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Residential Secure Income

BATS-CHIXE:RESIL
Snowflake Description

Good value with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RESIL
BATS-CHIXE
£150M
Market Cap
  1. Home
  2. GB
  3. Real Estate
Company description

Residential Secure Income plc ("ReSI") is a real estate investment trust (REIT) listed on the premium segment of the Main Market of the London Stock Exchange with the objective of delivering secure inflation linked returns by investing in affordable shared ownership, retirement and Local Authority housing throughout the UK. The last earnings update was 119 days ago. More info.


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RESIL Share Price and Events
7 Day Returns
0%
BATS-CHIXE:RESIL
1.5%
GB REITs
1.7%
GB Market
1 Year Returns
-
BATS-CHIXE:RESIL
-17.9%
GB REITs
-21.8%
GB Market
RESIL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Residential Secure Income (RESIL) 0% -10.6% - - - -
GB REITs 1.5% -17.8% -25.7% -17.9% -18.5% -23.9%
GB Market 1.7% -12% -25.3% -21.8% -22.8% -22.4%
1 Year Return vs Industry and Market
  • No trading data on RESIL.
  • No trading data on RESIL.
Price Volatility
RESIL
Industry
5yr Volatility vs Market

Value

 Is Residential Secure Income undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Residential Secure Income to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Residential Secure Income.

BATS-CHIXE:RESIL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BATS-CHIXE:RESIL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.5
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.504 (1 + (1- 19%) (91.57%))
0.918
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (0.918 * 6.07%)
6.1%

Discounted Cash Flow Calculation for BATS-CHIXE:RESIL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Residential Secure Income is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BATS-CHIXE:RESIL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.1%)
2020 9.00 Analyst x1 8.48
2021 8.00 Analyst x1 7.11
2022 10.00 Analyst x1 8.37
2023 10.80 Est @ 8% 8.52
2024 11.42 Est @ 5.76% 8.49
2025 11.90 Est @ 4.19% 8.34
2026 12.27 Est @ 3.09% 8.10
2027 12.55 Est @ 2.32% 7.82
2028 12.78 Est @ 1.79% 7.50
2029 12.96 Est @ 1.41% 7.17
Present value of next 10 years cash flows £79.00
BATS-CHIXE:RESIL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £12.96 × (1 + 0.53%) ÷ (6.1% – 0.53%)
£233.73
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £233.73 ÷ (1 + 6.1%)10
£129.25
BATS-CHIXE:RESIL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £79.00 + £129.25
£208.25
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £208.25 / 171.02
£1.15
BATS-CHIXE:RESIL Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BATS-CHIXE:RESIL represents 0.94091x of LSE:RESI
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.94091x
Value per Share
(Listing Adjusted, GBP)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 1.15 x 0.94091
£1.08
Value per share (GBP) From above. £1.08
Current discount Discount to share price of £0.83
= -1 x (£0.83 - £1.08) / £1.08
23.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Residential Secure Income is available for.
Intrinsic value
23%
Share price is £0.83 vs Future cash flow value of £1.08
Current Discount Checks
For Residential Secure Income to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Residential Secure Income's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Residential Secure Income's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Residential Secure Income's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Residential Secure Income's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BATS-CHIXE:RESIL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in GBP £0.08
LSE:RESI Share Price ** LSE (2020-03-31) in GBP £0.88
United Kingdom of Great Britain and Northern Ireland REITs Industry PE Ratio Median Figure of 38 Publicly-Listed REITs Companies 12.92x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 748 Publicly-Listed Companies 13x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Residential Secure Income.

BATS-CHIXE:RESIL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:RESI Share Price ÷ EPS (both in GBP)

= 0.88 ÷ 0.08

11.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Residential Secure Income is good value based on earnings compared to the GB REITs industry average.
  • Residential Secure Income is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Residential Secure Income's expected growth come at a high price?
Raw Data
BATS-CHIXE:RESIL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
24.7%per year
United Kingdom of Great Britain and Northern Ireland REITs Industry PEG Ratio Median Figure of 22 Publicly-Listed REITs Companies 0.67x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 518 Publicly-Listed Companies 1.02x

*Line of best fit is calculated by linear regression .

