Secure Income REIT’s NAV dives 12%
Nick Leslau’s Secure Income REIT has posted a 12% decline in net asset value.
The REIT’s EPRA NTA fell to £1.23bn, with NTA per share at 379.3p at 31 December.
Losses were concentrated in the first half of the year, with its budget hotels accounting for two thirds of the decline.
Nick Leslau’s Secure Income REIT has posted a 12% decline in net asset value.
The REIT’s EPRA NTA fell to £1.23bn, with NTA per share at 379.3p at 31 December.
Losses were concentrated in the first half of the year, with its budget hotels accounting for two thirds of the decline.
During the year the overall portfolio valuation dropped by 6.5% to £1.95bn. Secure Income said 91% of the decline was reflected in the June 2020 valuations, with a “modest” 0.6% drop in the second half of the year.
Budget hotel valuations were down 69%, falling by 20.3% following Travelodge’s CVA, but remaining stable in the second half. Leisure asset valuations dropped by 6.9% and its healthcare asset valuations were up by 2.8%.
Martin Moore, non-executive chairman, said: “While we recognise the last 12 months have negatively impacted short-term returns for many investors, the performance of the business over the medium to longer term and its prospects over similar timescales remains the principal focus of the management team and board.
“As economies and businesses hopefully emerge from these difficult circumstances, we believe that as and when pandemic restrictions are relaxed the bounce back in economic activity in the leisure and hospitality sectors will be significant and SIR’s assets and tenants are well positioned to be early beneficiaries of any recovery.”
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