Residential Secure Income plc (LSE:RESI) has taken another major step in its managed wind-down following the completion of the Retirement Disposal of its retirement housing portfolio. Through its subsidiary, ReSI Portfolio Holdings Limited, the company received consideration comprising £62.3 million in newly issued Living REIT plc shares and £45 million in cash. The 66,103,233 new Living REIT ordinary shares were admitted to trading on the London Stock Exchange’s Main Market on 16 July 2026.
The Living REIT shares will be distributed directly to eligible RESI shareholders through an in specie distribution. Shareholders on the register as of 22 July 2026 will receive approximately 0.3570 Living REIT shares for every RESI share held, with fractional entitlements rounded down. The cash proceeds are expected to be returned during the third quarter of 2026 through a bonus issue and redemption of B shares, subject to the company retaining sufficient funds to meet transaction costs, working capital requirements, tax obligations and expenses associated with its planned exit from the UK REIT regime.
The combination of share and cash distributions represents a key milestone in the company’s orderly wind-down strategy. Shareholders will receive immediate value through the planned capital return while retaining exposure to the retirement housing sector via their direct ownership of Living REIT shares.
The company’s financial outlook remains mixed. While leverage has been significantly reduced and recurring cash generation remains relatively strong, declining revenue, ongoing net losses and falling property valuations continue to present challenges. Technical indicators also remain weak, although the company’s dividend yield continues to provide some valuation support during the wind-down process.
More about Residential Secure Income
Residential Secure Income plc is a UK-listed real estate investment trust specialising in residential property, including retirement housing assets held through its subsidiary, ReSI Portfolio Holdings Limited. The company is implementing a managed wind-down strategy that includes asset disposals, capital returns and an orderly withdrawal from the UK REIT regime.
Living REIT plc, which forms part of the consideration for the Retirement Disposal, is listed in the closed-ended funds segment of the Official List and trades on the London Stock Exchange’s Main Market. The transaction allows RESI shareholders to maintain an investment in the retirement living sector while the company continues returning capital.
RESI has stated that future cash distributions under its planned B Share Scheme will depend on retaining adequate funds to cover outstanding liabilities, transaction expenses, working capital needs, property income distribution requirements and the costs of completing its exit from the UK REIT regime.
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