Share Name Share Symbol Market Type Share ISIN Share Description
Residential Sec LSE:RESI London Ordinary Share GB00BYSX1508 ORD GBP0.01
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.20p -0.21% 94.60p 94.60p 95.00p 95.40p 94.60p 95.00p 394,759 16:29:53
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment Trusts - - - - 170.59

Residential Sec Share Discussion Threads

Showing 51 to 75 of 75 messages
Chat Pages: 3  2  1
Liberum; £40m portfolio acquisition Event Residential Secure Income REIT has agreed to acquire a 478-bed retirement homes portfolio from Places for People for £40m. The yield is in line with previous retirement home acquisitions. Heads of terms for long-dated debt have also been agreed. The portfolio mainly comprises one-bedroom flats located across 284 retirement schemes (93% in Southern England). The properties are held on a long leasehold basis (weighted average unexpired lease term of 92 years). The portfolio will continue to be managed Places for People group. Liberum view The company has made significant progress in deploying capital in 2018, with £215m of capital now invested (80% in retirement assets). The LTV level will be c.20% following the acquisition. The long-term gearing target is 50%. The shares currently trade on a -6.0% discount to NAV (average 5.3% premium for peers). We see scope for the discount to narrow in the near-term.
Liberum; New £53m debt facility Event Residential Secure Income REIT has agreed a new £53m debt facility secured on the company's £100m acquisition of 250 retirement housing blocks (1,365 units), concentrated in Southern England. The facility is partially amortising and repayable in 2043 (fixed rate of 3.45%). The proceeds received from the debt facility will be used to fund two acquisitions totaling £54m. The company has agreed heads of terms for the acquisitions and are expected to close in July and August. Liberum view The company has made significant progress in recent months with the deployment of capital. Assuming the potential new acquisitions are completed, the equity proceeds will be fully invested and the LTV level will be c.20%. The long-term gearing target is 50%. Assuming the company can deploy the rest of its capital (debt and equity) in 2018, we would expect the current discount of -4.7% to narrow (4.6% average premium for peers).
Liberum; Residential Secure Income (Mkt Cap £166m) £21m acquisition Event Residential Secure Income REIT has exchanged contracts to acquire a £21m residential building in Luton, which is leased to a local authority to provide housing under its statutory obligation. Completion is expected on 29 June. The asset comprises 134 flats and is located in the centre of Luton. The lease has 7.3 years remaining on the lease term and the manager will seek to extend this in due course. The lease provides CPI-linked upwards-only rent and the local authority is responsible for repairs and the letting risk. The net initial yield has not been disclosed but the company expects to leverage the acquisition with investment grade debt to generate equity returns in line with target. Liberum view This is the company's third acquisition, bringing total deployed proceeds to £155m (c.9% of NAV is in cash). Almost £1.1 billion of equity has been raised by the three social housing funds and this is the first acquisition of a core social/affordable asset. Recent acquisitions have helped to allay fears over the company's lack of investment. The recent buyback has also helped to stabilise the share price. Assuming the company can deploy the rest of its capital (debt and equity) in 2018, we would expect the gap to the peer group to narrow.
Acquisition announced today
Picked up some on the hope it rockets back up to the IPO price when fully invested.
Posts 12 and 19 refer
Probably just bought their own houses with it. Bloody good idea if so, and wish I'd thought of it myself.
Even with buybacks the price is going down again.
Have decided to sell out of this now, when really annoyed me aside from the slow progress was that the buyback was announced a day or 2 after the manager had taken its first slice of fees in shares, those shares bought on the lows ahead of buyback announcement smacks of manager putting their own interests first above everyone else.
Bought a small amount of these initially, but luckily very, very small. Was vaguely considering topping up whilst share price was low but reading this, maybe not. Just leave be, concentrate on better things and wait for a surprise one way or another. Bugs me when companies take your hard earned money and tell you diddly squit once they've got it. Just ordinary, plain bad manners.
