LONDON (Alliance News) - Secure Income REIT PLC Thursday reported a higher net asset value and portfolio valuation in the seven months since it listed on AIM, while its net loan to value ratio fell and it said it was mulling an early refinancing given interest rates remain at historic lows, meaning it could be in a position to start dividend payments earlier than planned.
The real estate investment trust, which invests for long-term income, said its EPRA net asset value per share had risen by half since it listed on June 5 to 258.5 pence from 172.0 pence. Its net asset value stands at GBP344.3 million, up from GBP121.0 million.
Its portfolio valuation is up 11.6% over the period to GBP1.63 billion, representing a net initial yield of 5.4% and an equivalent yield of 7.0%.
The weighted average unexpired lease term within its portfolio is 25.1years, with 57% of passing rent subject to annual fixed uplifts and 43% of passing rent subject to RPI linked upwards only rent reviews. Half of the passing rent is guaranteed by Merlin Entertainments PLC and 48% by Australian private hospital group Ramsay Healthcare Ltd.
Secure Income also repoted that its net loan to value ration had dropped to 70%, from 80% at listing, providing it with gearing in what it described as a strong investment market.
"Since listing we have continued to see growing demand for assets with high quality, long term income streams in alternative property sectors and this momentum, coupled with our strategy of being geared into market recovery, has led to the exceptional maiden annual results we are able to report today," Chairman Martin Moore said.
The trust is also looking at refinancing to take advantage of low interest rates, a move it thinks could allow it to start dividend payments ahead of its previous guidance.
"With interest rates at historic lows, it makes sense for us to investigate whether an early refinancing of the portfolio would be in shareholders' best interests. This would present an opportunity to lock into lower interest rates for a longer period, but at the cost of breaking our interest rate swaps which otherwise expire in 2017 when the associated debt matures," it said.
"An early refinancing should bring forward the date we could commence paying a dividend ahead of our previous indication of 2017. We will report further to shareholders if our investigations lead us to conclude that an early refinancing is in the best interests of shareholders," it added.
Secure Income REIT shares were down 0.1% at 281.36 pence Thursday morning, having risen 29% since it listed.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.