Residential Secure Income Share Discussion Threads

[eekhoorn] 18/12/2024 17:19

Full year results & dividend declaration are normally at the start of December. Probably a delay due to the meeting, maybe wishful thinking to hope for a sale this early but all should be revealed soon.

[grahamg8] 18/12/2024 16:59

I agree Pants, we should be getting a dividend soon. RESI is a REIT and so unless there are extraordinary reasons most of the income should be paid out. Possibly if they already have buyers for a substantial part of the business that announcement may be on its way. I can't think any other reason not to expect our 1.03p.

[hugepants] 16/12/2024 12:07

A NAV update and dividend declaration due here? Looks to be later than previous years.

[mark5man] 29/11/2024 22:30

Just got this message from HL - sure there will be more later, but quite a quick decision

"Residential Secure Income REIT – Liquidation

The board of Residential Secure Income REIT has announced details of a proposal to liquidate the company and return cash to shareholders. The company will appoint a liquidator subject to shareholder approval at a meeting to be held on 6 December 2024.

The company is expected to have sufficient cash resources to make distributions. The date for these has not yet been announced. We will contact you again once we have received confirmation.

You’ll need to vote before 7pm on Tuesday 3 December 2024 so your vote can be passed onto the company before the shareholder meetings. If you’ve recently bought shares, it will take 2-3 days for you to be able to vote on these."

[dandigirl] 22/11/2024 13:36

I can't access the latest document dealing with this wind down.

Anybody else having issues please?

[wshak] 17/10/2024 13:50

I've been buying #RESI in size today.Organised a clear out trade at 57.4p - we will see if it genuinely takes the seller out.Managed wind-down situation, should be relatively straightforward to generate a decent profit given discount to NAV.https://x.com/wshak1/status/1846910954279244139?s=61&t=iNmKiKsOAdWNrvKWvU8FsA

[quepassa] 11/10/2024 06:56

post 12 refers

[redhorse2020] 07/10/2024 07:20

Judging by the recent sales I'd have thought NAV should be easily achievable, especially with the market improving, reversionary surplus, rates coming down, residential property prices on the rise etc. Recent sales would also indicate that it may take some time but the dividends will keep flowing so happy to be patient for now

[spectoacc] 06/10/2024 14:21

Timescale is the big uncertainty, 6 months or 3 years? Experience of these says they always take much longer than expected IMO.

[grahamg8] 06/10/2024 13:45

Any thoughts on a bail out price? With an share price of 58.4p and dividend of 4.12p the yield is 7.05%pa. That on its own is not enough to keep me here. I need the prospect of a capital gain, and a view on timing. We have a quoted NAV, selling costs, sale at a discount, possible premium from the reversionary gain. At the moment I'm working on net 73.1p. Which gives me a gain of 25.2%. But I'm going to have to wait for that, let's say 12 months and discount at 10%pa. Now the capital is only worth 65.8p, and I would continue to hold up to this price. In which case I would get a future return of 73.1p plus an income of 4.1p, instead on an instant 65.8p. If the sale(s) takes longer then my tendency to sell now increases, as would the prospect of a lower eventual payout. RESI looks like quite a strong hold to me at present. I might even be thinking of a modest top up if the share price dipped further, and I actually had any spare cash at the present.

[davebowler] 05/10/2024 09:36

htTPs://quoteddata.com/2024/10/residential-secure-income-to-wind-down/?utm_medium=email&_hsenc=

[redhorse2020] 03/10/2024 09:03

Guess it's good timing at least.... https://amp.theguardian.com/money/2024/sep/30/uk-house-prices-hit-highest-annual-growth-since-2022

[williamcooper104] 03/10/2024 07:15

Likely to be two portfolio sales

[grahamg8] 03/10/2024 07:15

Correct Arbus, from Q3 update "Loan-to-value ratio of 52%, down from 53% at 31 March 2024 and reduced to 41% when including 26.3% reversionary surplus". The calculation is Portfolio £315m, LTV 52%, therefore debt £163.8m. Shares 185.16m so rough NAV 81.6p, slap in the middle of quoted 76.7-83.6pps. To move the LTV to 41% the portfolio has to increase to £399.5m and the NAV would then be 127.3p Sounds good? The problem is that residents have a right to occupy and you can only realise the premium when they move out or die. A buyer may pay a little over the top for this 'premium' but as sellers RESI would not get anywhere near the extra 'hidden' asset of £84.5m.

[panshanger1] 03/10/2024 07:13

Any thoughts that this might be taken out in its entirety

[spectoacc] 03/10/2024 07:04

No, partly because of costs not being disproportionate if not spread over a larger asset base, but mainly for the point I've made on these & others (particularly PRSR) - if you've bought/built most of your property at the same time, your future CapEx all arrives at roughly the same time too.

Rental property is a wasting asset.

[denbo5] 03/10/2024 07:02

Can someone explain to me please why the discount to NAV is such a serious problem it requires winding the company up?

I get that it’s not possible to rase capital, but why is that essential? Can’t they just maintain the existing assets with what they’ve got until the discount closes (which it will, given time)?

[arbus5000] 03/10/2024 06:53

this is a shame, the ever reducing size of the UK reit market.

Isn't there a reversionary premium to book value for some of the remaining properties in the portfolio?.

[invisage] 03/10/2024 06:47

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.

[redhorse2020] 03/10/2024 06:47

Didn't the last update mention that they'd already started shifting some properties? Only 1 percent or something but at a significant premium to book value (maybe 20 percent?) which would bode well for future realisations.

[spectoacc] 03/10/2024 06:39

LA sale completing end of the year, so any wind-up likely to be well beyond. They've acknowledged the business model has failed, insofar as that model like so many others required issuing more shares/buying more stock.

[williamcooper104] 03/10/2024 06:37

Assuming there's a change of control in the debt then the EPRA NAV is the one to look at You can take c10% of that for a portfolio sale Still leaves us with c25% capital gain from current sp

[williamcooper104] 03/10/2024 06:32

Is the long term debt portable or does it have a change of control Would have thought that it's a simple matter of just having two portfolio sales Being able to attach the debt would be hugely valuable

[grahamg8] 03/10/2024 06:28

I didn't see that one coming. At 30/6 EPRA NAV 76.7p, IFRS NAV 83.6p. Overnight share price 53.3/54.6. Local Authority sale now confirmed at just above book is a relief. It might take a while but we should see a capital gain going forward. Meanwhile enjoy the dividend.

[rik shaw] 03/10/2024 06:16

Proposed managed realisation and return of capital