ReSI’s shareholders vote through proposals for managed wind-down

ReSI’s shareholders have now voted through the proposals for a managed wind-down and portfolio realisation strategy at an annual general meeting (AGM) held on 6 December.

In a notice in November informing the markets about this AGM, ReSI said: “Under the proposed managed realisation and wind-down process, the company will be managed with the intention of realising all the existing assets in its portfolio in an orderly manner and with a view to repaying borrowings and making timely returns of capital to shareholders.”

In October, ReSI said that with a market capitalisation of approximately £101m, the REIT remains of a size that may deter some potential investors because of lower share liquidity and the increasing demand from investors for larger listed funds.

At the time, it said the REIT’s shares had traded at a “persistent, material discount” to its net asset value (NAV) since September 2022.

In the same announcement, it said its board and the trust’s fund manager, Gresham House Asset Management, had engaged with ReSI’s shareholders and advisors to consider “the optimal route forward to realise shareholder value”.

ReSI said at the time: “Accordingly, the board has concluded that a proactive approach, executing a managed wind-down and portfolio realisation strategy, which prioritises maximisation of proceeds from portfolio sales whilst ensuring the interests of residents are protected, and a subsequent return of capital to shareholders is the appropriate course of action and in the best interests of the company’s shareholders.”

On the sale of ReSI Housing, Ben Fry, managing director of housing at Gresham House, said in October that ReSI’s board believes another long-term owner of the portfolio will be “better placed to grow and invest in ReSI Housing”.

As of 30 June, the for-profit owned 757 shared ownership homes.

“The board of ReSI is very explicit that they will take their time on the sales process and consider the needs of all stakeholders, always ensuring that the interest of residents are protected,” Mr Fry said at the time.

Since launching in 2017, ReSI has built a residential portfolio across the independent retirement rental, shared ownership and local authority accommodation sub-sectors.

On 30 June 2024, its portfolio comprised 3,125 homes, including 2,234 independent retirement rental homes, 757 shared ownership homes and 134 homes providing local authority accommodation.

Gresham House also manages a second registered provider, ReSI Homes, which is not affected by the wind-down and portfolio realisation strategy.

The for-profit was registered in March 2020, and is backed by a separate fund, Gresham House Residential Secure Income LP.

Separately to ReSI’s wind-down, Gresham House partnered with Places for People Group’s fund manager Thriving Investments in November to create a shared ownership fund management platform.