As I mentioned before, any fund like this which is run by committee is normally destined for absolute mediocrity at best in my opinion. Performance to date speaks volumes. One transaction completed and now moneys being used to buy back rather than find more investments. In my opinion, this is a hopeless fund. Just a rich fee trough for everyone to dip into liberally and feed on handsomely in my view. ALL IMO. DYOR. QP
Liberum; Commencement of share buyback programme Event Residential Secure Income REIT has announced it will commence a share buyback programme following recent share price weakness. Residential Secure Income now trades on a -9.7% discount to NAV, which is the widest discount of the social housing fund peer group (Civitas -3.5% discount, Triple Point 1.2% premium). Deployment has been relatively slow with one large portfolio transaction completed to date. The £100m retirement portfolio is operated by one of the larger housing associations (Places for People). The sector has suffered a sell-off this year which has been amplified by concerns over the covenant strength in the supported living sector following issues experienced by First Priority Housing Association. First Priority was placed under review in January and the Regulator of Social Housing subsequently reported that it does not have sufficient working capital to meet its debts. First Priority leases from 26 different companies including 45 properties from Civitas Social Housing (c.11% of Civitas' portfolio). Trade press reports indicate the regulator has not asked First Priority's creditors to reduce rent levels owed by the association.
Buyback announced.
The silence is deafening as they say. Still sinking like a brick.
This is in freefall at the moment. Need them to update us on what, if anything, is going on.
Just to bring the thread in to 2018 - Dividend Declaration ex dividend yesterday. Jefferies International Buy 98.80 - 116.00 Reiterates
No mention of the initial yield on these.
Liberum; Specialist Real Estate Residential Secure Income (Mkt Cap £178m) and Triple Point Social Housing (Mkt Cap £207m) Acquisitions Event Residential Secure Income has announced its first acquisition since IPO in July. The fund has acquired a portfolio of 1,341 rental retirement properties for a total consideration of c.£100m. The portfolio consists of long leasehold or freehold interests in 250 retirement housing blocks (one and two bedroom assisted living flats), concentrated in Southern England, which will be operated by Places for People. The portfolio is subject to RPI linked leases which provide residents with lifetime security of tenure. The fund also aims to secure debt over the portfolio, which will enhance returns. The manager has advised that a £250m transaction for the acquisition of shared ownership properties is likely to be completed in early 2018; this transaction would complete the deployment of the IPO proceeds, plus leverage. The shares currently trade at a 1.0% premium to NAV at IPO (98p). Triple Point Social Housing has announced the acquisition of three supported living properties for a £7.1m (excluding costs). The properties comprise 52 units, located in Leicester, Manchester and Wolverhampton. The company has entered into new FRI leases (two for 20 years, with the ability to extend to 25 years, and one of 25 years) with the relevant Housing Associations in respect of the properties; rents are subject to annual, upward only rents reviews in line with CPI. The shares currently trade at a 5.4% premium to NAV at IPO (98p).
Now 4 months since listing and still nothing concrete has happened. No wonder these shares are drifting downwards.
Jefferies; Target price 115p * In the process of finalising terms with three Housing Associations for the acquisition of three separate shared ownership portfolios in southern England for a total consideration of £250m. It is expected these transactions will be contracted by the end of 2017, or shortly thereafter. * Entered exclusive due diligence in respect of the acquisition of, in aggregate, approximately £100 million of rental homes managed by a Housing Association and principally located in southern England. This transaction is expected to contract during November 2017 and RESI has received long term investment grade equivalent debt funding offers for this acquisition. * Progressing an additional pipeline of shared ownership and rental homes with three other Housing Associations with an aggregate purchase consideration of over £200m. * “RESI therefore expects that the net proceeds of the IPO, plus leverage, will be fully deployed well within the nine month period referred to in RESI’s IPO prospectus.”
Just in case you'd forgotten, we're very busy: Https:// If I've read it right, that adds up to £550m and they've only £180m of equity. Hell of a lot of leverage there! From the prospectus: The Group will target an aggregate level of borrowings of 50 per cent. of Gross Asset Value over the medium term. Aggregate Group borrowings will always be subject to an absolute maximum, calculated at the time of drawdown, of 67 per cent. of Gross Asset Value. In fact, the proposed debt level on the above is 67% of GAV, so they should be looking to raise more equity in the medium term to get that back to the target 50%.
Sold out of these for a small profit. Looked like dead money.
I wonder how long it will take this one to make an acquisition. LXI seem to have no trouble finding acquisitions.
Triple Point Social Housing REIT raised the full £200m in an oversubscribed issue.
I don`t need to read the whole prospectus to know what I am buying. I am happy with my investment at the moment. If they don`t make any acquisitions in the next 2 months I will be out, as was the case with AEWL.
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