AIM:SIR

Stock Analysis Report

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Executive Summary

Secure Income REIT Plc ("SIR") is a specialist UK REIT, investing in real estate assets that provide long term rental income with inflation protection. More Details


Snowflake Analysis

Average dividend payer 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 is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SIR's weekly volatility has decreased from 9% to 3% over the past year.


Market Performance


7 Day Return

9.3%

SIR

-0.08%

GB REITs

1.2%

GB Market


1 Year Return

-19.8%

SIR

-39.6%

GB REITs

4.6%

GB Market

Return vs Industry: SIR exceeded the UK REITs industry which returned -39.6% over the past year.

Return vs Market: SIR underperformed the UK Market which returned 4.6% over the past year.


Shareholder returns

SIRIndustryMarket
7 Day9.3%-0.08%1.2%
30 Day14.0%1.0%0.7%
90 Day18.6%1.9%2.6%
1 Year-15.2%-19.8%-7.7%-39.6%10.6%4.6%
3 Year8.7%-4.7%-2.2%-3.7%8.6%-4.5%
5 Year64.7%34.7%7.2%1.6%39.5%12.6%

Long-Term 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

Valuation

Is Secure Income REIT undervalued compared to its fair value and its price relative to the market?

49.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIR (£3.54) is trading below our estimate of fair value (£7.06)

Significantly Below Fair Value: SIR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SIR is unprofitable, so we can't compare its PE Ratio to the GB REITs industry average.

PE vs Market: SIR is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SIR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SIR's PB Ratio (0.9x) is in line with the GB REITs industry average.


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?

114.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SIR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SIR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SIR's revenue (10.8% per year) is forecast to grow faster than the UK market (6.6% per year).

High Growth Revenue: SIR's revenue (10.8% per year) is forecast to grow slower than 20% 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?

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIR is currently unprofitable.

Growing Profit Margin: SIR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SIR is unprofitable, but has reduced losses over the past 5 years at a rate of 15.6% per year.

Accelerating Growth: Unable to compare SIR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SIR is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-0.1%).


Return on Equity

High ROE: SIR has a negative Return on Equity (-2.9%), as it is currently unprofitable.


Next Steps

Financial Health

How is Secure Income REIT's financial position?


Financial Position Analysis

Short Term Liabilities: SIR's short term assets (£251.1M) exceed its short term liabilities (£35.7M).

Long Term Liabilities: SIR's short term assets (£251.1M) do not cover its long term liabilities (£961.1M).


Debt to Equity History and Analysis

Debt Level: SIR's debt to equity ratio (74.4%) is considered high.

Reducing Debt: SIR's debt to equity ratio has reduced from 254.9% to 74.4% over the past 5 years.

Debt Coverage: SIR's debt is not well covered by operating cash flow (8.5%).

Interest Coverage: SIR is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Secure Income REIT current dividend yield, its reliability and sustainability?

4.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SIR's dividend (4.75%) is higher than the bottom 25% of dividend payers in the UK market (1.49%).

High Dividend: SIR's dividend (4.75%) is in the top 25% of dividend payers in the UK market (4.51%)


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.7%), SIR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SIR's dividends in 3 years are forecast to be covered by earnings (90.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average board tenure


CEO

Mike Brown (59 yo)

no data

Tenure

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

NamePositionTenureCompensationOwnership
Phillip Brown
CEO & Directorno datano data0.37%
£ 4.2m
Sandy Gumm
Company Secretary & Non-Executive Director14.17yrsno data0.059%
£ 680.7k
Nicholas Leslau
Non-Executive Director14.17yrsno data0.018%
£ 203.2k
Martin Moore
Independent Non-Executive Chairman6.83yrsUK£75.00k0.039%
£ 449.7k
Jonathan Lane
Independent Non-Executive Director6.83yrsUK£40.00k0.018%
£ 203.2k
Ian Marcus
Senior Independent Directorno dataUK£40.00k0.030%
£ 338.9k
Leslie Ferrar
Independent Non-Executive Director6.83yrsUK£45.00k0.0081%
£ 92.9k

6.8yrs

Average Tenure

61yo

Average Age

Experienced Board: SIR's board of directors are considered experienced (6.8 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 not been meaningfully diluted in the past year.


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£1.145b
  • Shares outstanding: 324.04m
  • Website: https://www.SecureIncomeREIT.co.uk

Location

  • Secure Income REIT Plc
  • Cavendish House
  • 18 Cavendish Square
  • London
  • East Lothian
  • W1G 0PJ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SIRAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2014

Biography

Secure Income REIT Plc ("SIR") is a specialist UK REIT, investing in real estate assets that provide long term rental income with inflation protection. The Company owns a £1.96 billion portfolio at the 30 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 20:13
End of Day Share Price2021/03/05 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.