Residential Secure Income Share Discussion Threads

[panshanger1] 30/1/2024 12:43

Pretty unloved atm New year low

[dandigirl] 06/12/2023 19:19

£20m. Floating rate debt, a bit more.

[cc2014] 05/12/2023 11:29

sale of LA portfolio confirmed at around NAV. Whatever NAV is!

[makinbuks] 05/12/2023 11:22

Just watched the results presentation. Two points of interest on matters raised here:

First, as WilliamCooper stated, bathrooms and kitchens are not relevant to the shared ownership portfolio. For the retirement home portfolio they are actually pro actively replacing kitchen and bathrooms with a 8% target cash return. There is a program to sell in towns where they hold less than 7 properties and redeploy the cash in preferred concentrated areas either upgrading existing buildings or acquiring new.

Secondly, I asked and they confirmed that they are not in any way affected by the recent proposals on leasehold/ground rent from government

[makinbuks] 05/12/2023 10:13

Fully covered 4.12p represents 6.5% at todays price. I suspect we will see a long sideways move now possibly until this time next year when UK rates are cut. If the dividend is then raised by 5% and the market yield falls to 6% we would see a price of 72p or almost 15% higher than today. I'll hold

[ghhghh] 05/12/2023 07:52

But under offer at what price? They don't even reference to Book Value, was £20m at Interims.

[rik shaw] 05/12/2023 07:48

Dividend rebased to 4.12p pa, and local authority portfolio under offer to pay of floating rate debt.
1.03p dividend declared ex-div 14 Dec paid 17 Jan
l-secure-income-RESI/share-news/Residential-Secure-Income-PLC-Full-Year-Results-to-30-September-2023/92720943

[williamcooper104] 15/11/2023 16:56

Given the damage it would do to housing associations they'll probably be alright Yep they've been taking about this for years, but they did ban ground rents at other than a peppercorn for new leases The capex on shared ownership should sit with the tenantBut on the retirement properties it has to be with RESI - albeit they probably can defer it a bit longer than a normal landlord can given their tenants are likely to stay longer - but deferring capex often of course just increases the bill when it finally lands

[spectoacc] 15/11/2023 06:53

Can't see RESI being classed as ground rents in any way. It's also the umpteenth time in the last 5 years there's been mooted legislation on leasehold.

My beef with RESI is they've a cliff-edge CapEx problem when all the kitchens, all the bathrooms will come up for refurbishment at roughly the same time (say oer 2 or 3 years). It (IMO) completely negates the business model. I'd be interested to hear an argument why it doesn't - I don't see much in the accounts in the way of accruals.

Rented property is a wasting asset.

[williamcooper104] 14/11/2023 23:14

From the recently launched Government consultation on capping/abolishing existing ground rents - we don't know just how punitive an option will be taken yet - but from reading the consolation it looks like its going to be something rather unpleasant

Not sure if Resi's index linked rents on their social housing units qualify as ground rents - but if they do it could be a huge problem - no further inflation linked uplifts could well default their RPI linked bond


"1.103. Currently, landlords who granted shared ownership leases before the Leasehold Reform (Ground Rent) Act 2022 came into force can charge a ground rent on the shared ownership leaseholder’s equity stake in their home. We believe that the cap on ground rents should be applied to these existing leases, limiting any ground rent charged on the shared ownership leaseholder’s equity stake to the chosen cap. Our proposal for a cap on ground rents would have no impact on the ability of landlords to charge a specified rent. This mirrors the position taken previously by the Leasehold Reform (Ground Rent) Act 2022. We invite consultees to comment on this proposal (Q20)."

[panshanger1] 03/11/2023 15:42

Think it's there day again !!

[panshanger1] 26/10/2023 17:04

Haven't heard anything Think it's just their turn !!Some of the renewables having a better day today

[cwa1] 26/10/2023 16:43

RESI taking a bit of a beating today, anyone heard anything?

[makinbuks] 04/8/2023 11:00

Yes but to be fair, mostly driven by interest rates rather than anything theyve done or not done

[quepassa] 03/8/2023 20:22

The price graph tells the sorry tale since IPO.

[makinbuks] 03/8/2023 11:36

On the one hand its encouraging that inflation based rent increases outpaced the increased discount factor. On the other, they repeat this vague warning:

"Continuing to focus on selective disposals of non-core assets, to reduce floating rate debt levels. This aims to deliver less volatile and more sustainable income, allowing ReSI plc to reposition the dividend for growth in line with underlying inflation-linked rents"

Precisely what have they disposed of, at what price and how did it compare to the modelled value? What are their future intentions with regard to this? Without knowing that, the trust is currently uninvestable.

Two other REIT's issued RNS's which I thought were interesting without a direct read across: BBOX today, £84m sale at NAV, £235m disposals YTD, clear intention to realise assets and cut debt; and AIRE yesterday, 19 properties, full disclosure of the tenants, the term the rent, 100% transparency. You can love it or hate it but you are not left with many questions.

In contract Gresham are very political in the wording of the RESI announcement. It takes me back to the Gresham House Strategic/Rockwood or Harwood saga. Gresham showed scant regard for shareholders in that. Their sole focus was maintaining AUM.

[panshanger1] 03/8/2023 10:52

Portfolio update this morning

[cwa1] 15/6/2023 08:43

XD today, pay day 14/7

[makinbuks] 07/6/2023 12:33

Yes they need to sell property to repay the Nat West floating rate loan. Santander predicted to grant temporary relief of the LTV covenant which they must be pretty close to now with the gilt movements post period end. If the revisionary surplus really is 17% thats absolutely the sensible thing to do.

Expenses should fall with no aborted equity raise and energy costs. Lets see whats left for a covered dividend after all that

[income investor] 07/6/2023 08:47

Very disappointing interims. Dividend cover falls to 86 per cent. Apparently incurred costs on abortive equity raise - seemed very optimistic as has only traded above NAV for a short time. Talk of selling non core assets to repay floating rate debt and then rebase (ie cut) dividend. Bad management!

[cwa1] 07/6/2023 08:12

Interims...



Dividend...

Residential Secure Income plc

Dividend Declaration



Residential Secure Income plc (LSE: RESI), which invests in independent retirement living and shared ownership to deliver secure, inflation-linked returns, is pleased to declare an interim dividend of 1.29 pence per Ordinary Share to be paid in the financial year to 30 September 2023.



The full 1.29 pence of the dividend will be paid as a Property Income Distribution ("PID") in respect of the Company's tax-exempt property rental business.



This dividend will be paid on 14 July 2023 to Shareholders on the register as at 16 June 2023. The ex-dividend date is 15 June 2023.



ReSI intends to pay dividends to Shareholders on a quarterly basis and in accordance with the REIT regime.