Residential Secure Income (RESI) AI Stock Analysis

• Market Cap: £108.73M
• Dividend Yield: 7.01%
• Average Volume (3M): 960.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• 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: 264,026
• 30 Day Avg. Volume: 960,846
• PEG Ratio: -0.83
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.59
• 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

• Rating: 61 Neutral
• Price Target: ―

The overall stock score reflects a company facing significant financial challenges, particularly in revenue generation and profitability. Despite these issues, positive market momentum and strong shareholder support provide a moderate offset. The high dividend yield could attract income-focused investors, though the lack of positive earnings remains a concern.

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

RESI makes money through a revenue model centered on acquiring and managing a diverse portfolio of residential properties that generate consistent rental income. Key revenue streams include rents collected from tenants residing in their properties, which may include individual renters, retirees, or shared ownership occupants. RESI's earnings are further augmented by capital appreciation of their property portfolio over time. The company may also engage in strategic partnerships with government bodies or non-profit organizations to enhance their service offerings and access potential subsidies or grants, contributing to their overall revenue.

Residential Secure Income Financial Statement Overview

Summary

The company faces significant financial challenges, with negative revenue growth and consistent net losses. Although there are improvements in cash flow and debt management, persistent negative income and declining equity remain significant concerns.

Income Statement

The income statement reveals substantial challenges, with negative revenue and consistent net losses in recent years. Revenue growth is negative, indicating declining performance, while net profit margins are also negative. The EBIT margin improved slightly in the latest period, but overall profitability remains weak.

Balance Sheet

The balance sheet shows a reasonable equity ratio and improving debt-to-equity ratio due to reduced total debt. However, the company's stockholders' equity has declined, and the return on equity is negative, highlighting ongoing profitability issues.

Cash Flow

The cash flow statement shows positive operating cash flow and free cash flow in the latest period, which is a positive sign. However, free cash flow growth is erratic, and the ratios of cash flow to net income indicate inconsistency in converting profits into cash.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	-8.23M	-20.70M	15.41M	13.53M	6.26M
Gross Profit	-8.23M	-37.56M	-701.00K	-12.70M	-14.88M
EBITDA	9.38M	-87.17M	0.00	0.00	0.00
Net Income	-10.05M	-23.15M	13.33M	11.22M	2.45M
Balance Sheet
Total Assets	369.32M	389.43M	427.53M	389.71M	356.28M
Cash, Cash Equivalents and Short-Term Investments	5.41M	3.22M	12.74M	5.69M	8.53M
Total Debt	0.00	213.34M	221.05M	199.55M	170.68M
Total Liabilities	218.32M	220.75M	226.14M	207.32M	176.67M
Stockholders Equity	151.00M	168.68M	201.39M	182.39M	179.61M
Cash Flow
Free Cash Flow	17.90M	16.82M	43.29M	51.77M	39.07M
Operating Cash Flow	17.90M	16.82M	14.13M	19.96M	3.05M
Investing Cash Flow	8.44M	-7.07M	-28.93M	-32.61M	-36.77M
Financing Cash Flow	-24.05M	-16.93M	22.42M	9.80M	17.21M

Residential Secure Income Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 58.8 is above the 20-day moving average (MA) of 58.53, above the 50-day MA of 56.54, and above the 200-day MA of 55.38, indicating a bullish trend. The MACD of 0.78 indicates Positive momentum. The RSI at 61.68 is Neutral, neither overbought nor oversold. The STOCH value of 37.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RESI.

Residential Secure Income Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRSR	76 Outperform	£585.50M	5.34	15.17%	4.13%	16.81%	89.02%
AIRE	70 Neutral	£59.57M	11.65	7.77%	8.38%	4.10%	88.43%
Sector *	63 Neutral	$6.98B	18.97	-1.16%	6.86%	4.65%	-25.28%
RESI	61 Neutral	£108.73M	―	-6.65%	7.01%	―	―
KCR	35 Underperform	£4.58M	―	-3.56%	―	3.67%	-11000.00%
HOME		£71.15M	―		―	―	―
SOHO	56 Neutral	£281.33M	9.16	-8.69%	7.88%	-1.66%	-204.76%

Residential Secure Income Corporate Events

ReSI Satisfies Fund Management Fee with Share Purchase

Residential Secure Income plc (ReSI) has announced the purchase of 135,822 Ordinary Shares to satisfy the equity portion of its fund management fee with Gresham House Asset Management. This move aligns with ReSI’s strategy to realize its assets in an orderly manner while protecting the interests of shareholders and residents. The shares are subject to a 12-month lock-in period, reflecting ReSI’s commitment to long-term investment stability. The announcement underscores ReSI’s focus on maximizing returns for shareholders while ensuring compliance with regulatory obligations and enhancing asset value.

Residential Secure Income plc Successfully Passes All AGM Resolutions

Residential Secure Income plc announced that all resolutions proposed at its Annual General Meeting on February 27, 2025, were successfully passed. The resolutions included the approval of the company’s annual report, re-election of directors, re-appointment of auditors, and authorization for directors to manage dividends and securities. The approval of these resolutions reflects strong shareholder support and positions the company to continue its strategic initiatives, potentially enhancing its market position and delivering value to stakeholders.

Residential Secure Income Announces Interim Dividend and Strategic Shift

Residential Secure Income plc has announced an interim dividend of 1.03 pence per Ordinary Share, to be paid as a Property Income Distribution on 21 March 2025. The company has recently adopted a new investment objective to orderly realize its assets, focusing on maximizing shareholder returns while protecting resident interests, indicating a strategic shift in its operations.

ReSI Reports Strong Operations Amid Valuation Decline; Advances Portfolio Wind-down

Residential Secure Income plc reported a strong operational performance with over 99% rent collection and 3.3% rental growth in the first quarter, despite a decline in property valuation due to rising government bond yields. The company announced a fully covered interim dividend and completed the sale of its local authority portfolio, with proceeds used to repay debt. As part of its strategic wind-down, ReSI continues to evaluate potential sales agents for remaining assets and is in discussions for a new credit facility, with shareholder support for its managed wind-down strategy.