Residential Secure Income PLC on Thursday said net asset value per share declined in its just-completed financial year, but like-for-like rental growth rose and the company declared an increased dividend to shareholders.

The Bristol-based real estate investment fund focused on independent retirement living and shared ownership said NAV per share on September 30 was 106.10 pence, down 1.7% from 107.90p a year earlier. Shares in Residential Secure were up 2.1% to 88.20p in London on Thursday morning.

However, like-for-like rental growth for the financial year that ended September 30 was 4.5%, up from 1.5% during its financial 2021, while rental operating profit was up 36% to £8.4 million from £6.2 million.

It also declared a financial 2022 dividend of 5.16p, up 3.2% from 5.00p.

‘The current high inflationary environment is raising the cost of living for citizens across the country and at the same time the UK is entering into a recession. Now, more than ever, Residential Secure’s investment thesis is supported by a growing need for affordable housing in the UK, across the age spectrum. The country’s structural housing shortfall continues and most of the population lives in areas where home purchase is unaffordable,’ said Chair Robert Whiteman.

Residential Secure said its outlook for its financial 2023 is positive, remaining confident it is well positioned to help address unmet demand for affordable housing.

It predicted 97% inflation-linked rents to provide a strong basis for future growth, as well as accelerated tenanted shared ownership opportunities as housing associations look to fund increasing investment costs in their existing stock while maintaining development programmes.

It also expects financial 2023 headwinds from increasing interest rates on 10% of floating debt and energy costs in its retirement communal areas.

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