Secure Income REIT PLC Edison initiates coverage of Secure Income REIT

TIDMSIR

Secure Income REIT PLC

19 September 2016

London, UK, 19 September 2016

Edison initiates coverage of Secure Income REIT (SIR)

Secure Income REIT (Secure) targets predictable cash flows from a broad range of real estate assets, which offer very long leases (average unexpired lease term more than 23 years) subject to annual fixed or RPI linked rent uplifts, to high-quality tenants providing strong covenants. The external manager has a strong track record, with interests strongly aligned to other shareholders. The prospects for medium-term dividend growth are very strong, while NAV should also grow at unchanged yields. The starting valuation seems modest compared with similar defensive sector peers.

Long leases, upward-only rent increases, and predictable administration and finance costs provide a high degree of medium-term visibility. Consensus expectations of medium-term RPI of c 3% imply 6.5% pa DPS growth to 2022 and, on an unchanged valuation yield, c 11% pa EPRA NAV total return.

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September 19, 2016 06:04 ET (10:04 GMT)