BATS-CHIXE:RESIL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.39x ÷ 24.7%

0.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Residential Secure Income is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Residential Secure Income's assets?
Raw Data
BATS-CHIXE:RESIL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in GBP £1.09
LSE:RESI Share Price * LSE (2020-03-31) in GBP £0.88
United Kingdom of Great Britain and Northern Ireland REITs Industry PB Ratio Median Figure of 54 Publicly-Listed REITs Companies 0.79x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,323 Publicly-Listed Companies 1.13x
BATS-CHIXE:RESIL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:RESI Share Price ÷ Book Value per Share (both in GBP)

= 0.88 ÷ 1.09

0.81x

* Primary Listing of Residential Secure Income.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Residential Secure Income is overvalued based on assets compared to the GB REITs industry average.
X
Value checks
We assess Residential Secure Income's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Residential Secure Income has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Residential Secure Income expected to grow at an attractive rate?
  • Residential Secure Income's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Residential Secure Income's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Residential Secure Income's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
BATS-CHIXE:RESIL Future Growth Rates Data Sources
Data Point Source Value (per year)
BATS-CHIXE:RESIL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 24.7%
BATS-CHIXE:RESIL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 3.2%
United Kingdom of Great Britain and Northern Ireland REITs Industry Earnings Growth Rate Market Cap Weighted Average 26.3%
United Kingdom of Great Britain and Northern Ireland REITs Industry Revenue Growth Rate Market Cap Weighted Average 5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.6%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BATS-CHIXE:RESIL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BATS-CHIXE:RESIL Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 21 1
2022-09-30 18 10 19 2
2021-09-30 17 8 18 2
2020-09-30 14 9 7 2
2020-04-08
BATS-CHIXE:RESIL Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-09-30 22 7 13
2018-09-30 8 4 13
2017-07-11 0 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Residential Secure Income's earnings are expected to grow significantly at over 20% yearly.
  • Residential Secure Income's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BATS-CHIXE:RESIL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Residential Secure Income Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:RESIL Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30
2022-09-30 0.11 0.13 0.09 2.00
2021-09-30 0.11 0.11 0.10 2.00
2020-09-30 0.04 0.07 0.02 2.00
2020-04-08
BATS-CHIXE:RESIL Past Financials Data
Date (Data in GBP Millions) EPS *
2019-09-30 0.08
2018-09-30 0.07
2017-07-11

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Residential Secure Income is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Residential Secure Income's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Residential Secure Income has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Residential Secure Income's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Residential Secure Income's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Residential Secure Income's 1-year earnings growth to the 5-year average due to insufficient past data.
  • Residential Secure Income's earnings growth has exceeded the GB REITs industry average in the past year (2.7% vs -21.6%).
Earnings and Revenue History
Residential Secure Income's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Residential Secure Income Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:RESIL Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 21.62 13.24 1.02
2018-09-30 8.33 12.89 0.94
2017-07-11 -0.11 0.11

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Residential Secure Income has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Residential Secure Income used its assets more efficiently than the GB REITs industry average last year based on Return on Assets.
  • Unable to establish if Residential Secure Income improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Residential Secure Income's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Residential Secure Income has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Residential Secure Income's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Residential Secure Income's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Residential Secure Income is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Residential Secure Income's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Residential Secure Income's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Residential Secure Income Company Filings, last reported 6 months ago.

BATS-CHIXE:RESIL Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 185.71 108.28 26.21
2018-09-30 183.60 51.56 11.80
2017-07-11 -0.03 0.05
  • Residential Secure Income's level of debt (58.3%) compared to net worth is high (greater than 40%).
  • Unable to establish if Residential Secure Income's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (6%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Residential Secure Income's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Residential Secure Income has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.68%
Current annual income from Residential Secure Income dividends. Estimated to be 6.06% next year.
If you bought £2,000 of Residential Secure Income shares you are expected to receive £114 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Residential Secure Income's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.51%).
  • Residential Secure Income's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (6.87%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BATS-CHIXE:RESIL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland REITs Industry Average Dividend Yield Market Cap Weighted Average of 48 Stocks 5.1%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 588 Stocks 5.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.3%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.5%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 6.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BATS-CHIXE:RESIL Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-09-30 0.06 1.00
2022-09-30 0.05 2.00
2021-09-30 0.05 2.00
2020-09-30 0.05 2.00
2020-04-08
BATS-CHIXE:RESIL Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2020-01-31 0.050 5.549
2019-11-21 0.050 5.176
2019-08-01 0.050 5.434
2019-04-29 0.050 5.306
2019-01-30 0.050 5.448
2018-11-15 0.030 3.345
2018-08-14 0.030 3.197
2018-05-09 0.030 3.196
2018-02-08 0.030 3.235

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Residential Secure Income has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Residential Secure Income only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Residential Secure Income's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1x coverage).
X
Income/ dividend checks
We assess Residential Secure Income's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Residential Secure Income afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Residential Secure Income has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Residential Secure Income's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jon Slater
AGE 52
CEO Bio

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 Founding Shareholder at TradeRisks Limited February 2011. He joined TradeRisks from JP Morgan where he was Managing Director and Global Head of Structured Credit Trading. He served at JP Morgan from 1989 and also from 1997 at Tokai Bank Europe. He subsequently re-joined JP Morgan in 2000 where he spent the next 11 years developing and leading its Structured Credit Trading business. He is an experienced structured derivatives trader and has a wealth of experience on risk management, benchmarking and performance measurement. He has also been responsible for the design of front and middle-office securities and derivatives trading and risk management systems. Mr. Slater holds Mathematics First Class Honours Degree and Postgraduate year from St John's College, Cambridge.

