Residential Secure Income Share Discussion Threads

[tyranosaurus] 12/11/2017 11:06

Now 4 months since listing and still nothing concrete has happened.
No wonder these shares are drifting downwards.

[davebowler] 21/9/2017 10:12

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.”

[jonwig] 21/9/2017 06:27

Just in case you'd forgotten, we're very busy:



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%.

[tyranosaurus] 10/9/2017 08:35

Sold out of these for a small profit.
Looked like dead money.

[tyranosaurus] 18/8/2017 11:51

I wonder how long it will take this one to make an acquisition.
LXI seem to have no trouble finding acquisitions.

[jonwig] 04/8/2017 06:06

Triple Point Social Housing REIT raised the full £200m in an oversubscribed issue.

[tyranosaurus] 31/7/2017 10:32

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.

[quepassa] 29/7/2017 22:50

jonwig - the fact is, as I have said already, that

"It's just another structured speciality property investment vehicle run by Committee. Fees upon fees upon fees for everybody feeding off IPO monies."


QP

[jonwig] 29/7/2017 10:14

tyranosaurus - you seem to have bought something without knowing what you bought (ie. not reading the prospectus), and now complain bitterly that it isn't doing what you expected.

QuePassa - the fact is, as I've said already, this is a suitable investment for certain types of investor, as part of a portfolio.

[tyranosaurus] 29/7/2017 08:41

QuePassa

That`s why these companies are still coming to the market when they know they won`t raise all the monies they want.

[quepassa] 28/7/2017 16:11

It's just another structured speciality property investment vehicle run by Committee. Fees upon fees upon fees for everybody feeding off IPO monies.

[jonwig] 28/7/2017 15:18

Paid quarterly in advance with effect from admission date - you haven't read the prospectus, I suspect. Split 3:1 cash:shares.

[tyranosaurus] 28/7/2017 15:13

How has the fund management earned £213,287 already ?
They should earn when they have done something useful,like investing our money.

[quepassa] 20/7/2017 08:27

Corporate financiers desperate to make IPO fees just keep on touting the idea as much as they can even if the market is swamped with product.

With more flotations, it significantly hampers the share price prospects of the other sector comparisons as it draws money into the IPO's and away from them.

It's just another structured speciality property investment vehicle run by Committee. Fees upon fees upon fees for everybody feeding off IPO monies.

The only positive thing is that it drives up market price and demand for suppliers, like WJG, of the investments they need to invest in.


ALL IMO. DYOR.
QP

[jonwig] 20/7/2017 07:07

Intention to Float, Triple Point Social Housing REIT plc:



I'm surprised at the continuing queue. The last three REIT issues raised less than target.

[tyranosaurus] 12/7/2017 10:22

These are apparently down 3.075p to 100.125p this morning on the monitor.
That`s a load of bull as this is the first day trading.

[jonwig] 12/7/2017 06:04

"Further to the announcement on 7 July 2017, the Company is pleased to announce that 180 million ordinary shares (the "Ordinary Shares") will today be admitted to trading on the Main Market of the London Stock Exchange and the premium segment of the Official List of the UK Listing Authority ("Admission"). The Ordinary Shares will trade under the ticker: RESI (ISIN: GB00BYSX1508)."

[jonwig] 11/7/2017 05:50

Some background;

[quepassa] 07/7/2017 11:22

Yup.

You are buying a yield. that's all really.


And property revaluations will at best move in line with the market. That's all.

No sparks. No development upside.




My daughter lives in a block of flats where the management company charges the tenants £34 per hour for a cleaner to come and do the hoovering/dusting in the common parts.


I live in my own house nearby and I employ my own cleaner and she is delighted to receive £10 per hour for same.




As I say, Good Luck All. May you prosper.



ALL IMO. DYOR.
QP

[jonwig] 07/7/2017 10:57

"... speciality structured property investment vehicles." Most of these trade at or near NAV, though REITs such as AGR and similar ones (health centres) trade at a double-digit premium. In contrast, the largest REITs trade at a significant discount to their navs.

"... run with great indifference by committee" These managers are given a remit by the BoD which is one of strong compliance, and lack of risk: safety first. Do you suggest avoiding the fees you list?

Buyers of this and similar are virtually guaranteed their 5% yield and some inflation proofing. It suits some investors who might be concerned at the state of equity markets. And social housing has been historically a very safe sector.

That said, too many have come to market recently so some indigestion is understandable. Their error was to state a target of £300m. Had they said £150m with the option to increase, they'd have saved some face.

[quepassa] 07/7/2017 09:56

The question is why they got 40% less than their upper target. Clearly coming nowhere close to being oversubscribed.

Good luck all but I personally have never had good experiences with speciality structured property investment vehicles.

They seem to me generally to be run with great indifference by committee rather than by an owner with a strong vested interest. They appear on the scene when a new sector such as PRS is hot and much in the press and grabbing investors' attention.

They also appear to me to be a rich fee trough for property advisers, surveyors, solicitors, actuaries, management companies to feed off and handsomely gorge at the expense of subscribers/shareholders.

Whilst I am not in any way saying/inferring/implying that any of this applies in any way to RESI-REIT, these companies don't really add much value but invest passively levying not insignificant fees on the fund.

Good Luck All.

ALL IMO. DYOR.
QP

[tyranosaurus] 07/7/2017 09:39

They successfully raised £180m.
They hoped to raise £300m.
Hope this doesn`t affect their plans too much.
Obviously we have got all we applied for (again)

[daveofdevon] 07/7/2017 09:10

According to their website they raised £180 million

[tyranosaurus] 05/7/2017 12:36

Sold out of AEWL and gone for these.

[jonwig] 03/7/2017 06:32

A good article, thanks. I haven't committed myself yet, either way.