Secure Income REIT
Market Cap
UK£1.5b
Last Updated
2020/02/25 22:26 UTC
Data Sources
Company Financials +
Executive Summary
Secure Income REIT Plc is a specialist UK REIT, investing in real estate assets that provide long term rental income with inflation protection.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -13% per year for the next 3 years
Snowflake Analysis
Proven track record and slightly overvalued.
Similar Companies
Share Price & News
How has Secure Income REIT's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SIR has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.7%
SIR
-3.0%
GB REITs
-4.4%
GB Market
1 Year Return
14.6%
SIR
9.4%
GB REITs
1.4%
GB Market
Return vs Industry: SIR exceeded the UK REITs industry which returned 9.4% over the past year.
Return vs Market: SIR exceeded the UK Market which returned 1.4% over the past year.
Shareholder returns
| SIR | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | -3.0% | -4.4% |
| 30 Day | -1.1% | -2.9% | -6.3% |
| 90 Day | 8.6% | 0.7% | -2.7% |
| 1 Year | 19.1%14.6% | 14.2%9.4% | 6.7%1.4% |
| 3 Year | 56.1%39.2% | 23.9%6.5% | 12.6%-1.5% |
| 5 Year | 87.3%62.0% | 23.8%-0.8% | 28.8%-0.7% |
Price Volatility Vs. Market
How volatile is Secure Income REIT's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
What Kind Of Shareholders Own Secure Income REIT Plc (LON:SIR)?6 months ago | Simply Wall St
Secure Income REIT Plc (LON:SIR) Looks Like A Good Stock, And It's Going Ex-Dividend Soon7 months ago | Simply Wall St
What Should We Expect From Secure Income REIT Plc's (LON:SIR) Earnings Over The Next Few Years?Valuation
Is Secure Income REIT undervalued compared to its fair value and its price relative to the market?
9.34x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SIR (£4.56) is trading above our estimate of fair value (£2.44)
Significantly Below Fair Value: SIR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SIR is good value based on its PE Ratio (9.3x) compared to the REITs industry average (15.2x).
PE vs Market: SIR is good value based on its PE Ratio (9.3x) compared to the UK market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: SIR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SIR is overvalued based on its PB Ratio (1.1x) compared to the GB REITs industry average (1x).
Next Steps
Future Growth
How is Secure Income REIT forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
-13.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SIR's earnings are forecast to decline over the next 3 years (-13% per year).
Earnings vs Market: SIR's earnings are forecast to decline over the next 3 years (-13% per year).
High Growth Earnings: SIR's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SIR's revenue is expected to decline over the next 3 years (-3.9% per year).
High Growth Revenue: SIR's revenue is forecast to decline over the next 3 years (-3.9% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if SIR's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Secure Income REIT performed over the past 5 years?
2.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SIR has a large one-off gain of £99.0M impacting its June 30 2019 financial results.
Growing Profit Margin: SIR's current net profit margins are higher than last year .
Past Earnings Growth Analysis
Earnings Trend: SIR's earnings have grown by 2.6% per year over the past 5 years.
Accelerating Growth: SIR's earnings growth over the past year (37%) exceeds its 5-year average (2.6% per year).
Earnings vs Industry: SIR earnings growth over the past year (37%) exceeded the REITs industry -20.8%.
Return on Equity
High ROE: SIR's Return on Equity (11.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Secure Income REIT's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: SIR has a high level of physical assets or inventory.
Debt Coverage by Assets: SIR's debt is not covered by short term assets (assets are 0.1x debt).
Financial Institutions Analysis
Asset Level: SIR's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if SIR has a sufficient allowance for bad loans.
Low Risk Liabilities: SIR reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if SIR has an acceptable proportion of non-loan assets held.
Low Risk Deposits: SIR has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if SIR has an appropriate level of bad loans.
Next Steps
Dividend
What is Secure Income REIT's current dividend yield, its reliability and sustainability?
3.45%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SIR's dividend (3.45%) is higher than the bottom 25% of dividend payers in the UK market (1.9%).
High Dividend: SIR's dividend (3.45%) is low compared to the top 25% of dividend payers in the UK market (5.34%).
Stability and Growth of Payments
Stable Dividend: SIR has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: SIR's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (45.4%), SIR's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SIR's dividends in 3 years are not forecast to be well covered by earnings (117.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average board tenure
CEO
Mike Brown (58yo)
Mr. Phillip Michael Brown, also known as Mike, B.Sc. (Land Man), MRICS is a Partner and Chief Executive Officer at Prestbury Investments LLP. Mr. Brown has been with Prestbury Investments since June 2009. ...
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0yrs | no data | 0.37% £5.4m | |
| Company Secretary & Non-Executive Director | 13.1yrs | no data | 0.060% £878.2k | |
| Non-Executive Director | 13.1yrs | no data | 0.018% £262.1k | |
| Non-Executive Chairman | 5.8yrs | UK£75.00k | 0.037% £539.7k | |
| Independent Non-Executive Director | 5.8yrs | UK£40.00k | 0.018% £262.1k | |
| Senior Independent Director | 0yrs | UK£40.00k | 0.027% £396.8k | |
| Independent Non-Executive Director | 5.8yrs | UK£45.00k | 0.0070% £103.6k |
5.8yrs
Average Tenure
60yo
Average Age
Experienced Board: SIR's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 26%.
Top Shareholders
Company Information
Secure Income REIT Plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Secure Income REIT Plc
- Ticker: SIR
- Exchange: AIM
- Founded: 2007
- Industry: Diversified REITs
- Sector: Real Estate
- Market Cap: UK£1.472b
- Shares outstanding: 322.85m
- Website: https://www.SecureIncomeREIT.co.uk
Location
- Secure Income REIT Plc
- Cavendish House
- 18 Cavendish Square
- London
- East Lothian
- W1G 0PJ
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SIR | AIM (London Stock Exchange AIM Market) | Yes | Ordinary Shares | GB | GBP | Jun 2014 |
Biography
Secure Income REIT Plc is a specialist UK REIT, investing in real estate assets that provide long term rental income with inflation protection. The Company owns a £2.05 billion portfolio at the 30 June 2019 external valuation (adjusted for the sale of eight hospitals in July 2019) of 164 high quality assets let to financially strong businesses in defensive sectors on leases with a c. 21.5 year weighted average unexpired term. 59% of the Group's rental income is subject to upwards only RPI-linked reviews and 41% to fixed uplifts. The Company has a highly experienced board, chaired by Martin Moore, and is advised by Prestbury Investments LLP. Prestbury is owned and managed by Nick Leslau, Mike Brown, Tim Evans, Sandy Gumm and Ben Walford, a team with a long-standing and successful track record in real estate investments and asset management and, with an investment worth c. £190 million in the Company, very close alignment with the interests of shareholders. An investment in the Company offers a secure, growing income stream, strong foundations for sustainable capital growth and the prospect of attractive risk adjusted returns for shareholders over the long term. The Company is a UK REIT which floated on the AIM market of the London Stock Exchange in June 2014. The Company's LEI is 213800M1VI451RU17H40.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/25 22:26 |
| End of Day Share Price | 2020/02/25 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.