Residential Secure Income (RESI) AI Stock Analysis

• Market Cap: £106.51M
• Dividend Yield: 7.15%
• Average Volume (3M): 244.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• 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: 226,472
• 30 Day Avg. Volume: 244,623
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £59.00
• Price Target Upside: 2.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: 59.00p ▲(2.43% Upside)

The overall stock score reflects significant financial challenges, particularly in revenue and profitability, despite some positive cash flow and debt management. Technical analysis shows mixed signals, and the high dividend yield offers some valuation appeal. However, the absence of earnings call insights and corporate events limits further assessment.

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.46M	30.46M	33.55M	31.79M	39.60M	32.20M
Gross Profit	30.46M	30.46M	-37.56M	15.67M	13.37M	32.20M
EBITDA	9.38M	9.38M	-87.17M	16.34M	9.70M	10.66M
Net Income	-10.05M	-10.05M	-23.15M	13.33M	11.22M	2.45M
Balance Sheet
Total Assets	369.32M	369.32M	389.43M	427.53M	389.71M	356.28M
Cash, Cash Equivalents and Short-Term Investments	11.09M	5.41M	3.22M	12.74M	5.69M	8.53M
Total Debt	161.85M	208.49M	213.34M	221.05M	199.55M	170.68M
Total Liabilities	218.32M	218.32M	220.75M	226.14M	207.32M	176.67M
Stockholders Equity	151.00M	151.00M	168.68M	201.39M	182.39M	179.61M
Cash Flow
Free Cash Flow	17.90M	17.90M	16.82M	43.29M	51.77M	39.07M
Operating Cash Flow	17.90M	17.90M	16.82M	14.13M	19.96M	3.05M
Investing Cash Flow	8.44M	8.44M	-7.07M	-28.93M	-32.61M	-36.77M
Financing Cash Flow	-24.05M	-24.05M	-16.93M	22.42M	9.80M	17.21M

Residential Secure Income Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 57.6 is above the 20-day moving average (MA) of 57.56, below the 50-day MA of 58.25, and above the 200-day MA of 55.71, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 49.50 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 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	614.06M	5.60	0.00%	3.85%	16.81%	89.02%
AIRE	70 Neutral	57.15M	11.18	0.00%	8.73%	4.10%	88.43%
SOHO	56 Neutral	274.64M	-6.17	0.00%	7.94%	-4.24%	-273.62%
RESI	54 Neutral	£106.51M	―	-6.65%	7.15%	―	―
KCR	35 Underperform	4.83M	-10.45	0.00%	―	3.67%	-11000.00%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Residential Secure Income Corporate Events

ReSI Reports Strong Q3 Performance Amidst Wind-Down Strategy

Residential Secure Income plc (ReSI) has announced its unaudited third-quarter net asset value and provided a corporate update amidst its managed wind-down strategy. The company reported strong operational performance with consistent rent collection and rental growth, and high occupancy rates in its retirement and shared ownership portfolios. The strategic focus includes the disposal of its sub-portfolios, with multiple offers received for the Shared Ownership portfolio and a formal sales process initiated for the Retirement Portfolio. Despite a slight decrease in property values, inflation-linked rent growth and strong earnings have contributed to a positive total return for the quarter. An interim dividend has been declared, reflecting the company’s ongoing commitment to shareholder returns during the realisation period.

ReSI Declares Interim Dividend Amid Managed Wind-Down Strategy

Residential Secure Income plc (ReSI) has declared an interim dividend of 1.03 pence per Ordinary Share, to be paid as a Property Income Distribution on 5 September 2025. This announcement comes as part of ReSI’s strategy to implement a managed wind-down, following a shareholder-approved objective to realize existing assets in an orderly manner. The company aims to balance maximizing returns for shareholders with protecting residents’ interests, while continuing to pay dividends quarterly under the REIT regime.

ReSI Satisfies Fund Management Fee with Equity Purchase

Residential Secure Income plc (ReSI) has announced the purchase of 124,810 Ordinary Shares to satisfy the equity portion of its fund management fee agreement with Gresham House Asset Management. This move aligns with ReSI’s strategic focus on realizing its existing assets in an orderly manner, while balancing shareholder returns and resident interests. The transaction underscores ReSI’s commitment to maintaining its investment objectives and operational stability, as it continues to navigate the affordable housing market in the UK.

Residential Secure Income Declares Interim Dividend Amid Wind-Down Strategy

Residential Secure Income plc has declared an interim dividend of 1.03 pence per Ordinary Share, to be paid as a Property Income Distribution in the financial year ending 30 September 2025. This announcement follows the company’s managed wind-down strategy, aiming to realize existing assets while balancing shareholder returns and resident interests. The company plans to continue paying dividends quarterly in line with the REIT regime.

ReSI Reports Strong Earnings Amid Challenging Market Conditions

ReSI announced its interim results for the six months ending March 2025, highlighting a 15% growth in adjusted earnings driven by rental income growth and cost management. Despite a challenging macroeconomic environment and a decline in property valuations due to elevated gilt yields, the company maintained strong operational performance with a 4% increase in like-for-like rent reviews and a 134% dividend coverage. The company has fully divested its local authority portfolio, repaid floating rate debt, and continues to see interest from potential purchasers for its retirement and shared ownership portfolios.