Residential Secure Income PLC Issue of Ordinary Shares (3583M)

TIDMRESI

RNS Number : 3583M

Residential Secure Income PLC

28 July 2017

28 July 2017

RESIDENTIAL SECURE INCOME PLC

(the "Company")

Issue of Ordinary Shares under the Fund Management Agreement and Total Voting Rights

The Company announces that, in accordance with the terms of the Fund Management Agreement with ReSI Capital Management Limited (the "Fund Manager") pursuant to which 25 per cent. of the fund management fee is payable in new ordinary shares of GBP0.01 each in the capital of the Company ("Ordinary Shares"), it has today issued, in aggregate, 213,287 Ordinary Shares (the "Fund Management Ordinary Shares") to the Fund Manager, subject only to Admission (defined below).

The issue price per Fund Management Ordinary Share is GBP0.98 (being the prevailing Net Asset Value per share).

An application has been made for the Fund Management Ordinary Shares to be admitted to the premium segment of the Official List and to trading on the main market of the London Stock Exchange. It is expected that dealings in the Fund Management Ordinary Shares will commence at 8.00 a.m. on 31 July 2017 ("Admission").

The Fund Management Ordinary Shares allotted and issued are subject to a minimum lock-in period of 12 months from 12 July 2017, being when the Fund Management Ordinary Shares became due and deliverable.

Total Voting Rights

Immediately following Admission, the Company's issued share capital will consist of 180,213,287 Ordinary Shares with voting rights. This figure may be used by Shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

FOR FURTHER INFORMATION, PLEASE CONTACT:

 
 ReSI Capital Management Limited 
  Jonathan Slater, Chief Executive 
  Ken Youngman, Chief Financial 
  Officer 
  Ben Fry, Investment Manager         [phone] 
  Alex Pilato, Director                0900 
 
 Jefferies International Limited 
  Stuart Klein                        [phone] 
  Gary Gould                           8000 
 
 Newgate Communications               [phone] 
  James Benjamin                       6550 
  Clotilde Gros                        Email: [e-mail] 
  Lydia Thompson 
 

NOTES:

The Company intends to invest in portfolios of Homes across residential asset classes that comprise the stock of Housing Associations and Local Authorities, comprising Shared Ownership Homes, Market Rental Homes, Functional Homes and Sub-Market Rental Homes throughout the UK.

Homes acquired by the Company will predominantly be on a freehold or long leasehold basis (typically 99 years or more to maturity) and benefit from long term (typically 20 years plus) inflation-adjusted cash flows. Acquisitions by the Company will be limited to Homes with sufficient cashflows, counterparty credit quality and property security that allow the Fund Manager to arrange long-term investment grade equivalent debt.

The Company is targeting, on a fully invested and geared basis, a dividend yield of 5 per cent. per annum based on the issue price of 100 pence per Ordinary Share, which the Company expects to increase broadly in line with inflation, and a total return in excess of 8 per cent. per annum(1) .

The Company expects to make a meaningful contribution to the UK housing shortage by allowing Housing Associations and Local Authorities to recycle capital into socially and economically beneficial new housing.

Further information on Residential Secure Income plc is available at www.resi-reit.com

1. This is a target only and not a profit forecast and there can be no assurance that it will be met.

This information is provided by RNS

The company news service from the London Stock Exchange

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July 28, 2017 02:00 ET (06:00 GMT)