16 Mar 2018 15:41
16 March 2018
Secure Income REIT Plc (AIM: SIR)
(the "Company")
Issue of Shares in connection with pre-existing arrangements
As disclosed in the Company's annual results announcement issued on 9 March 2018, the Company has an obligation to issue shares to the Company's Investment Adviser under arrangements entered into at the time of the Company's listing in June 2014. This follows the Company reporting total accounting return and total shareholder return for the 2017 financial year of approximately 19%. Consequently, the Company will issue 4,588,479 new ordinary shares of 10 pence each ("Shares") to Prestbury Incentives Limited.
Full details of the calculation of the fee entitlement are disclosed in the Company's annual results announcement. Following the issue of the Shares, Prestbury Incentives will have a total shareholding in the Company of 17,771,890 ordinary shares, representing 5.5% of the Company's voting rights. The Shares received by Prestbury Incentives will not be permitted to be disposed for a minimum of 18 months and up to 42 months from 31 March 2018, save under certain limited circumstances including a sale of shares if required to fund payment of the tax liability arising on receipt of the fee. It is not currently intended that shares will be sold to meet the tax liability arising.
Application has been made for the 4,588,479 Shares to be admitted to trading on AIM and admission is expected to be effective at 8.00 a.m. on or around 20 March 2018.
Following the allotment of the Shares and the completion of the Placing announced on 9 March 2018, and in accordance with the Disclosure Guidance and Transparency Rules, the Company's issued voting ordinary share capital will comprise 321,563,353 ordinary shares. There are no Shares held in treasury. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the ordinary share capital of the Company under the Disclosure and Transparency Rules.
The Company's LEI is: 213800M1VI451RU17H40
For further information on the Company, please contact:
Secure Income REIT Plc | +44 20 7647 7647 |
Sandy Gumm | enquiries@SecureIncomeREIT.co.uk
|
Stifel Nicolaus Europe Limited (Nominated Adviser & Broker) | +44 20 7710 7600 stifelsecureincomereit@stifel.com |
Mark Young David Arch | |
Tom Yeadon
| |
Newgate (PR Adviser) | +44 20 7680 6550 |
James Benjamin | sir@newgatecomms.com |
Anna Geffert | |
Leena Patel |
About Secure Income REIT
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 2017, the Company's investment property portfolio was valued at £1.77 billion, producing £95.7 million per annum of rental income from long term leases with a weighted average unexpired term to expiry of over 22 years. All rental income is subject to fixed or RPI upwards only rent reviews.
On 9 March 2018, the Company exchanged contracts to acquire two off-market portfolios at a total consideration of £436 million. The acquisitions include Manchester Arena, the UK's largest indoor entertainment arena, 76 Travelodge hotels and the largest catered event space in the City of London at the Chiswell St Brewery. The two portfolios offer an attractive net initial yield of 6% and an average unexpired lease term of over 20 years with 86% of the income offering RPI protection plus a further 13% with fixed uplifts.
To finance the acquisitions, the Company successfully raised gross proceeds of £315.5 million in a significantly oversubscribed Placing of 86,438,000 Ordinary Shares, completing the Placing over a week earlier than planned following strong investor demand, alongside an associated new £128.7 million debt financing at c. 30% loan to cost.
The Company is advised by Prestbury Investments LLP which was adviser to Max Property Group plc until August 2014, when all of the assets of Max Property Group plc were sold to Blackstone Group. Prestbury Investments LLP is a partnership 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 and also comprises three further independent Directors in Leslie Ferrar, Jonathan Lane and Ian Marcus, as well as three members of the Prestbury Team in 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.
Further information on Secure Income REIT is available at: www.SecureIncomeREIT.co.uk