Our opinion on the current state of RESILIENT(RES)The Resilient group of companies (Resilient, Lighthouse - previously Greenbay, Rockcastle, and Fortress) used to be the high-flyers of the property sector until the beginning of 2018 when a damning report was produced by 360ne Asset Management. The report claimed that the high prices enjoyed by the shares of these four real estate investment trusts (REITs) were primarily a result of their incestuous cross-shareholdings.
This caused the price of Resilient (and the other members of the group) to plummet to R51.50 by the 3rd of April 2018. After the report, it was wallowing between R50 and R70 until COVID-19 took it down to between R30 and R45. A lengthy investigation by the Financial Sector Conduct Authority (FSCA) finally showed on 8th November 2019 that there had been no insider trading or share manipulation, and the share has recovered some of what it lost.
In its results for the year to 31st December 2024, the company reported retail sales in South Africa up 3,5% and a total dividend up 8,4% for the year. The company said, "The Group's offshore investments contributed to the growth in distributable earnings. The euro distribution per share from Lighthouse Properties p.l.c. ("Lighthouse") declined by 4,9% compared to FY2023, however, Resilient benefitted from its forward exchange contracts that resulted in the Rand equivalent distribution per share increasing by 4,1%."
Technically, the share moved downwards until the end of October 2023. Since then, it has been moving up. We believe it will continue to rise. The company is considering delisting from the JSE.
RES trade ideas
Our opinion on the current state of RESILIENT(RES)The Resilient group of companies (Resilient, Lighthouse - previously Greenbay, Rockcastle, and Fortress) used to be the high-flyers of the property sector until the beginning of 2018 when a damning report was produced by 360ne Asset Management. The report claimed that the high prices enjoyed by the shares of these four real estate investment trusts (REITs) were primarily a result of their incestuous cross-shareholdings. This caused the price of Resilient (and the other members of the group) to plummet to R51.50 by the 3rd of April 2018.
After the report, Resilient's share price was wallowing between R50 and R70 until COVID-19 took it down to between R30 and R45. A lengthy investigation by the Financial Sector Conduct Authority (FSCA) finally showed on 8th November 2019 that there had been no insider trading or share manipulation, and the share has recovered some of what it lost.
In its results for the six months to 30th June 2024, the company reported retail sales in South Africa up 2.9% and average rental escalations of 6.2%. The company said, "The benefit of the continuous operation of solar installations and a saving of R11.1 million in diesel costs supported the growth in net property income (“NPI”). Despite the acceleration of planned maintenance, the South African NPI increased by 5.9%."
Technically, the share moved downwards until the end of October 2023. Since then, it has been moving up. We believe it will continue to rise. The company is considering delisting from the JSE.
Our opinion on the current state of RESILIENT(RES)The Resilient group of companies (Resilient, Lighthouse - previously Greenbay, Rockcastle, and Fortress) used to be the high-flyers of the property sector until the beginning of 2018 when a damning report was produced by 360ne Asset Management. The report claimed that the high prices enjoyed by the shares of these four real estate investment trusts (REIT) were primarily a result of their incestuous cross-shareholdings. This caused the price of Resilient (and the other members of the group) to plummet to R51.50 by the 3rd of April 2018. After the report, it was wallowing between R50 and R70 until COVID-19 took it down to between R30 and R45.
A lengthy investigation by the Financial Sector Conduct Authority (FSCA) finally showed on 8th November 2019 that there had been no insider trading or share manipulation, and the share has recovered some of what it lost. In its results for the year to 31st December 2023, the company reported a loan-to-value (LTV) of 35,2%. The company said, "The South African property portfolio recorded comparable net property income (“NOI”) growth of 7,1% for the year. In 1H2023, the French portfolio was negatively affected by a number of tenant failures and receiverships. Resilient and Lighthouse each own a 50% interest in the holding company of Salera Properties. Salera is fully let to 147 major international and national tenants. The current annual footfall is 9 million, which is 8,7% above 2019 levels."
In a pre-close update for the six months to 30th June 2024, the company reported that in South Africa, "During the interim period, Resilient concluded 369 lease renewals over 143 550m2 of GLA at rentals on average 4,9% higher than expiry. Leases were concluded with 79 new tenants (16 800m2 of GLA) at rentals on average 36,3% higher than those of the outgoing tenants. Escalations of 5,9% and 6,2% were agreed for renewals and new leases respectively."
Technically, the share moved downwards until the end of October 2023. Since then, it has been moving up. We believe it will continue to rise. The company is considering delisting from the JSE.
Our opinion on the current state of RESThe Resilient group of companies (Resilient, Lighthouse - previously Greenbay, Rockcastle, and Fortress) were once considered the high-flyers of the property sector until the beginning of 2018 when a damning report by 360ne Asset Management shook investor confidence. The report alleged that the high share prices of these four real estate investment trusts (REITs) were primarily a result of their interconnected cross-shareholdings. Consequently, the price of Resilient (and the other group members) plummeted to R51.50 by the 3rd of April 2018. Following the report, the share price fluctuated between R50 and R70 until COVID-19 exacerbated the decline, pushing it down to the range of R30 to R45.
