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.
