Residential Secure Income (RESI) AI Stock Analysis

• Market Cap: £105.40M
• Dividend Yield: 6.96%
• Average Volume (3M): 247.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): N/A
• Shares Outstanding: 184,909,600
• 10 Day Avg. Volume: 317,350
• 30 Day Avg. Volume: 247,341
• PEG Ratio: 1.20
• Price to Book (P/B): 0.79
• Price to Sales (P/S): -15.64
• P/FCF Ratio: 7.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: 54.00p ▼(-6.90% Downside)

The score is weighed down primarily by deteriorating profitability and unstable revenue trends, alongside weak technical momentum with the stock trading below key moving averages. Positive free cash flow and a high dividend yield provide support, but balance-sheet clarity is limited by the sharp reported shift to zero debt in 2025.

Positive Factors

Cash-generation resilience

Consistent positive operating and free cash flow across periods provides durable internal funding for maintenance, dividends and working capital. This cash-generation ability cushions the business against earnings volatility and supports strategic flexibility over the next several months.

Equity cushion versus assets

A sizable equity base relative to assets offers a structural capital buffer that reduces insolvency risk and supports borrowing capacity. For a residential REIT this enhances resilience to rent or valuation shocks and underpins long-term operational stability.

Reported de-leveraging

The shift to reported zero total debt represents a potential structural reduction in leverage, which, if sustained, materially lowers interest burden and financial risk. De-leveraging can improve cash available for operations and strategic investments over the medium term.

Negative Factors

Profitability deterioration

A transition from multi-year profitability to sustained operating losses materially weakens earnings quality and dividend coverage. Persistent losses erode equity, limit reinvestment capacity and signal structural issues in portfolio performance or cost control that could persist absent corrective actions.

Volatile, declining revenue

Highly volatile and negative top-line trends reduce predictability of cashflows for a REIT reliant on rental income. Structural revenue weakness complicates long-term planning, weakens coverage metrics and may reflect underlying demand or portfolio occupancy issues that hurt sustainable returns.

Balance-sheet clarity risk

An abrupt shift in reported leverage after years of elevated debt (debt-to-equity ~1.1–1.4) raises governance and transparency concerns. Unclear drivers—asset sales, reclassification or one-offs—impair assessment of solvency and financing flexibility, a structural risk to stakeholders.

Residential Secure Income Business Overview & Revenue Model

Company Description

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 in July 2017, raising £180 million in its IPO.

How the Company Makes Money

Residential Secure Income generates revenue primarily through rental income from its portfolio of residential properties. The company leases its properties to tenants, receiving monthly rent payments, which constitute its main revenue stream. Additionally, RESI may benefit from capital appreciation of its properties, leading to potential gains when properties are sold. The company also maintains partnerships with local authorities and housing associations, which can provide opportunities for government-backed rental agreements and funding for property development, further enhancing its revenue potential. Moreover, by focusing on affordable housing, RESI positions itself in a segment with steady demand, which contributes to its overall earnings stability.

Residential Secure Income Financial Statement Overview

Summary

Financials are mixed. The biggest drag is the income statement: profitability deteriorated from profits (2020–2022) to sizable losses (2023–2025) with volatile/negative revenue. Offsetting this, operating cash flow and free cash flow stayed positive across all periods, while the balance sheet is a watch item due to historically elevated leverage and an abrupt shift to zero reported debt in 2025 that warrants confirmation.

Income Statement

Profitability and consistency have deteriorated meaningfully. After being profitable in 2020–2022, the company swung to sizable losses in 2023 and 2024, and the latest 2025 annual period shows negative revenue and a deep operating loss, which raises questions around earnings quality and/or one-off impacts. Revenue growth has also been highly volatile and negative in recent periods, indicating an unstable top-line trajectory.

Balance Sheet

The balance sheet shows a mixed risk profile. Equity remains sizable relative to the asset base, but leverage was elevated in prior years with debt running above equity (debt-to-equity roughly ~1.1–1.4 from 2021–2024). A notable positive is that total debt is reported as zero in the latest 2025 annual period; however, the sharp year-over-year shift suggests potential structure changes or reporting/portfolio events, so balance-sheet stability is less clear than it appears from one period alone.

