Secure Income REIT (SIR) provided the following update:
“The evolving impact of covid-19 and the responses to it, including the UK wide ‘lockdown’, undoubtedly present challenges to a great many businesses across the globe. At this time of uncertainty, our priorities are to keep our team safe, maintain close relationships with our tenants and to ensure that the company’s financial position remains strong.
The company confirms that of the rents due to date, representing over 94% of the total quarterly rent roll, 76% has been paid on time. The balance of the quarter’s rent (either not yet due or due but remaining outstanding) is subject to active discussions to agree an appropriate level of temporary deferment in support of businesses that have had to suffer forced closure.
The company’s management team has had very long relationships with all of the company’s major tenants and, consistent with its aim to work in long term partnership with them, it wishes to be supportive of those affected businesses whilst protecting its own position and its responsibility to its shareholders. The company’s tenant roster is made up of well-known, long established businesses with excellent management teams and substantial owners, occupying key operating assets with high barriers to entry. While current conditions, including forced temporary closures of tenant premises, will require collaboration between all stakeholders to deal with the cash flow challenges resulting from the pandemic, those discussions are already underway where necessary.
Secure Income REIT Plc is in a strong financial position, with a net loan to value ratio at 31 December 2019 of 32% across its non-recourse debt structures and £234 million of uncommitted cash. Significant covenant headroom is maintained in all of the group’s debt facilities, as presented in detail on page 20 of the company’s preliminary results announcement of 12 March 2020, which is available on the company’s website.
The company intends to announce its next quarterly dividend on 20th April and confirms its previous guidance that this will remain at 4.2 pence per share, consistent with the previous quarter’s dividend. The board will continue to keep its dividend policy under review as responses to the pandemic develop.”
SIR: Update from Secure Income REIT