Secure Income REIT reveals Covid impact in H1 results

Secure Income REIT has outlined the impact of Covid-19 on the business in its H1 results, stating the pandemic has created “very challenging conditions” for the company. The company’s EPRA NTA per share dropped by 10% to 386.4p from 429.4p and its like-for-like portfolio valuation was down 6% to £1.96bn from £2.08bn, with 79% of the net decline in property valuation attributable to the Travelodge CVA, the REIT said. As a result of the CVA, the REIT has forgone £14.4m of rent this year. It has also deferred £17.8m of rent to its leisure tenant Merlin Entertainments and a six-month rent-free period has been agreed with Stonegate in relation to its pubs portfolio, equating to £1.1m. Secure Income REIT chairman Martin Moore said: “There is no doubt that Covid-19 has created very challenging conditions for the company. While our key operating assets are in less cyclical sectors with high barriers to entry, the impact of the lockdown and sharply curtailed international travel has hit leisure and hotel businesses particularly hard across the globe.” He continued: “We have the balance sheet resilience to provide further support to our tenants should it become necessary and we remain in close dialogue with all of them while they gradually restore their businesses.” To send feedback, e-mail lucy.alderson@egi.co.uk or tweet @LucyAJourno or @estatesgazette