Residential Sec Regulatory News (RESI)

9 April 2018

Residential Secure Income plc (the "Company")

Share Buyback Programme

Residential Secure Income plc, which invests in residential asset classes that comprise the stock of UK social housing providers, announces that it will commence a share buyback programme (the "Programme") in light of the recent weakness in the Company's share price. In this regard, the Company has engaged Jefferies Hoare Govett, a division of Jefferies International Limited ("Jefferies"), to execute share buybacks on its behalf.

Robert Whiteman, acting Non-Executive Chairman, said:

"Our portfolio currently comprises the Retirement Homes portfolio, acquired in November 2017 for a total consideration of c. £100 million, which is a high quality investment that is performing in line with expectations, and cash proceeds. We also have a strong pipeline of investments that we expect to be executable in the short term. We remain highly disciplined in our approach to ensuring we make the right investments with high quality counterparties and believe that this is fundamental to delivering a long term secure income return for shareholders. We remain fully confident in our overall investment strategy and our target dividend and return expectations are unchanged from those set out at the time of our IPO. However, we believe our own shares also represent an attractive investment opportunity at prevailing market prices and we are therefore introducing a share buyback programme which can be undertaken without compromising our ability to execute on our investment pipeline."

Share purchases will only be made through the market at prices below the prevailing Net Asset Value per Share under the guidelines established by the Company and in accordance with the authority conferred by the Company's Shareholders at the Annual General Meeting on 13 December 2017.

The maximum price per Share for any Share purchase may not exceed the higher of (i) 105% of the average of the official closing middle market quotations for the five business days before the day on which the purchase is made (as derived from the Daily Official List of the London Stock Exchange plc (the "LSE")); and (ii) that stipulated by Article 3(2) of Commission Delegated Regulation (EU) 2016/1052 ("Buy-back and Stabilisation Regulation").

A buy-back of Shares pursuant to the Programme on any trading day may represent a significant proportion of the daily trading volume in the Shares on the Main Market of the LSE (and could exceed the 25% limit of the average daily trading volume of the preceding 20 business days as referred to in the Commission Delegated Regulation (EU) No. 2016/1052 on buy-back programmes).

Shares repurchased by the Company may be cancelled or held in treasury. The Company does not currently intend to sell shares from treasury other than at or above the prevailing Net Asset Value per Share.

FOR FURTHER INFORMATION, PLEASE CONTACT: 

FTI Consulting +44 (0) 20 3737 1000

Richard Sunderland Email: resi@fticonsulting.com

Claire Turvey

Richard Gotla

NOTES:

Residential Secure Income plc (LSE: RESI) is listed on the premium segment of the Official List of the UK Listing Authority and was admitted to trading on the Main Market of the London Stock Exchange in July 2017.

ReSI has been established to invest in portfolios of Homes across residential asset classes that comprise the stock of Housing Associations and Local Authorities, comprising Shared Ownership Homes and Rental Homes (being Market Rental Homes, Functional Homes and Sub-Market Rental Homes) throughout the UK.

ReSI is managed by ReSI Capital Management Limited, a wholly owned subsidiary of TradeRisks Limited which has a 17 year track record of executing transactions within the UK social housing sector and, to date, has arranged funding of over £10 billion in the social housing, care and other specialist residential property sectors.

ReSI seeks to deliver secure, long-dated, inflation-linked income returns through investment in UK social housing. It aims to meet demand from Housing Associations and Local Authorities for alternative equity-like financing sources that allows them to recycle capital back into socially and economically beneficial new housing, making a meaningful contribution to the UK housing shortage.

Homes acquired by ReSI 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 ReSI 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.

Further information on ReSI is available at www.resi-reit.com