Secure Income REIT
Posted: September 7th, 2019, 11:51 am
This REIT is one of my core holdings and I was pleased to hear the encouraging half year to June conference call for investors. Here are my notes/key points:
Optionality was a word used a number of times referring to the £230m warchest following the sale of the 8 least attractive Ramsey hospitals to a US REIT for £347m post period end.
This transaction was at 16% above a 9 week old valuation demonstrating successful capital recycling and the strength of demand for long lease properties with top end covenants.
Average unexpired leases now 21.5 years
Tenant requested regear at Chiswell Street from 12 to 37 years.
£70m of hotels sold for 25% valuation uplift.
Net LTV from 42% to 33%.
Boring assets creating exciting returns.
7% accounting return over the 6 months.
Covered dividend.
Strong management stake in the business c£200m
A number of options for the hospital net proceeds depending on opportunities or cahos in the months ahead. Could return to shareholders or special dividend.
I'll be topping up as with 59% of leases now linked to RPI for me this is a very solid income choice in UK real estate space given the characteristics of this REIT. Lots more in the slides and announcement at the URL below. Obviously do your own research but hope this is helpful.
Presentation and other information on their website
https://secureincomereit.co.uk/investor-centre/
Optionality was a word used a number of times referring to the £230m warchest following the sale of the 8 least attractive Ramsey hospitals to a US REIT for £347m post period end.
This transaction was at 16% above a 9 week old valuation demonstrating successful capital recycling and the strength of demand for long lease properties with top end covenants.
Average unexpired leases now 21.5 years
Tenant requested regear at Chiswell Street from 12 to 37 years.
£70m of hotels sold for 25% valuation uplift.
Net LTV from 42% to 33%.
Boring assets creating exciting returns.
7% accounting return over the 6 months.
Covered dividend.
Strong management stake in the business c£200m
A number of options for the hospital net proceeds depending on opportunities or cahos in the months ahead. Could return to shareholders or special dividend.
I'll be topping up as with 59% of leases now linked to RPI for me this is a very solid income choice in UK real estate space given the characteristics of this REIT. Lots more in the slides and announcement at the URL below. Obviously do your own research but hope this is helpful.
Presentation and other information on their website
https://secureincomereit.co.uk/investor-centre/