| Item | 2015 result (£) | % rise |
|---|---|---|
| NAV | 504.4m | 47 |
| EPRA NAV per share | 282p | 9.4 |
| Asset sales | 384m | 8 |
| Portfolio value | 1.35bn | 6.4 |
Secure Income REIT has posted a 47% NAV increase to £504.4m for the year ended 31 December 2015.
EPRA NAV per share jumped by 9.4% to 282.8p after the firm incurred early debt repayment costs of 16% of EPRA NAV at 31 December 2014.
Asset sales totalled £384m, 8% above last year, These included the sales of Madame Tussauds, NW1, for £322m and New Hall hospital in Salisbury for £50m.
The firm valued its portfolio at £1.35bn, a yield of 5.3%, up by 6.4% from last year and posted a loan-to-value ratio of 61%, down from 70% last year.
The portfolio comprises 26 fully occupied assets that are subject to annual rental uplifts with a weighted average unexpired lease term of over 23 years.
The company has also announced a proposed secondary placing of a minimum of 77,514,511 ordinary shares, representing 43% of the issued share capital of the group.
Chairman Martin Moore said: “Since listing in June 2014 we have completed a number of significant initiatives to advance our aim of creating a REIT that pays a progressive dividend to shareholders derived from income generated by high-quality real estate assets let on long leases and offering inflation protection.
“These initiatives have comprised two asset sales, including Madame Tussauds London, for more than £380m in aggregate, allowing us to reduce the company’s levels of debt, as well as a debt refinancing of more than £900m to reduce finance costs and significantly extend the term of debt expiry, which was the final catalyst for the introduction of a dividend.
“Today’s announcement of the proposed placing marks the start of the next phase of Secure Income REIT’s evolution – that of expansion.
“By reconfiguring and widening the company’s shareholder base, which will still include a fully aligned manager in Prestbury, we provide ourselves with the flexibility and institutional support to seek and execute significant portfolio or asset acquisition opportunities that match the board’s ambitious plans for growth.”
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