Residential Secure Income Share Discussion Threads

[dickiehh] 20/1/2023 08:11

What's going on here, anyone know? Why the fall yesterday?

[rik shaw] 01/12/2022 07:29

A fourth interim dividend in respect of the quarter to 30 September 2022 of 1.29p per Ordinary Share, which will be payable on 18 January 2023 .. The ex-dividend date is 8 December 2022.

[quepassa] 20/10/2022 18:15

jonwig.

more than 5 years ago, your post 13 of July 2017:-


"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."


Care to comment?? Especially about "inflation proofing".




IPO price 90p.

Price now 85p

Max 5 year price 120p.


Horrible.

As I said 5 years ago these structured vehicles are run with great indifference and are just a great feeding trough of fees for their advisors.


ALL IMO. DYOR.
QP

[williamcooper104] 20/10/2022 17:35

Already mutterings about shared ownership being the next mis-selling/ground rents scandal It isn't and shouldn't be - but doesn't mean that it won't be My guess is that those RPI plus rents will go to CPI caped when enough shared ownership residents kick up enough of a fuss RESI has largely sold away its RPI upside via its index linked debt - so could be quite painful

[cwa1] 20/10/2022 16:57

I know it is in connection with his retirement but still not spectacularly good timing...

[markie7] 30/9/2022 14:38

full correction here. very odd week

[davebowler] 14/9/2022 09:56

Liberum;


Residential Secure Income

£50m investment in shared ownership properties and extension of RCF

Mkt Cap £212m | Share price 114.5p | Prem/(disc) 3.3% | Div yield 4.5%

Event

Residential Secure Income (RESI) has announced a partnership with social impact real estate firm HSPG. As part of the partnership, RESI will acquire ownership of properties worth up to £50m over the next three years while HSPG will develop the properties and is responsible for letting them out to shared owners. The first transaction has already been completed. In it, RESI acquires 21 completed homes at the Laureate Fields development in Felixstowe, Suffolk for £2.7m. This acquisition brings RESI's shared ownership portfolio to 725 homes and a further 59 committed homes.


RESI also announced the extension of its existing RCF with Santander from £10m to £25m. The expansion comes with a reduction in the interest rate margin from 2.8% to 2.25% and a one-year extension of the facility to March 2025.

Liberum view

With the expansion of the RCF, RESI has now sufficient cash capacity to fully finance the £50mn partnership with HSPG. As peer the interim statement, RESI had £34.6m cash at hand. With the expanded RCF that so far has not been tapped into, that rises to £59.6m. However, tapping into the RCF would come at a material cost to RESI, since SONIA is now at 1.7% and rising. With the reduced spread, that still is an expensive source of working capital at 3.95% annual rate of interest and rising. But it will enable RESI to better manage its working capital position and complete the deal with HSPG without the need to raise additional capital in current volatile markets. It's the right thing to do at this time.

The shared ownership market also is more lucrative for RESI with rents contractually growing at RPI + 0.5% each year and a levered yield of the existing shared ownership portfolio of 7.1% vs. 6.9% for the retirement housing estate. Furthermore, there is a significant shortage of shared ownership schemes in the UK as evidenced by the 100% occupancy rate for the existing RESI shared ownership portfolio vs. 94% for the retirement housing portfolio. With the £50m partnership announced today, the portfolio of RESI is shifting more towards an even split between shared ownership and retirement living, which should improve income generation over the coming years.

[spectoacc] 01/9/2022 09:06

Can only see a Motley Fool tip - does feel a tip-y move.

[panshanger1] 01/9/2022 09:02

Nice spike here this morning Have I missed something

[davebowler] 27/7/2022 09:06

Liberum;
Portfolio value increases by 0.9% in Q2 as a result of inflation-linked rental reviews

Mkt Cap £197m | Share price 106.3p | Prem/(disc) -4.9% | Div yield 4.9%

Event

Residential Secure Income's NAV per share at 30 June 2022 was 109.3p, representing a NAV total return of 2.0% in Q3. The portfolio, comprising 3,291 homes, increased in value by 0.9% to £389m in Q2.

The increase in portfolio value was driven by 2.3% like-for-like rental growth, with inflation-linked rental reviews growth of 6.1% (on 1,142 properties) providing the catalyst. Total rental collection was above 99% in the period. Occupancy in the period was 96%,, representing a 1ppt increase versus Q1 2022.

RESI's LTV ratio at the period-end was 44%, based on total debt of £185m which is 92% fixed or hedged. The debt has a 22-year maturity and weighted-average cost of 2.2%.

[panshanger1] 31/3/2022 13:51

Nice recovery here

[badtime] 22/2/2022 18:24

Oh well ..peeps can buy far cheaper now :)

[makinbuks] 07/2/2022 14:23

Possible reasons: valuation is for the portfolio reflecting a discount to the sum of the individual properties; properties are tenanted so not vacant posession values; retirement properties generally fall in value significantly from new build prices; joint ownership model makes property hard to value and the company doesn't have control over an individual sale

[panshanger1] 07/2/2022 12:51

Surprised that the NAV here hasn't made better progress given the general uplift in residential house prices over the last couple of years

[makinbuks] 07/2/2022 12:33

Surprised that Primary Bid say my application has been only partially fulfilled but don't quantify. No sign of the incoming shares in ii today either so far

[income investor] 04/2/2022 18:15

I agree dual purpose does give diversification, but also makes message more complex. Personally happy to hold and collect dividends, but doubt this will outperform like BBOX!

[makinbuks] 04/2/2022 10:42

Agreed, is the dual purpose of retirement properties and partial ownership schemes also an issue? I'm not sure if it diversifies or confuses

[income investor] 04/2/2022 10:31

I am not surprised. It has a small market cap, and the share price for years has been at a discount to NAV. It only recently crept above NAV and the discount was virtually nil. It has taken some years for the dividend to be fully covered and we had the first increase recently in the dividend. They need to build a better track record before tapping the market again in my view!

[makinbuks] 04/2/2022 09:02

That is indeed disappointing. To my comments yesterday, clearly a larger raise was out of the question and possibly this toe in the water was to gauge appetite. So why did it fail? Lack of institutional interest, pricing, bad timing in a volatile market, recent problems at Gresham (do people trust them as a manager?) or is there a problem perceived with the model? Any thoughts?

[income investor] 03/2/2022 18:25

Results of placing and retail offer announced today- £15m raised. Target was £20m, so not a great result!

[makinbuks] 02/2/2022 10:32

Ive applied to add 10% to my holding

[makinbuks] 02/2/2022 10:32

I like the fact that £20m gets invested quickly in assets worth nearly twice that so 50% gearing. Also encouraging that a further £145m of assets under discussion. Would liked to have seen them go for a higher raise and kept the costs down

[income investor] 02/2/2022 08:43

Placing and PrimaryBid offer at 108p to raise £20 m announced today - closes end of today! Virtually no discount- query wonder if they have placees lined up to raise the £20m??

[cwa1] 20/1/2022 17:01

A decent show of confidence:-