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.
