Living REIT released its interim results for the six months ended June 30, 2026, showing modest but steady growth. Net rental income rose 2.3% to £20.2 million and adjusted EPRA earnings increased 2.2% to £13.5 million, delivering earnings per share of 3.4 pence. The share price slipped to $73.27, down 2.57% from the prior close, within a 52‑week range of $64.80 to $80.80.
The REIT raised its full‑year 2026 dividend target by 3% for the second year in a row, keeping dividend cover at 1.20 times. Rent collection improved to 92.7% from 91.5% a year earlier. EPRA net tangible assets (NTA) per share edged up to 95.4 pence, with a pro‑forma NTA of 93.92 pence at period end, reflecting EPRA earnings, a modest property revaluation loss and two quarterly dividends. Administrative and other expenses fell slightly to £1.7 million, while management fees rose to £1.8 million. Finance costs held steady at £3.8 million, pushing the EPRA cost ratio to 17.1% from 16.5%.
The results were driven by the acquisition of the UK’s largest independent senior‑living rental portfolio – 2,163 homes valued at £185 million. Funding comprised £63 million of new equity (66 million shares issued at EPRA NTA), £45 million of cash from existing resources plus a new £30 million debt facility, and the assumption of £92 million of acquired debt at a 17‑year fixed rate of 3.46%. Post‑transaction, the group now manages 5,464 lettable homes with a gross asset value of £825 million and combined annualised net rental income of £52 million.
The acquisition altered the capital structure. Weighted‑average cost of debt fell to 3.16% versus the UK REIT industry average of 3.82%. The average term to maturity extended to 8.9 years, well above the sector average of 4.8 years, up from 6.7 years pre‑transaction. Fixed‑rate debt rose to 92% of the portfolio, and the fair‑value debt adjustment increased to £85.0 million. Net loan‑to‑value climbed to roughly 45%, above the medium‑term target of 40%. After the reporting period, the REIT sold 18 properties and plans further disposals.
Operational metrics showed incremental improvement. Resident occupancy reached 88% from 87% a year earlier, and 78% of properties achieved an EPC rating of C or better, up from 77%. Net initial yield improved to 6.54% from 6.42%. Management inspected 91% of the portfolio and met with 89% of approved providers over the prior 12 months. The Regulator of Social Housing upgraded Inclusion Housing to a G2V2 compliant rating, reflecting stronger provider performance.
Chief Executive Michael Carey highlighted the focus on geography, provider financial strength and risk‑sharing lease clauses when selecting tenants. He identified a market opportunity in the mid‑segment of care homes, where operations are solid but covenants are weaker than prime institutional assets. CFO Nat Markham noted that the REIT’s cash‑flow modelling assumes compliance with REIT distribution rules and allows a 12‑month catch‑up window if needed.
