12th Mar 2020 10:21
(Alliance News) - Secure Income REIT PLC on Thursday raised its dividend for 2019 as net asset value increased over the year due to disposal gains and rental income growth.
At the end of December, the real estate investment trust reported net asset value of 428.8 pence per share, up 7.6% from the year before.
Secure Income attributed the net asset value growth to a higher contribution from disposals at GBP23.8 million from GBP200,000, and a 7.8% increase in rental income to GBP57.9 million.
This more than offset a decline in the trust portfolio by 12% to GBP2.08 billion. The portfolio at the end of 2019 comprised 161 properties with annual passing rent of GBP110.7 million, up 2.0%.
Secure Income declared a total dividend of 16.3 pence per share, up 17% from 13.9p in 2018.
"Stock market volatility has returned in recent days prompting a flight to safety that has driven bond yields around the world to historic lows. Safety has rarely, if ever, been as expensive in offering such low income returns which seem unlikely to match the level of inflation. In this environment we strongly believe in the attraction of the safe, inflation-linked long term income streams provided by Secure Income REIT, with its properties valued at a net initial yield of almost 5% driving secure and growing long term dividends," said Non-Executive Chair Martin Moore.
Shares in Secure Income REIT were down 8.0% at 382.00 pence on Thursday in London.
By Dayo Laniyan; [email protected]
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