6 Apr 2020 07:00
6 April 2020
Secure Income REIT Plc
(the "Company")
Covid-19 Update
The evolving impact of Covid-19 and the responses to it, including the UK wide 'lockdown', undoubtedly present challenges to a great many businesses across the globe. At this time of uncertainty, our priorities are to keep our team safe, maintain close relationships with our tenants and to ensure that the Company's financial position remains strong.
The Company confirms that of the rents due to date, representing over 94% of the total quarterly rent roll, 76% has been paid on time. The balance of the quarter's rent (either not yet due or due but remaining outstanding) is subject to active discussions to agree an appropriate level of temporary deferment in support of businesses that have had to suffer forced closure.
The Company's management team has had very long relationships with all of the Company's major tenants and, consistent with its aim to work in long term partnership with them, it wishes to be supportive of those affected businesses whilst protecting its own position and its responsibility to its shareholders. The Company's tenant roster is made up of well-known, long established businesses with excellent management teams and substantial owners, occupying key operating assets with high barriers to entry. While current conditions, including forced temporary closures of tenant premises, will require collaboration between all stakeholders to deal with the cash flow challenges resulting from the pandemic, those discussions are already underway where necessary.
Secure Income REIT Plc is in a strong financial position, with a net loan to value ratio at 31 December 2019 of 32% across its non-recourse debt structures and £234 million of uncommitted cash. Significant covenant headroom is maintained in all of the Group's debt facilities, as presented in detail on page 20 of the Company's preliminary results announcement of 12 March 2020, which is available on the Company's website.
The Company intends to announce its next quarterly dividend on 20th April and confirms its previous guidance that this will remain at 4.2 pence per share, consistent with the previous quarter's dividend. The Board will continue to keep its dividend policy under review as responses to the pandemic develop.
For further information on the Company, please contact:
Secure Income REIT Plc | +44 20 7647 7647 |
Nick Leslau Mike Brown Sandy Gumm
| enquiries@SecureIncomeREIT.co.uk |
Stifel Nicolaus Europe Limited (Nominated Adviser) |
+44 20 7710 7600 |
Stewart Wallace | stifelsecureincomereit@stifel.com |
FTI Consulting (PR Adviser) Dido Laurimore Claire Turvey Eve Kirmatzis |
+44 20 3727 1000 SecureIncomeREIT@fticonsulting.com |
About Secure Income REIT Plc:
Secure Income REIT specialises in generating long term, inflation protected, secure income from real estate investments. Its investment strategy is designed to satisfy investors' growing requirements for high quality, safe, inflation protected income flows.
At 31 December 2019, the Group's investment property portfolio was valued at £2.1 billion, producing £110.7 million per annum of rental income from long term leases with a weighted average unexpired term to expiry of 21.0 years with no breaks. All rental income is subject to fixed uplifts or RPI upwards only rent reviews with 59% of rental income subject to RPI-linked reviews and 41% having fixed uplifts.
The Group's portfolio comprises key operating assets let to strong businesses in defensive sectors with high barriers to entry. The upwards only RPI-linked rent reviews and fixed rental uplifts combine with fixed cost debt to drive healthy dividend growth, creating attractive and predictable returns.
The Company is advised by Prestbury Investment Partners Limited, owned by the team which advised Max Property Group Plc until August 2014, when all of the assets of Max Property Group Plc were sold to Blackstone Group. Prestbury is owned and run by a team of real estate and finance professionals including Nick Leslau, Mike Brown, Tim Evans, Ben Walford and Sandy Gumm.
The Company's Board is chaired by Martin Moore together with three further independent Directors: Leslie Ferrar, Jonathan Lane and Ian Marcus, as well as three members of the Prestbury Team: Nick Leslau, Mike Brown and Sandy Gumm.
The Company is a UK REIT which floated on the AIM market of the London Stock Exchange in June 2014.
The Company's LEI is 213800M1VI451RU17H40.
Further information on Secure Income REIT is available at www.SecureIncomeREIT.co.uk.