Secure Income REIT has reported a 30% return to shareholders in its annual results for 2016.
It said its total portfolio value was up 7% to £1.6bn, while passing annual rent was £92.6m, with an average unexpired lease term of 23.1 years with no breaks.
The net blended yield for the portfolio is 5.3%.
Secure Income REIT results at a glance
| 2016 | 2015 | % Change | |
|---|---|---|---|
| EPRA NAV | 745.9 | 510.1 | 46.2% |
| EPRA NAV per share | 323.6 | 282.8 | 14.4% |
| Adjusted EPRA EPS | 11.3 | 2.6 | 334.6% |
| Portfolio valuation | 1641.7 | 1349.5 | 21.7% |
| Total shareholder return | 30% | – | – |
The REIT specialises in secure long term income.
Martin Moore, non-executive chairman, was upbeat about the reliability of tenants in the portfolio.
He said: “The majority of our tenants are global businesses and all have strong balance sheets and very long lease commitments, offering investors an opportunity to access a very attractive cash flow which should carry on its upwards trajectory regardless of the outcome of Brexit or other developments unfolding on the world’s stage.
“These rentals will continue to rise either in line with RPI or annual fixed uplifts irrespective of whether the economy is expanding or contracting. This degree of predictability is both welcome and increasingly valued by investors.”
The total portfolio consists of 81 properties. Around 58% of the group’s rental income is subject to annual fixed rental uplifts averaging 2.8% each year, while the remaining leases are subject to uncapped, upwards only RPI-linked uplifts.
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