per cent discount to NAV and offer a 7.1 per cent dividend yield
This Reit's wind-down has a silver lining for investorsPublished on October 7, 2024
  • Proposed wind-down and portfolio realisation
  • 31 per cent discount to IFRS NAV of £155mn         
  • 50 per cent pro-forma loan-to-value ratio
  • £81mn (44p) reversionary surplus not embedded in NAV
  • 7.1 per cent dividend yield

The board of Residential Secure Income (RESI:57.7p), a real estate investment trust with secure inflation-linked returns, has proposed a managed wind-down of the company to return capital to shareholders.

The directors highlighted the liquidity of the shares, increasing investor demand for larger listed funds and a persistent, material share price discount to net asset value (NAV) as reasons for pursuing a portfolio realisation to maximise shareholder value.

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