A lengthy investigation by the Financial Sector Conduct Authority (FSCA) finally concluded on 8th November 2019, revealing no evidence of insider trading or share manipulation. As a result, the share price began to recover some of its losses. In its results for the year ending 31st December 2023, the company reported a loan-to-value (LTV) ratio of 35.2%. The South African property portfolio recorded comparable net property income ("NOI") growth of 7.1% for the year. However, the French portfolio was negatively impacted by tenant failures and receiverships during the first half of 2023.
Resilient and Lighthouse each own a 50% interest in the holding company of Salera Properties, which is fully let to 147 major international and national tenants. The current annual footfall is reported to be 9 million, representing an 8.7% increase compared to 2019 levels.
From a technical standpoint, the share has been on a downward trajectory since the beginning of 2022. Considering the challenges and potential benefits, the company is contemplating delisting from the JSE as part of its strategic considerations.
Our opinion on the current state of RESThe Resilient group of companies (Resilient, Lighthouse - previously Greenbay, Rockcastle and Fortress) used to be the high-flyers of the property sector until the beginning of 2018 when a damning report was produced by 360ne Asset Management. The report claimed that the high prices enjoyed by the shares of these four real estate investment trusts (REIT) was primarily a result of their incestuous cross-shareholdings. This caused the price of Resilient (and the other members of the group) to plummet to R51.50 by the 3rd of April 2018. After the report it was wallowing between R50 and R70 until COVID-19 took it down to between R30 and R45. A lengthy investigation by the Financial Sector Conduct Authority (FSCA) finally showed on 8th November 2019 that there had been no insider trading or share manipulation and the share has recovered some of what it lost. In its results for the six months to 30th June 2023 the company reported revenue up 8,9% and headline earnings per share (HEPS) up 22,4%. The company's net asset value (NAV) increased slightly to 5995c per share. The company said, "Resilient continues to emphasise keeping malls and tenants open for trade through periods of loadshedding. Growth in comparable sales has improved from the 2,9% reported for the four months to April". In a pre-close update for the ten months to 31st October 2023 the company reported foot traffic up 4,9% and vacancies of 1,5%. The company said, "Strong trading performances were achieved in the Northern Cape, Limpopo and Mpumalanga provinces. The growth in KwaZulu-Natal was limited (0,7%) due to the high base in the previous comparable period. Growth in the North West province (1,8%) was impacted by construction activities at Mahikeng Mall as well as ongoing road works in front of the mall". Technically, the share has been moving downwards since the beginning of 2022. The company is considering delisting from the JSE.
Our opinion on the current state of RESThe Resilient group of companies (Resilient, Lighthouse - previously Greenbay, Rockcastle and Fortress) used to be the high-flyers of the property sector until the beginning of 2018 when a damning report was produced by 360ne Asset Management. The report claimed that the high prices enjoyed by the shares of these four real estate investment trusts (REIT) was primarily a result of their incestuous cross-shareholdings. This caused the price of Resilient (and the other members of the group) to plummet to R51.50 by the 3rd of April 2018. After the report it was wallowing between R50 and R70 until COVID-19 took it down to between R30 and R45. A lengthy investigation by the Financial Sector Conduct Authority (FSCA) finally showed on 8th November 2019 that there had been no insider trading or share manipulation and the share has recovered some of what it lost. In its results for the six months to 30th June 2023 the company reported revenue up 8,9% and headline earnings per share (HEPS) up 22,4%. The company's net asset value (NAV) increased slightly to 5995c per share. The company said, "Resilient continues to emphasise keeping malls and tenants open for trade through periods of loadshedding. Growth in comparable sales has improved from the 2,9% reported for the four months to April". In a pre-close update for the ten months to 31st October 2023 the company reported foot traffic up 4,9% and vacancies of 1,5%. The company said, "Strong trading performances were achieved in the Northern Cape, Limpopo and Mpumalanga provinces. The growth in KwaZulu-Natal was limited (0,7%) due to the high base in the previous comparable period. Growth in the North West province (1,8%) was impacted by construction activities at Mahikeng Mall as well as ongoing road works in front of the mall". Technically, the share has been moving downwards since the beginning of 2022. The company is considering delisting from the JSE.
Resilient REITEquities | Resilient REIT – following a 22-month consolidation base, the share is looking to break the horizontal overhead resistance zone of R70 per share. Supporting the bullish technical setup are the higher lows which has been in place since April 2019 as well as the rising 50-day simple moving average and gradually rising 200 -day simple moving average. Using a measured moved, a break and close above the overhead resistance of R70 would result in a target price of approximately 8641c.
Resilient REIT Equities | RES Resilient REIT
A longer term view. RES trying to break to the upside of a 22-month base consolidation.
Resistance currently around the 7000c level, with higher lows having been developed.
Price > 50-day & 200-day MA's, both of which are turning higher.
In the words of Louise Yamada: "the bigger the base, the higher the space"
Resilient (RES) - Building A BaseResilient (RES): Has formed a 12-month base in the form of an inverse H&S. Price trend is starting to turn positive (above 50&200d). Price is supported by trend line going back to Aug 2018 and the green shaded area is where one could start to accumulate. Inverse H&S will be triggered above 6750c where one could add into strength. The price has recently moved back above the 200-day and may consolidated above this level for a short while, with each pullback potentially an opportunity to add to the share. Provisionally, my stop-loss would be R53.90 with a first target of R79.
JSE:RES