Avior Capital Markets - Resilient REIT Limited (1208) Resilient | Finding Normal

Report

Avior Capital Markets

Daniel King

Resilient | Finding Normal

Resilient (RES) reported HY'18 DPS of 306.46 cents (+13.4% y/y), in line with the trading statement and expectations. Despite the stellar update, the results were overshadowed by the immense share price pressure on Resilient and its associated companies due to a sustained period of speculation, culminating in the circulation of a research document prepared by an established South African hedge fund manager.In our view, an investigation by the responsible regulatory authority is necessary to bring finality to the allegation of improper trading activity. We do not test these allegations in this note. Nevertheless, we present our view on the risks associated with Siyakha's solvency, and the potential impact from consolidating Siyakha on the balance sheet and distributable income of Resilient.

20/02/2018 18 EN

Underlying

Resilient REIT Limited

Resilient Property Income Fund is engaged in property investment in South Africa. Co. operates through the following business segments: Corporate, Retail, Industrial and Commercial.

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ZAE000209557 Johannesburg Stock Exchange South Africa

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

Daniel King

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Resilient | Finding Normal

RESILIENT REIT LTD sees an upgrade to Positive due to a better fundamental star rating

1 director sold

Resilient | NEPI Rockcastle | Fortress REIT A new growth path

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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