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Secure Income REIT sells hospital portfolio for £347m

NAV up 7.6% at Secure Income REIT

Secure Income REIT sells hospital portfolio for £347m – Secure Income REIT has sold a portfolio of eight private hospitals for £347m.

The sale of the Ramsay Health Care-let assets to US specialist healthcare REIT Medical Properties Trust will reduce Secure Income REIT’s LTV to 33.5%.

The deal will increase EPRA NAV per share by an estimated 6.9 pence per share and increase the company’s uncommitted cash by over £170m to in excess of £200m on a pro forma basis.

The eight hospitals sold, which represent 31% of Ramsay hospitals owned by Secure Income REIT by value, are located in Ashtead, Berkshire Independent, Euxton Hall, Mount Stuart, North Downs, Renacres, Rowley and Winfield. The occupational leases have a current net rent payable of £16m a year.

The company said that while the disposal will temporarily reduce its EPRA EPS, with an estimated annualised reduction of 2.7 pence per share, the group intends to pay special quarterly dividends out of the net proceeds to restore the cash distributions to their pre-disposal levels until such time as the proceeds are redeployed.

Unconditional contracts for the sale of the eight subsidiary companies that hold the properties have been exchanged and completion is scheduled for 16 August 2019.

SIR : Secure Income REIT sells hospital portfolio for £347m

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