Alton Towers landlord Secure Income REIT has recorded increases in portfolio value and rental income, after extending its lease terms with Merlin Entertainments.
The value of its portfolio rose by 9.3% after exchange rate movements to £2.1bn, in the year ending December 2021.
Martin Moore, non-executive chairman of Secure Income, said the company’s WAULT was now the “longest among the major UK REITs”, standing at 30 years.
This comes after a major regearing of its leases at Alton Towers, Thorpe Park, Warwick Castle and Germany’s Heide Park to 55.5 years without break in December, in return for a £33.5m cash payment to Merlin Entertainment.
Like-for-like earnings increased by 10% following “expiry of all temporary rent reductions”, with the last of its Travelodge rent concessions ending. EPRA NTA per share was up by 11.8% to 424.1p.
Contracted annual passing rent across the group’s 160 properties grew to £116.8m, up from £113.3m.
Secure Income also refinanced its Merlin leisure facility this month, post year-end. It was previously due to mature in October this year. The refi comprises a new £282.5m credit facility, with the loan scheduled to be drawn at the end of April.
Net loan-to-value for the period fell to 33.8%, from 36.4% at the end of 2020.
“Our rents have not only resumed their pre-pandemic path, but future income expectations are now higher due to rising inflation,” said Moore.
“Since the year end the refinancing of our Merlin debt at a lower LTV and a lower cost is expected to help boost our targeted dividend by an estimated 15% by the summer.
“Notwithstanding the uncertainty caused by the awful humanitarian crisis and geo-political events in Ukraine, these elements combine to form a strong platform for the year ahead.”
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