23rd Jul 2019 10:08
(Alliance News) - Secure Income REIT PLC said Tuesday it has sold eight private hospitals for a gross consideration of GBP347 million to US healthcare REIT Medical Properties Trust.
The hospitals being sold come from Secure Income's portfolio of 19 private hospitals let to Ramsay Health Care Ltd. The eight hospitals represents 31% of the Ramsay hospitals owned by Secure Income.
The occupational leases have a current net rent payable of GBP16.0 million per annum.
The disposal will reduce Secure Income's net debt by about GBP316 million and will reduce the company's net loan to value ratio to 33.5% from 43.0% at the end of December.
The deal will also increase Secure Income's EPRA NAV per share by about 6.9%. The company reported NAV per share of 400.5 pence as at the end of December 2018.
"We believe that shareholders are best served by our active approach to portfolio management, recycling capital where it is prudent and advantageous to do so. This attractive offer, which represents a 19% premium above the December 2018 valuation, allows shareholders to realise some upside while still retaining a core holding of 11 high quality acute hospitals, worth GBP643 million at their December 31 valuations, let to Ramsay Health Care, one of the world's largest private healthcare companies," said Chair Martin Moore
Shares in Secure Income REIT were 1.3% higher in London on Tuesday at 406.30 pence each.
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