Residential Secure Income Share Discussion Threads

[davebowler] 20/1/2019 16:43

htTPs://citywire.co.uk/investment-trust-insider/news/liberum-top-alternative-investment-funds-for-2019/a1192485

[quepassa] 08/12/2018 06:49

My posts, 12 , 14 and 19 refer and explain.


This vehicle is all down-side and no upside in my view.


ALL IMO. DYOR.
QP

[jonwig] 08/12/2018 06:37

shauney - look at the sps of PRSR and CSH, which have also tanked recently. Why? I don't know, but First Priority Housing Association had financial problems earlier this year, and there have been complaints about profiteering:



Has Mr Corbyn got them in his sights?

I tend to stay away when I can't explain a situation.

[shauney2] 07/12/2018 19:26

What am i missing here? Seems seller(s) wanted out today plus the UT added to the fall but 17% below NAV and a good recent report make them look very interesting.

[mridyard] 27/11/2018 02:47

I've been building a position in this REIT for a while. This years target div 5p. Only a matter of time before discount narrows IMO.

[davebowler] 23/11/2018 10:43

Liberum;
Residential Secure Income

7% portfolio valuation uplift drives NAV gain

Mkt Cap £145m | (discount to NAV) -14.1% | Div yield 3.3%

Event

Residential Secure Income's NAV per share at 30 September 2018 was 105.1p per share. NAV total return in the period from launch in July 2017 is 9.5%. NAV total return in the quarter to September was 3.9%.

86% of the NAV return is due to a 7% revaluation uplift on assets acquired. The remainder is due to income earned in the period and a small uplift from share buybacks.

Since launch, the company has acquired £234m of assets of which £184m are retirement properties. The remaining assets comprise local authority housing (£34m) and shares ownership properties (£16m). The average yield on acquisition is 5.0%. The company expects to complete further acquisitions in the near term which would deploy all of its remaining debt capital.

Total dividends declared for the 14 month period were 3.0p which werre 0.3x covered by recurring earnings.

Liberum view

The majority of assets acquired by the company are either leased to or operated by established housing associations or operators (Places for People, Mears, First Port, Luton Borough Council). The slow pace of deployment after IPO contributed to the share price weakness but the company has made steady progress in terms of acquisitions. The discount differential to the peer group looks too wide in our view (-14.1% discount compared to 2.5% average premium for Civitas and Triple Point).

[davebowler] 10/9/2018 08:09

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.

[davebowler] 29/6/2018 07:53

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).

[davebowler] 21/6/2018 09:07

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.

[hugepants] 16/5/2018 11:34

Acquisition announced today

[hugepants] 08/5/2018 14:20

Picked up some on the hope it rockets back up to the IPO price when fully invested.

[quepassa] 22/4/2018 09:39

Posts 12 and 19 refer

[advfnusermum] 18/4/2018 11:48

Probably just bought their own houses with it. Bloody good idea if so, and wish I'd thought of it myself.

[tyranosaurus] 18/4/2018 11:27

Even with buybacks the price is going down again.

[jt35] 18/4/2018 08:34

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.

[advfnusermum] 17/4/2018 08:18

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.

[quepassa] 09/4/2018 08:50

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

[davebowler] 09/4/2018 08:32

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.

[asmodeus] 09/4/2018 07:40

Buyback announced.

[tyranosaurus] 26/3/2018 10:19

The silence is deafening as they say.
Still sinking like a brick.

[tyranosaurus] 19/3/2018 18:32

This is in freefall at the moment.
Need them to update us on what, if anything, is going on.

[skinny] 16/2/2018 12:42

Just to bring the thread in to 2018 - ex dividend yesterday.

Jefferies International Buy 98.80 - 116.00 Reiterates

[tyranosaurus] 24/11/2017 13:14

No mention of the initial yield on these.

[davebowler] 24/11/2017 09:29

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).