LSE:RESI

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Residential Secure Income

Executive Summary

Residential Secure Income plc (“ReSI”) is a real estate investment trust (REIT) with the objective of delivering secure income returns by investing in Shared Ownership and other affordable residential asset classes.


Snowflake Analysis

Moderate growth potential and slightly overvalued.

Share Price & News

How has Residential Secure Income's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RESI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

RESI

-0.9%

GB REITs

-0.8%

GB Market


1 Year Return

-2.2%

RESI

-16.1%

GB REITs

-15.4%

GB Market

Return vs Industry: RESI exceeded the UK REITs industry which returned -16.1% over the past year.

Return vs Market: RESI exceeded the UK Market which returned -15.4% over the past year.


Shareholder returns

RESIIndustryMarket
7 Day1.7%-0.9%-0.8%
30 Day-1.1%-3.0%-3.4%
90 Day2.5%-4.8%5.6%
1 Year3.1%-2.2%-13.3%-16.1%-11.4%-15.4%
3 Year2.2%-8.6%-4.7%-16.2%-4.5%-16.3%
5 Yearn/a-7.1%-23.9%12.7%-12.4%

Price Volatility Vs. Market

How volatile is Residential Secure Income's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Residential Secure Income undervalued compared to its fair value and its price relative to the market?

10.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RESI (£0.92) is trading below our estimate of fair value (£1.03)

Significantly Below Fair Value: RESI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RESI is poor value based on its PE Ratio (21.4x) compared to the GB REITs industry average (15.5x).

PE vs Market: RESI is poor value based on its PE Ratio (21.4x) compared to the UK market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: RESI is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: RESI is overvalued based on its PB Ratio (0.9x) compared to the GB REITs industry average (0.7x).


Next Steps

Future Growth

How is Residential Secure Income forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

47.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RESI's forecast earnings growth (47.3% per year) is above the savings rate (1.2%).

Earnings vs Market: RESI's earnings (47.3% per year) are forecast to grow faster than the UK market (21.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RESI's revenue is expected to decline over the next 3 years (-7.1% per year).

High Growth Revenue: RESI's revenue is forecast to decline over the next 3 years (-7.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RESI's Return on Equity is forecast to be low in 3 years time (3.8%).


Next Steps

Past Performance

How has Residential Secure Income performed over the past 5 years?

-44.0%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: RESI has a large one-off gain of £2.4M impacting its March 31 2020 financial results.

Growing Profit Margin: RESI's current net profit margins (25.8%) are lower than last year (87.1%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if RESI's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: RESI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RESI had negative earnings growth (-44%) over the past year, making it difficult to compare to the REITs industry average (-9%).


Return on Equity

High ROE: RESI's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is Residential Secure Income's financial position?


Financial Position Analysis

Short Term Liabilities: RESI's short term assets (£18.9M) exceed its short term liabilities (£6.2M).

Long Term Liabilities: RESI's short term assets (£18.9M) do not cover its long term liabilities (£136.4M).


Debt to Equity History and Analysis

Debt Level: RESI's debt to equity ratio (59.1%) is considered high.

Reducing Debt: Insufficient data to determine if RESI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RESI's debt is not well covered by operating cash flow (7%).

Interest Coverage: RESI's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

What is Residential Secure Income current dividend yield, its reliability and sustainability?

5.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RESI's dividend (5.46%) is higher than the bottom 25% of dividend payers in the UK market (1.96%).

High Dividend: RESI's dividend (5.46%) is low compared to the top 25% of dividend payers in the UK market (5.5%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RESI has been paying a dividend for less than 10 years.

Growing Dividend: RESI's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (113.3%), RESI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RESI's dividends in 3 years are forecast to be covered by earnings (95.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average board tenure


CEO

Jon Slater (53yo)

no data

Tenure

Mr. Jonathan David Slater, also known as Jon, serves as Chief Executive of ReSI Capital Management Limited, Manager of Residential Secure Income plc. Mr. Slater has been the Joint Chief Executive and Found ...


Board Members

NamePositionTenureCompensationOwnership
Alejandro Pilato
CEO of TradeRisks & Director of ReSI Capital Management Limitedno datano data0.73% £1.1m
Robert Gray
Independent Non-Executive Director of ReSI Capital Management Limited3.08yrsno data0.063% £99.3k
Robert Whiteman
Independent Non-Executive Chairman of ReSI Capital Management Limited2.33yrsno data0.0029% £4.6k
Elaine Bailey
Independent Non Executive Director0.25yrno datano data
John Carleton
Independent Non-Executive Director of ReSI Capital Management Limited3.08yrsno data0.0028% £4.4k
David Orr
Independent Non-Executive Chairman of ReSI Housing Limited1.75yrsno datano data

2.3yrs

Average Tenure

64yo

Average Age

Experienced Board: RESI's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Residential Secure Income plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Residential Secure Income plc
  • Ticker: RESI
  • Exchange: LSE
  • Founded: 2017
  • Industry: Residential REITs
  • Sector: Real Estate
  • Market Cap: UK£156.483m
  • Shares outstanding: 171.02m
  • Website: https://www.resi-reit.com

Location

  • Residential Secure Income plc
  • 5 Old Bailey
  • London
  • Greater London
  • EC4M 7BA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RESILSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2017
RESILBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2017

Biography

Residential Secure Income plc (“ReSI”) is a real estate investment trust (REIT) with the objective of delivering secure income returns by investing in Shared Ownership and other affordable residential asset classes. ReSI is listed on the premium segment of the Official List of the UK Listing Authority and was admitted to trading on the main market of the London Stock Exchange. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 21:03
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.