Residential Secure Income Share Discussion Threads

[davebowler] 30/12/2021 15:22

Trading at NAV (end Sept) I see today.

[panshanger1] 10/12/2021 07:49

Questor covering in the Telegraph today

[pyufak] 01/12/2021 09:49

Great news - should be game changing for the outlook of this REIT.

Where else do you get 5% covered dividend linked to CPI on this quality of asset base (with the exception of secure income reit which is one of my other favourites giving 4%+ linked to RPI).

I think we'll see the share price tick up and I hope the management can raise funds to increase the asset base / liquidity and accessibility of the REIT. It would also allow the reit to be held on margin in interactive brokers which would be nice.

[panshanger1] 01/12/2021 08:20

Excellent results this morning and increase in dividend

[orinocor] 14/11/2021 14:00

I added on Friday at 98p and looking forward to the upcoming dividends that were announced in December and January last time.

[pyufak] 23/10/2021 06:54

I’ve decided similar. Doubled my holding just below the 100 mark. I guess I think of RESI more fondly than QuePasse given I am looking for income not nothing too risky from the stock. I am keen to see them achieve dividend cover which recent RNS updates have said they are on course to do

[orinocor] 18/10/2021 16:19

That's quite a drop from the 112p in september.
I've decided to buy in at under 100p on the assumption this is the safest 5% yield you will find.
Famous last words I know.

[brwo349] 14/10/2021 17:06

lol good points

[quepassa] 05/10/2021 10:53

Price at IPO in summer 2017 - 100p.

Price today more than 4 years later - 100p.

Shocking performance. Even given that yield has gone from 3% to 5%.


And do remember that residential real estate values are up 20-30% since 2017.


Post 12 refers.


ALL IMO. DYOR.
QP

[melloteam] 05/10/2021 10:39

Just to let shareholders and prospective investors know that Residential Secure Income, Oakley Capital Investments and Strategic Equity Capital will be presenting at Mello Trusts and Funds webinar event tonight, Tuesday 5th October at 5:00pm-9:00pm. There will be over 200 investors attending and these are very popular shows with company presentations, fund manager and investor interviews, and panel sessions.

The Programme is as follows:

5.00 pm Reg Hoare presents his selection criteria when investing in Investment Trusts and Funds
5.20 pm Company presentation by Residential Secure Income
5.50 pm Company presentation by Oakley Capital Investments
6.20 pm Andrew Hollingworth, fund manager, presents his investment strategies and ideas
6.40 pm Company presentation by Strategic Equity Capital
7.10 pm Investment Trusts and Funds Panel Session

It is free to register, just click here:

[pyufak] 18/8/2021 10:02

I like this name - been in it for a long time and very happy we will be seeing dividend cover soon. I agree with Panshanger that an equity raise is likely to be in the pipeline - the manager surely going to take the opportunity. I will hope to use it as a top up to my holding but also would be very keen to seem them deploy funds quicker this time.

Perhaps can use financing from the banks for a period so they can then equity raise and to pay this back and speed up the deployment process rather than the years it took after the initial launch.

[panshanger1] 06/8/2021 14:06

Some chunky trades going through

[panshanger1] 06/8/2021 13:12

Market definitely re rated this Equity raise might be coming down the tracks

[badtime] 06/8/2021 12:34

Ex div yesterday as well

[markie7] 06/8/2021 10:57

3yr high here

[makinbuks] 29/7/2021 09:50

I agree. What I believe it illustrates is that the valuation is a desk top exercise looking at occupancy rates, defaults, yields and only considering market value relative to what someone would pay to buy that yield as an investment. It is not a sum of the parts estate agent style "what would you put this on the market for" valuation.
I would say that builds another layer o comfort for shareholders and would further justify a premium share price to NAV. I stick to my £1.10 fair value assessment

[panshanger1] 29/7/2021 09:40

Surprised given the near 10% rise in property prices over the last 12 months the NAV growth wasn't better here

[davebowler] 29/7/2021 09:20

Liberum;
Residential Secure Income's NAV at 30 June 2021 was 105.5p, representing a 1.6% NAV total return in Q2 2021 and 3.7% over the last 12 months.

EPRA EPS increased by 10% in the quarter to 1.1p per share, resulting in dividend cover of 0.9x. The earnings improvement was primarily due to £19m of shared ownership acquisitions in March 2021 and occupancy improvements in the retirement living portfolio. 99% of rents were collected in the period. The manager still expects full dividend cover from 1 July 2021.

