The Group operates in the residential private rented sector (PRS), with an emphasis on London and the South East. The residential sector has several sub-categories, including PRS, which was K&C's original focus, retirement residential, residential care and social housing. K&C's operations in the market broadened following the acquisition of K&C (Osprey) to include the retirement residential sub-category in London and the southeast of the UK.

We believe that K&C offers an attractive opportunity for shareholders to gain exposure to the residential property market. We believe that London will remain a resilient market for residential property for several reasons. These include the UK's economic and political stability, London's continuing position post-Brexit as one of the world's leading financial and cultural centres, constraints on supply, increasing institutional and overseas interest in the sector, and rising demand for rental properties.

Following a review of all the sub-categories in the residential sector, K&C remains positive on PRS and retirement residential, and continues to explore other appropriate income-producing opportunities. Given the growing demand for residential care property and the income yields available to investors, K&C will also consider opportunities to acquire buildings leased to operators in this segment.

We have a track record of successfully sourcing, financing, improving, letting and managing properties to create sizeable property portfolios with attractive cash-flows. We aim to take advantage of opportunities in PRS to build our portfolio, enhancing yield and increasing net asset value through active management and development. We believe that this strategy will allow us to provide shareholders with an attractive level of dividend income.