Secure Income REIT PLC - London-based real estate investment trust - Notes the approval of Travelodge's company voluntary arrangement by creditors, including Secure Income REIT. Final terms of the CVA have improved since the original proposal's publication. Minimum contracted rent has reduces by GBP14.4 million for 2020 and by GBP8.6 million for 2021. Travelodge will resume previously expected rent levels from the start of 2022. Fellow creditor LXI REIT PLC, also headquartered in London, said effect of the arrangement for the company is that rent payment due from the budget hotel chain for the March 2020 quarter will increase to 90% of the amount received to date or to be recieved under signed payment terms. For certain Travelodge leases where rent recovery is below 100% until 2021 will obtain lease extensions and Travelodge rents will revert to 100% across all assets from the end of 2021. LXI and other landlords are entitled to possible additional payment of 67% of additional earnings before interest, tax, depreciation, and amortisation above a hurdle rate of GBP200 million. LXI is also permitted to break some of its leases with Travelodge if it so chooses.
Current stock price: Secure Income REIT 285.00 pence, LXI 114.00p
Year-to-date change: Secure Income REIT down 34%, LXI down 18%
By Anna Farley; annafarley@alliancenews.com
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