Residential Secure Income PLC on Thursday said it is considering a wind down, citing a low market capitalisation.

The retirement rental and shared ownership-focused real estate investment trust proposed a managed wind-down and portfolio realisation strategy, with capital to be returned to shareholders.

It noted a market capitalisation of around £101 million which means the company is of a size which ‘may deter some potential investors due to lower share liquidity’.

Chair Rob Whiteman said: ‘The headwinds for smaller listed real estate businesses have been well flagged, and there are no quick fixes. The board and fund manager are focused on maximising returns to all shareholders.’

Shareholders will vote on the proposal at an upcoming general meeting.

Residential Secure shares rose 7.2% to 58.30 pence each on Thursday afternoon in London.

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