NAV performance benefited from a 1% like-for-like valuation gain in Q2. At 30 June 2021, RESI's portfolio comprised 3,059 homes with a total value of £348m. The valuation gain was due to a small amount of yield compression and like-for-like rental growth. The voids on the retirement living portfolio have reduced to 7%, in line with pre-Covid levels. The shared ownership properties are 96% occupied, with a further 3% reserved.

Gross LTV at the period end was 48%, broadly in line with the 50% target. The company has £162m of outstanding borrowings with a weighted average cost of debt of 2.3% and an average life remaining of 23 years.

[pyufak] 07/7/2021 13:46

Hopefully give first option to the shareholders - been in this one for a very long time and happy with the performance. Any share issuance done at dividend cover I would be keen to participate in but hope they use some over-draft facilities somewhat so they don't end up sitting on cash and struggling to deploy again.

[makinbuks] 15/6/2021 09:21

Yes its taken them a long time to execute the plan and a few setbacks along the way but they now look set for a premium rating then a share issue to fund another phase. I would think 110p

[panshanger1] 15/6/2021 08:08

New 52 week high at 103

[badtime] 14/6/2021 20:46

On a nice little move upwards

[davebowler] 27/5/2021 10:08

Liberum;
Full dividend cover expected from July

Mkt Cap £166m | Share price 96.8p | Prem/(disc) -7.4% | Div yield 5.2%

Event

Residential Secure Income's NAV at 31 March 2021 was 105.1p (previously announced), representing a 2.5% total return over the six months since September 2020. NAV performance in the period was driven by a combination of net income (+1.8p) and a like-for-like valuation increase on the portfolio (+1.1p). Like-for-like rental growth over the half-year was 1.1%, in line with RPI. At the end of March, the property portfolio was valued at £325.2m, representing a 0.8% like-for-like fair value increase.

Rent collection in the quarter remained secure, with 99% collected, which is unchanged throughout the pandemic. Voids in the portfolio are now below 8%, which is only slightly ahead of the pre-Covid average of 7%. Adjusted EPRA EPS in the period were 1.8p, representing 0.72x cover. Dividend cover improved in the three months to March 2021 to 0.82x and the company expects full dividend cover to be achieved in July 2021. Once the dividend is fully covered, the board plans to increase dividends in line with inflation.

At 31 March 2021, RESI's portfolio comprised 3,060 homes across 797 locations in the UK. The net initial yield on the portfolio was 4.5%, a small decrease since September 2020 (4.7%). 61% of the portfolio is in retirement rental, 29% is in shared ownership properties and 10% is leased directly to local authorities.

RESI had £10.8m of cash at the end of March and an LTV ratio of 47%, broadly in line with the 50% target. The company has £162m of outstanding borrowings with a weighted average cost of debt of 2.4% and an average life remaining of 23 years.

[cwa1] 27/5/2021 07:39

27 May 2021

Residential Secure Income plc

("ReSI" or the "Company")

Interim Results to 31 March 2021

Residential Secure Income Fund plc (LSE: RESI), which invests in affordable shared ownership, retirement and local authority housing, is pleased to announce its interim results for the six months ending 31 March 2021.

Financial highlights - full deployment and void reductions driving increasing dividend cover

-- Operating profit before property disposals and change in fair value up 17% to GBP5.6 million (1H20: GBP4.8 million)

o 1.1% like-for-like rental growth in line with RPI

o 99% of rent collected during the half year to March 2021, continuing to demonstrate defensive characteristics of the portfolio

-- IFRS Net Asset Value Total Return of 2.9 pence per share for the half-year, including 1.8 pence recurring income (1H20: total return of 0.8 pence)

-- IFRS Net Asset Value of GBP179.7 million, or 105.1 pence per share (FY20: 105.0p)
-- Adjusted earnings per share of 1.8 pence, up 29% (1H20: 1.4 pence per share)
-- Total dividends for the half-year of 2.5 pence per share, in line with target (1H20: 2.5 pence per share)

-- Gross rental income up 5%, to GBP10.7 million (1H20: GBP10.2 million)

[makinbuks] 10/5/2021 12:04

very encouraging and recent house price rises should feed through into further NAV appreciation this quarter