(Alliance News) - Secure Income REIT PLC on Thursday reported a drop in net assets as the leisure and hospitality property investor suffered from lockdown restrictions in the UK.
The real estate investor's EPRA net tangible asset per share ended 2020 at 379.3 pence, compared to 429.4p at the same point the year before.
The company's net assets slipped to GBP1.22 billion from GBP1.38 billion.
Net loan to value ratio rose to 36.4% from 31.9%.
Secure Income's annualised passing rent, before Covid-19 concessions, rose to GBP113.3 million from GBP110.7 million. The investor noted its rent collections have remained strong with only 0.3% of passing rents after concessions in arrears at December 31, all of which were collected after the year end.
The independent valuation of the firm's properties ended 2020 at GBP1.95 billion compared to GBP2.08 billion at the end of 2019.
Secure Income's total dividend slipped to 15.7p from 16.3p.
Chair Martin Moore said: "The Covid-19 pandemic has created significant challenges for our leisure and hospitality tenants, which has in turn had an impact on the company's results, particularly in the first half of the year.
"However, the many inherent strengths of the company, including its balance sheet, liquidity and management team, as well as the innately operational nature of our assets, means that the support we've been able to provide to occupiers should aid the resumption of their strong performance track record once the effects of the pandemic diminish. This in turn positions the company to regain its own growth trajectory."
Moore noted the last twelve months has been a negative, but believes the company's performance in the second half has set it up over the medium to longer term.
"As economies and businesses hopefully emerge from these difficult circumstances, we believe that as and when pandemic restrictions are relaxed the bounce back in economic activity in the leisure and hospitality sectors will be significant and SIR's assets and tenants are well positioned to be early beneficiaries of any recovery. After a challenging period we are excited about opportunities for the business," Moore added.
Shares in Secure Income REIT were 1.3% lower in London on Thursday at 349.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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