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To provide shareholders with an attractive level of income and capital growth from investing in residential asset classes that comprise the stock of registered UK social housing providers, Housing Associations and Local Authorities.
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Started: Florence141414, 18 Jun 2024 16:42
Last post: sotonspike, 19 Jun 2024 17:28
Have to agree with you Flo...Just topped up have an average of 49.54p am happy to take the dividends....I did hold CVS until they got brought out did make a tidy sum on that......What are the chances of RESI getting taken over?
This price just seems bonkers to me.
Now that you have an 8.1% rental increase for the shared ownership portfolio H2 cash flows will almost certainly improve vs H1. That is without potentially lower interest rates. So we are getting towards an 11-12% distributable earnings yield. You’d be hard pushed to find that in a retail unit REIT let alone one with such sticky occupancy as RESI. The portfolio valuation has dropped significantly but that has bottomed and could reverse unless interest rates start going up from here. So the huge discount to NAV seems unlikely to narrow from the top down.
The only thing I can think of to explain the current share price is that there is an intangible background legislative fear around shared ownership landlords. Otherwise this price looks a complete gift.
Started: tickhilltim, 5 Jun 2024 16:04
Last post: tickhilltim, 5 Jun 2024 16:04
Ahead of interims tomorrow ( or whenever?).
Started: Riscoff, 20 Feb 2024 18:18
Last post: tickhilltim, 4 Mar 2024 09:57
Still nervousness about the ability to complete on the local housing stuff….and the lost income.
Just looking at RESI first time, which looks set for v good income and/or gains, and wondering if I am missing anything?
- 1.2x covered divi of 4.12p >8% at todays price, which is not under pressure after rebase
- v good long term debt majority at 3.5% fixed with >19 years to go, most of the remainder already peaked at 1.1% +RPI capped at 5.5%, with >20 years to go
- Record demand, turning people away, nearly 100% occupancy and rent collection
- Rents increasing 9% this year
- Sticky tenants with demand not cyclical due to shared ownership & retirement units focus, unlike warehouse/retail/office
- Plan to remove the smaller FLR component of debt in early 24 by sale of social housing, under offer and already over 1/4 of units exchanged. Concerns over FLR if they are paramount seem overblown.
- Further margin improvement by reducing mtce costs and revised fees calc
- LTV still at 50% even with reduced NAV calculated Dec 23 and further mitigated by v. good loan terms
- Refurbs are organised to be accretive to income by justifying improved rents
In a year or two 50p could look cheap in the rear view mirror. Yet even with no SP increase the compounded dividends are nearly 50% gain in 5 years at todays price.
Is it just the smaller REIT size putting this under the investment radar or still recovering from a shock of temporary divi reduction?
Started: tickhilltim, 1 Feb 2024 14:47
Last post: CarpeDiem1, 1 Feb 2024 16:17
The company still has a high level of debt, which they are trying to address, but the dividend cut and interest rates 'higher for longer' means resi sp is under pressure despite rising rents.
This will turn around once they can pay off the floating rate debt and stabilise the dividend. Sub 50p is probably a good entry point and I will be reinvesting the dividend to average down.
Towards the end of last year they announced they were going to cut the dividend. Then yesterday they made the official dividend declaration, and some people apparently got the news of the dividend cut for the first time, so the share price fell. I think many people invest in this sort of share for a regular income, and if the dividend is cut they get cold feet and sell, regardless of the fundamentals.
The headwinds that eventually led to the dividend cut are old news now. Since then there's been some good news. At the same time they originally announced the dividend cut, they also announced that they'd agreed the sale of the last of the local authority housing (good) which will let them pay off the remaining variable rate debt (very good). I was still a bit concerned about whether the sale would go through. But yesterday they announced that they'd exchanged contracts on one sale and the rest were proceeding satisfactorily. I'm more optimistic now, so the fall in share price suited me. I took the opportunity to buy more shares.
Decent results today.Optimistic outlook.Share price dropped 20% in January.Somebody know something we don’t?
Started: Wigglyline, 11 Sep 2023 12:30
Last post: tichtich, 26 Sep 2023 17:31
Correction to one of my previous comments: RESI can't suspend the dividend. As a REIT they're obliged to pay out 90% of earnings.
Ive been in since initial £1 placement average 93 now.
I only bought recently, knowing the problems, and still think it's a reasonable bet at this price, for long term income. They just need to deal with the floating rate debt (which is only 10% of their total debt).
Thanks for that tich, might off load a few then and take a hit.
High interest rate on the 10% of debt which is floating rate. High energy costs (on heating communal areas). Currently only covering 86% of the dividend (if I remember the figure correctly). They are trying to sell some non-core assets (probably the local authority housing) to pay off the floating rate debt, but they probably can't get an acceptable price for it. If they don't manage it soon, I think they should suspend the dividend for a year or so to pay off that debt.
Started: SunBou, 23 May 2023 18:18
Last post: SunBou, 23 May 2023 18:18
Should RESI have reported half year results today?
Last post: CarpeDiem1, 24 Jan 2023 17:29
Director buy might indicate the low point reached. I hope so, I have increased my holding.
The fall may well be connected to the vicious short attack on HOME
Having just watched the webcast, I am mystified by the current SP, having dropped 22% over the last few months. The Company's business model (affordable residential property) seems bullet proof, even in a recession. The capped interest on borrowings together with index linked rent increases seems to guarantee that the dividend, currently yielding 5.75%, will be sure to increase every year.
I am thus very satisfied with this being my largest holding by value, as I expect 2023 will prove a very tough year for investors, especially the second half. Thereafter times might be very tough indeed for many months.
Started: MattTheBrave, 1 Sep 2022 09:57
Last post: Wigglyline, 23 Sep 2022 13:42
Definitely feeling a little nauseous now was going to sell some earlier in week.
Definitely feeling a little nauseous now was going to sell some earlier in week.
Altitude sickness @114
Most of the buying, and selling, has been A trades.
Looks like Motley Fool recommended it as one of their top picks in the UK market yesterday.
Started: TDinvestor, 1 Dec 2021 09:22
Last post: Wigglyline, 1 Dec 2021 09:32
Agreed! 5%+ return maybe 8% in the future. Don`t know why SP took off to 112 a few weeks ago though.
Look ok - good to me: NAV and divi increase. Bought in first thing this morning.
Started: Wigglyline, 27 May 2021 08:57
Last post: Wigglyline, 27 May 2021 08:57
Been invested since IPO all good!
Started: ms_moneypenny, 16 May 2018 21:36
Last post: ms_moneypenny, 16 May 2018 21:36
The dividend will be paid on or around 11 June 2018 to Shareholders on the register as at 18 May 2018. The ex-dividend date is 17 May 2018. The company has acquired a portfolio of 277 properties, comprised largely of modern two bedroom flats for a total consideration of approximately �31.2 million. The acquisition is due to complete on or before 30 May 2018, from when it will immediately be income producing. The Portfolio is concentrated in Southern England and comprises long-leasehold interests.
Started: Laughoutloud, 13 Jul 2017 09:28
Last post: BOTAK, 13 Jul 2017 16:46
Hi Laugh Any thoughts where this could go in short term ? prior to the 5% then 8% dive
So why would you apply for an IPO and then sell on opening, unless a premium was expected ? However at the moment a loss looks more likely.