Cash Flow

Cash generation looks comparatively resilient: operating cash flow and free cash flow are positive across all shown periods, including 2025, which helps offset weak reported earnings. That said, free cash flow growth has turned negative in 2023 and 2025, indicating weakening momentum, and the divergence between positive cash flow and recent net losses suggests results may be influenced by non-cash items or timing effects.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.95M	-6.82M	30.46M	33.55M	31.79M	39.60M
Gross Profit	29.95M	-6.82M	17.57M	16.70M	15.67M	13.37M
EBITDA	27.73M	0.00	9.38M	-87.17M	16.34M	9.70M
Net Income	-6.06M	-9.13M	-10.05M	-23.15M	13.33M	11.22M
Balance Sheet
Total Assets	338.70M	333.63M	369.32M	389.43M	427.53M	389.71M
Cash, Cash Equivalents and Short-Term Investments	5.60M	7.56M	5.41M	3.22M	12.74M	5.69M
Total Debt	156.16M	0.00	208.49M	213.34M	221.05M	199.55M
Total Liabilities	197.95M	199.39M	218.32M	220.75M	226.14M	207.32M
Stockholders Equity	140.76M	134.24M	151.00M	168.68M	201.39M	182.39M
Cash Flow
Free Cash Flow	17.62M	14.22M	17.90M	16.82M	43.29M	51.77M
Operating Cash Flow	17.62M	14.22M	17.90M	16.82M	14.13M	19.96M
Investing Cash Flow	24.05M	20.56M	8.44M	-7.07M	-28.93M	-32.61M
Financing Cash Flow	-39.21M	-32.56M	-24.05M	-16.93M	22.42M	9.80M

Residential Secure Income Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RESI, the sentiment is Negative. The current price of 58 is above the 20-day moving average (MA) of 56.06, above the 50-day MA of 56.24, and above the 200-day MA of 56.20, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 43.95 is Neutral, neither overbought nor oversold. The STOCH value of 23.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RESI.

Residential Secure Income Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRI	67 Neutral	£1.45B	7.17	10.30%	3.62%	-8.66%	553.35%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ESP	64 Neutral	£530.69M	18.24	3.72%	5.02%	4.90%	-50.68%
SOHO	61 Neutral	£301.79M	-6.78	-10.89%	8.16%	-4.24%	-273.62%
PSDL	51 Neutral	£156.80M	―	―	―	―	―
RESI	48 Neutral	£105.40M	―	―	6.96%	―	―

Residential Secure Income Corporate Events

ReSI posts resilient earnings but lower valuations as wind-down progresses

Residential Secure Income has reported full-year results to 30 September 2025 showing solid operational performance but weaker asset valuations amid continued market headwinds and an approved managed wind-down. Like-for-like rent growth of 3.4%, record 97% retirement occupancy, rent collection above 99% and an 11% rise in adjusted earnings per share to 5.7p delivered strong dividend cover of 137%, yet portfolio valuations fell 6.2% to £287.4m and EPRA NTA per share dropped to 63.3p, as yields moved out by 50 basis points and IFRS NAV declined 11.1%. Following shareholder approval in December 2024 for an orderly realisation of assets, ReSI has completed the sale of its local authority portfolio ahead of book value, with its shared ownership and retirement portfolios both under offer and in exclusivity after a competitive sales process, as the board seeks to maximise returns for shareholders while maintaining protections for residents and managing the wind-down of the business.

The most recent analyst rating on (GB:RESI) stock is a Hold with a £60.00 price target. To see the full list of analyst forecasts on Residential Secure Income stock, see the GB:RESI Stock Forecast page.

Residential Secure Income Declares Interim Dividend Amid Managed Wind-Down

Residential Secure Income plc has declared an interim dividend of 1.03 pence per ordinary share, to be paid as a full Property Income Distribution from its tax-exempt property rental business on 27 February 2026 to shareholders on the register as at 6 February 2026. The company, which is now implementing a managed wind-down strategy, reiterated its intention to continue paying quarterly dividends under the REIT regime, signalling an ongoing focus on delivering income to investors while it orderly realises its affordable housing assets and seeks to balance maximising returns with safeguarding residents’ interests.

The most recent analyst rating on (GB:RESI) stock is a Hold with a £60.00 price target. To see the full list of analyst forecasts on Residential Secure Income stock, see the GB:RESI Stock Forecast page.

Residential Secure Income Buys Shares to Settle Equity Portion of Management Fee

Residential Secure Income plc has acquired 125,694 of its own ordinary shares in the secondary market at an average price of 60 pence to satisfy the equity portion of the fund management fee payable to Gresham House Asset Management under its existing management agreement, with these shares subject to a minimum 12‑month lock‑in from 1 January 2026. The move reflects the REIT’s ongoing fee structure that partly aligns management compensation with shareholder equity at a time when the company is executing an orderly realisation of its affordable housing portfolio, aiming to maximise shareholder returns while maintaining protections and stability for residents.

The most recent analyst rating on (GB:RESI) stock is a Hold with a £58.00 price target. To see the full list of analyst forecasts on Residential Secure Income stock, see the GB:RESI Stock Forecast page.