You are viewing 1 of your 1 free articles
For-profit provider reports £15m loss despite rising revenue
For-profit provider ReSI Homes has posted an annual pre-tax loss of £15.7m despite an increase in revenue.
The shared ownership specialist, which is owned by asset manager Gresham House, had made a £5.2m profit the year before.
ReSI Homes increased its revenue in the year to the end of March 2024 to £13.6m, up 37% from £9.9m in 2022-23. However, it took a £19.9m loss from revaluation of investment properties, compared to the previous year when it posted a £2.7m gain.
The for-profit, which launched in 2021, had 962 occupied homes at the end of March 2024, up from 785 the previous year.
READ MORE
During its last full-year, the firm funded 93 new shared ownership homes. ReSI Homes said that the number of homes funded in the year fell from last year as it had “materially committed” its available capital before closing its next funding round in May this year.
ReSI invested £58m into the development of 652 homes in the year, of which 578 are under construction or leasing up and 74 were completed and occupied. As of 31 March, its net assets were £166m.
Net cash flow used in investing activities dropped by 72% year on year to £27.1m, the firm reported.
David Orr, chair of ReSI Homes, said the year had seen “severe challenges to our development partners” with modular house builder Ilke Homes entering administration in June last year.
ReSI was working with Ilke Homes on a scheme in Stanford-le-Hope when the house builder collapsed, but a new builder, Chartway Partnerships, has been engaged to deliver the remainder of the site.
Mr Orr, who is also the current chair of Clarion Housing Association, said he continued to expect demand for shared ownership to remain high, driven by “elevated mortgage rates and an ongoing shortfall in the supply of affordable housing”.
ReSI arranged its first debt facility in December 2023 with Mitsubishi UFJ Financial Group and received £125m of equity investment from two local government pension funds in May 2024.
In June, ReSI became a ‘large’ registered provider by owning over 1,000 completed homes, triggering additional regulatory obligations.
It also completed a 111-home acquisition from house builder Persimmon the same month.
Earlier this month, Gresham House partnered with Thriving Investments, a subsidiary of large housing association Places for People, to create an expanded shared ownership fund.
Last month, Gresham House said it would sell ReSI Homes’ sister for-profit, ReSI Housing, as it wound down its parent company ReSI plc. It is understood that ReSI Homes is not affected by the wind-down of ReSI plc.
Sign up for our development and finance newsletter
Already have an account? Click here to manage your newsletters
