Residential Secure Income Share Discussion Threads

[makinbuks] 24/1/2025 10:48

You are spot on up4it

[hugepants] 23/1/2025 17:47

Tipped by Simon Thompson in the IC

[wshak] 22/1/2025 11:25

Seems a solid play.

NAVs will drop when updated again in mid-February as latest reported NAVs don't reflect explosion in GILT yields.

[up4itt] 22/1/2025 11:25

I watched the presentation, from which it was clear that the wind-down is not in the long-term interests of the shareholders, given that (a) this is not a good macro environment in which to be disposing of the portfolio and (b) this is a well-managed business that produces a good income for investors for the foreseeable future. On the other hand, the wind down may well be in the interests of Gresham House, who wish to exit as soon as possible and hope to make a short-term gain.
I’m sure that these facts are well known to the the RESI team, who spent most of the presentation demonstrating convincingly that RESI is an efficient, socially responsible and financially viable business, yet were vague on the question of the costs of the wind-down (which of course will be borne by shareholders) and were unable to explain how they will be able to “maximise value” at a time of rising long term yields, relatively poor macro conditions and against the backdrop of a self-imposed deadline of 12-24 months.
Shareholders should be able to see some short term benefit from the disposal of the assets, given the currently prevailing wide discount on NAV, but only at the cost of giving up a secure revenue stream and the prospects of better long term capital appreciation.

[colinf63] 22/1/2025 10:38

i currentlyhave 5 companies in wind down at various stages and i have to say based on todays RESI call they are by far the best managed, most in control, and open. I wish i had enough money to buy the company :-) I will be buying some more this month seems to me like well managed almost 9% div while ongoing, and a large hopeful realisation result getting much closer to NAV than the current share price, over teh 12-24 months wiond down i am hoping for >40% overall return!

[wshak] 22/1/2025 10:12

Conference call on now.

Wind-down to take 12-24 months

[makinbuks] 22/1/2025 09:49

For me, they've done the right thing in repaying the floating debt. Now they have a nice model that works and provides stable income. Gresham are no longer interested in managing it because they can't grow it so they want to wind up at the worst possible time for shareholders. Surely someone can come up with a management proposal that sits tight for (say) ten years and captures the benefit of that revisionary surplus. Nobody expects a 10 bagger but there's a steady 6/7/8% per anum TR to be had here

[hugepants] 22/1/2025 07:49

The results look quite good.

Note there are 2 NAVs;
EPRA NTA 74.6p
IFRS NAV 81.6p

"IFRS NAV benefited from the valuation of the USS debt adding £12.8 million / 6.9 p to IFRS total return (not included in EPRA NTA)"

and

"£89 million reversionary surplus of vacant possession value compared to fair value"

1.03p dividend.

[williamcooper104] 21/1/2025 16:30

Asset values must have fallen with gilts rising - especially the shares ownership which is a close index linked bond proxy Thus id rather get in at around 50p now

[cwa1] 21/1/2025 16:26

Big block gone on the order book at 54p. Wonder if it is likely to be filled? Will be interesting to see.


Hope results aren't disappointing tomorrow :-/

[quepassa] 21/1/2025 16:25

..... I see you are today posting on The Phoenix thread but talking about Aberdeen.

- Using your logic I guess one could also say.....

" I'm not sure the Phoenix thread is the place to discuss other insurance companies"


so why can you talk about other insurance companies on the Phoenix thread but you comment on someone doing a similar thing here?

Each to his own, CWA, each to his own.

[cwa1] 21/1/2025 15:53

There are other resi property investors at varying levels of discount-but I'm not sure if the RESI thread is the place to discuss them. However, each to their own QP

[quepassa] 21/1/2025 15:45

it is relevant because it is interesting to see another residential property investor which is trading at 70% discount

[cwa1] 21/1/2025 15:32

Talking of RESI, just taken a handful at 54'ish pence. Looking pretty weak at the moment

[cwa1] 21/1/2025 15:23

Not that it's especially relevant to a thread about RESI-but the share price of MPO IS 25-28p

[dandigirl] 21/1/2025 14:19

SP is 55 not 25.

[quepassa] 21/1/2025 12:06

Trading at a massive 70% discount to NAV .

Share price 25p. NAV 83p.


Read the Investor Update H2 2024 released on 16/1/25.

Price just beginning to tick up but...

Not yet on the investor radar.

LSE:MPO

Another wind-down residential property fund.

But just look at the big rise in disposals which they have recently been achieving against a significantly improving economy and government stimulation

ALL IMO. DYOR.
QP

[colinf63] 21/1/2025 10:35

and hopefully some news on scope for capital distributions, fingers crossed!

[eekhoorn] 15/1/2025 12:46

'Residential Secure Income plc (ReSI plc) (LSE: RESI), which invests in independent retirement living and shared ownership to deliver secure, inflation-linked returns, will publish its Annual Results for the year ended 30 September 2024 at 07:00am BST on Wednesday 22 January 2025.'Annual results finally released next week, hopefully this will include a dividend announcement. We should also be due a NAV update for 31st Dec around the end of this month.

[dandigirl] 13/1/2025 17:25

2023's results were published on 5 Dec 2023.Those for 9/2024 should be published now.

[eekhoorn] 13/1/2025 14:35

I should imagine that the wait for the sale confirmation of the local authority portfolio is what has delayed the results. It's not the sale of the whole portfolio that I was hoping for but excellent news nevertheless.

[eekhoorn] 13/1/2025 14:26

'Sale of Wesley House, Luton Residential Secure Income plc ("ReSI") (LSE: RESI) is pleased to announce that it has completed the sale of Wesley House, its second local authority housing property in Luton, which is used by Luton Borough Council to house residents in need. The sale completed for a net consideration of c.£15 million, marginally in excess of the £14.8 million valuation reported in the interim results as at 31 March 2024. The sale proceeds will enable ReSI to repay its £15 million floating rate debt with Santander in full. The sale of this property means that as ReSI implements its managed wind-down strategy, it is concentrated exclusively in the independent retirement rentals and shared ownership residential sub-sectors.' 

[hugepants] 12/1/2025 19:54

03/10/24

"...ReSI plc's sole remaining local authority asset has now exchanged for sale at a price marginally in excess of book value, with completion scheduled to occur by the end of 2024, enabling the full repayment of the Company's floating rate debt. This will concentrate ReSI plc's portfolio in its two preferred residential sub-sectors - independent retirement rental and shared ownership - where ReSI plc's high-quality portfolios are underpinned by inflation-linked leases and long-term leverage, supporting long-term shareholder returns..."


Still waiting on confirmation of completion of local authority asset sale.

[hugepants] 10/1/2025 15:40

Hopefully nothing we don't already know about! The lack of news, and a divi announcement, probably are not helping but I'm topping up.