Secure Income REIT PLC Quarterly dividend declaration & dividend guidance (8096T)

TIDMSIR

RNS Number : 8096T

Secure Income REIT PLC

23 July 2020

23 July 2020

Secure Income REIT Plc (AIM:SIR)

(the "Company")

Quarterly dividend declaration and dividend guidance

The Board of Secure Income REIT Plc, the specialist long term income REIT, today declares an interim quarterly dividend of 3.65 pence per share in respect of the year ending 31 December 2020. This represents a 3.5% increase in the Company's core dividend (3.525 pence per share last quarter and defined as total dividend excluding the topped up income from the sold hospitals portfolio as announced on 23 July 2019). The dividend 'top-up' introduced in July 2019 to replace the net income reduction from the Company's profitable sale of a portfolio of eight hospitals (the top-up being 0.675 pence per share last quarter) will be discontinued.

At 30 June 2020, the Company had a total cash balance of GBP241 million and this liquidity buffer has allowed it to provide support to its tenants without compromising the strength of its balance sheet. The various measures the Company has taken to assist those tenants whose businesses were closed during the Covid-19 lockdown have been previously announced and, as a result of these measures, the Company's cash rent receipts will be temporarily reduced in the 2020 and 2021 financial years. Under the terms of the rent concessions that have been agreed, the Company's total rents are expected to return to their originally contracted levels by 1 January 2022 (1) . While the level of support extended to tenants means that maintenance of the core dividend results in its partial funding from the Company's cash reserves, the Board considers maintaining payment of core dividends to be appropriate in the current circumstances.

While the release of much of the UK from lockdown has provided some welcome clarity for the business and operations of our tenants, levels of uncertainty around the path of the virus and of any general economic recovery remain elevated. The Board will continue to keep dividend payments under review, giving due regard to the financial stability of the business and balanced with providing an appropriate return to the Company's shareholders.

Neither the Company nor Prestbury, the Investment Adviser, has utilised or is utilising any of the employee or fiscal assistance schemes provided by the UK Government to ease the burden of the pandemic.

Dividends will be payable on 28 August 2020 to shareholders on the register on 31 July 2020 and the ex-dividend date will be 30 July 2020. The dividend will be paid as a Property Income Distribution in respect of the Company's tax-exempt property rental business.

1 Subject to there being no successful challenge to the Travelodge CVA which results in the failure of the CVA

For further information on the Company, please contact:

 
 Secure Income REIT Plc                        [phone] 
 Nick Leslau                   [e-mail] 
 Mike Brown 
 Sandy Gumm 
 
 
 
 Stifel Nicolaus Europe 
  Limited 
  (Nominated Adviser)                          [phone] 
 Stewart Wallace              [e-mail] 
 
 
 
 
 FTI Consulting 
  (PR Adviser)                                 [phone] 
  Dido Laurimore             [e-mail] 
  Claire Turvey 
  Eve Kirmatzis 
 
 

The Company's LEI is 213800M1VI451RU17H40.

Further information on Secure Income REIT plc is available at www.SecureIncomeREIT.co.uk .

Dividend withholding tax deductions

Shareholders entitled to elect to receive distributions without deduction for withholding tax should complete the declaration form which is available in the Investor Centre of the Company's website, www.SecureIncomeREIT.co.uk or by request to [e-mail] or by writing to the Company Secretary, Secure Income REIT Plc, Cavendish House, 18 Cavendish Square, London W1G 0PJ. Shareholders who qualify for gross payments are, principally, UK resident companies, certain UK public bodies, UK charities, UK pension schemes and the managers of ISAs, PEPs and Child Trust Funds, in each case subject to certain conditions. Individuals and non-UK residents do not qualify for gross payments of distributions and should not complete the declaration form.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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July 23, 2020 02:00 ET (06:00 GMT)