(Alliance News) - Secure Income REIT on Wednesday lifted its dividend for a half-year in which its net asset value rose.
Pro-forma EPRA net asset value at June 30, not including the effects of the disposal of eight hospitals, rose by 5.0% from December to 420.50 pence per share from 400.50 pence per share. On a non-pro-forma basis, net asset value per share stood at 415.90p.
The real estate investment trust reported that net assets rose 3.8% to GBP1.33 billion from 1.28 billion and on a pro-forma basis by 4.9% to GBP1.34 billion.
Gross rental income rose by 23% to GBP68.2 million from GBP55.5 million.
Secure Income lifted its interim dividend by 32% to 7.9 pence per share from 6.0p.
In July the company sold sold eight private hospitals for a gross consideration of GBP347.0 million to US healthcare REIT Medical Properties Trust. The hospitals being sold come from Secure Income's portfolio of 19 private hospitals let to Ramsay Health Care Ltd.
Aside from healthcare facilities, Secure Income also has Merlin Entertainments PLC leisure spaces and Travelodge Hotels Ltd properties in its portfolio.
Looking ahead, Secure Income said it expects Brexit-related uncertainty to persist but continued sterling weakness could attract overseas capital. The trust cited the hospital disposals as an example of this.
Non-Executive Chair Martin Moore said: "With political uncertainty reaching a crescendo in the UK and recession fears spreading across the world, bond yields have plummeted as investors seek safety. The recent sale of GBP347.0 million of our non-core hospitals at a price 16% above valuation demonstrates the strong attraction of well-let alternative property and provides the company with over GBP230.0 million to redeploy as and when opportunities arise.
"With a robust balance sheet and a strongly performing portfolio delivering 5% NAV growth in the first half of the year, we continue to view the future with confidence."
Shares in the company were 0.9% higher at 434.74p each in London on Wednesday morning.