Secure Income REIT : Issue of Shares under pre-existing arrangements

RNS Number : 5819B

Secure Income REIT PLC

04 April 2017

4 April 2017

Secure Income REIT Plc

(the "Company")

Issue of Shares in connection with pre-existing arrangements

As disclosed in the Company's preliminary results announcement issued on 9 March 2017, the Company has an obligation to issue shares to Prestbury Incentives Limited ("Prestbury Incentives"), a wholly owned subsidiary of the Company's Investment Adviser, under arrangements entered into at the time of the Company's listing in June 2014. This follows the Company reporting sector leading total shareholder return for 2016. Consequently the Company has today issued 3,307,168 new ordinary shares of 10 pence each ("Shares") to Prestbury Incentives.

Full details of the calculation of the fee entitlement are disclosed in the company's preliminary results announcement. For an incentive fee to arise for the year to 31 December 2016, the EPRA NAV per share of the Group had to exceed 307.7 pence per share at 31 December 2016. The Company reported EPRA NAV per share of 323.6 pence per share, therefore a proportion of the returns above the threshold has been earned by Prestbury Incentives which is to be satisfied by the issue of the Shares.

Following the issue of the Shares, Prestbury Incentives has a total shareholding in the Company of 13,183,411 ordinary shares, representing 5.7% of the Company's voting rights. The Shares received by Prestbury Incentives will not be permitted to be disposed for a minimum of 18 months and up to 42 months from 31 March 2017, save under certain limited circumstances including a sale of shares if required to fund payment of the tax liability arising on receipt of the fee. It is not currently intended that shares will be sold to meet the tax liability arising.

The ultimate beneficial owners of Prestbury Incentives include Nick Leslau, Mike Brown and Sandy Gumm who are directors of the Company and members of the Prestbury Concert Party as defined in the Company's 30 May 2014 Admission Document (the "Admission Document"). Following the issue of Shares to Prestbury Incentives, the Prestbury Concert Party has a beneficial holding of 37,801,743 ordinary shares, representing 16.4% of the Company's voting rights. The Concert Party as defined in the Admission Document, which includes the Prestbury Concert Party, holds 48,958,965 Shares following the issue of the incentive fee shares, representing 21.2% of the voting rights in the Company.

Application has been made for the 3,307,168 Shares to be admitted to trading on AIM and admission is expected to be effective at 8.00 a.m. on or around 5 April 2017.

Following the allotment of the Shares, and in accordance with the Disclosure and Transparency Rules, the Company's issued voting ordinary share capital will comprise 230,536,874 ordinary shares. There are no Shares held in treasury. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the ordinary share capital of the Company under the Disclosure and Transparency Rules.

Enquiries:

Secure Income REIT Plc	[phone]
Sandy Gumm
Stifel Nicolaus Europe Limited (Nominated Adviser)	[phone]
Mark Young David Arch
Tom Yeadon
FTI Consulting	[phone]
Richard Sunderland
Claire Turvey

About Secure Income REIT

Secure Income REIT floated as a Real Estate Investment Trust on the AIM segment of the London Stock Exchange in June 2014. Upon Admission, shares were issued at 174p representing a market capitalisation of £293 million, which has subsequently grown to in excess of £780 million.

The Company specialises in generating long term, inflation protected, secure income from real estate investments. Its investment strategy is designed to satisfy investors' growing requirements for high quality, safe, inflation protected income flows.

At 31 December 2016, the Company's investment property portfolio was valued at approximately £1.64 billion, producing approximately £92.6 million per annum of rental income from long term leases with a weighted average unexpired term to expiry of over 23 years, one of the longest income profiles in the quoted UK real estate sector. All rental income is subject to fixed or RPI upwards only rent reviews.

The Company is advised by Prestbury Investments LLP which was adviser to Max Property Group plc until August 2014, when Max Property Group plc was sold to Blackstone Group. Prestbury Investments LLP is a partnership of real estate and finance professionals including Nick Leslau, Mike Brown, Tim Evans, Ben Walford and Sandy Gumm.

The Company's Board is chaired by Martin Moore and also comprises three further independent Directors in Leslie Ferrar, Jonathan Lane and Ian Marcus, as well as three members of the Prestbury Team in Nick Leslau, Mike Brown and Sandy Gumm.

This information is provided by RNS

The company news service from the London Stock Exchange

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