CEO Compensation
  • Insufficient data for Jon to compare compensation growth.
  • Insufficient data for Jon to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

Jon Slater

TITLE
Chief Executive of ReSI Capital Management Limited
AGE
52

James Sly

TITLE
Finance Director of ReSI Capital Management Limited
TENURE
0.2 yrs

Ben Fry

TITLE
Managing Director of Investment - ReSi Capital Management Limited

Michael Woodman

TITLE
Legal Counsel & Company Secretary of ReSi Capital Management Limited

Galen Moore

TITLE
Chief of Staff of ReSI Capital Management Limited

Pete Redman

TITLE
Managing Director of Property - ReSi Capital Management Limited

Antoine Pesenti

TITLE
Chief Risk Officer of ReSi Capital Management Limited

Alejandro Pilato

TITLE
CEO of TradeRisks & Director of ReSI Capital Management Limited
AGE
62
Board of Directors Tenure

Average tenure and age of the Residential Secure Income board of directors in years:

2.1
Average Tenure
62
Average Age
  • The average tenure for the Residential Secure Income board of directors is less than 3 years, this suggests a new board.
Board of Directors

Rob Whiteman

TITLE
Non-Executive Chairman of ReSI Capital Management Limited
AGE
58
TENURE
2.1 yrs

Alejandro Pilato

TITLE
CEO of TradeRisks & Director of ReSI Capital Management Limited
AGE
62

David Orr

TITLE
Independent Non-Executive Chairman of ReSI Housing Limited
TENURE
1.5 yrs

Robert Gray

TITLE
Non-Executive Director of ReSI Capital Management Limited
AGE
67
TENURE
2.8 yrs

John Carleton

TITLE
Non-Executive Director of ReSI Capital Management Limited
AGE
64
TENURE
2.8 yrs

Mike Emmerich

TITLE
Non-Executive Director of ReSI Capital Management Limited
AGE
52
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Residential Secure Income individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
19. Mar 20 Buy James Sly Individual 18. Mar 20 18. Mar 20 2,500 £0.75 £1,870
19. Mar 20 Buy Ben Fry Individual 17. Mar 20 17. Mar 20 24,843 £0.75 £18,632
19. Mar 20 Buy Alejandro Pilato Individual 16. Mar 20 18. Mar 20 32,136 £0.79 £25,157
19. Mar 20 Buy Robert Gray Individual 18. Mar 20 18. Mar 20 33,552 £0.75 £25,130
02. Jul 19 Buy Resi Capital Management Ltd Company 01. Jul 19 01. Jul 19 123,664 £0.94 £116,244
X
Management checks
We assess Residential Secure Income's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Residential Secure Income has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Residential Secure Income plc ("ReSI") is a real estate investment trust (REIT) listed on the premium segment of the Main Market of the London Stock Exchange with the objective of delivering secure inflation linked returns by investing in affordable shared ownership, retirement and Local Authority housing throughout the UK. ReSI targets a secure, long-dated, inflation-linked dividend yield of 5.0% p.a. (paid quarterly) and a total return in excess of 8.0% p.a. and has to date committed c. £300 million, assembling a portfolio of 2,677 properties. ReSI aims to make a meaningful contribution to alleviating the UK housing shortage by meeting demand from housing developers (Housing Associations, Local Authorities and private developers) for long-term investment partners to accelerate the development of socially and economically beneficial new affordable housing.

Details
Name: Residential Secure Income plc
RESIL
Exchange: BATS-CHIXE
Founded: 2017
£150,497,290
171,019,648
Website: http://www.resi-reit.com
Address: Residential Secure Income plc
5 Old Bailey,
London,
Greater London, EC4M 7BA,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE RESI Ordinary Shares London Stock Exchange GB GBP 12. Jul 2017
BATS-CHIXE RESIL Ordinary Shares BATS 'Chi-X Europe' GB GBP 12. Jul 2017
Number of employees
Current staff
Staff numbers
0
Residential Secure Income employees.
Industry
Residential REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 23:38
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/04/01
Last earnings filing: 2019/12/11
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.