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.
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.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.