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Secure Income REIT

AIM:SIR
Snowflake Description

Proven track record and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SIR
AIM
£1B
Market Cap
  1. Home
  2. GB
  3. Real Estate
Company description

Secure Income REIT Plc is a specialist UK REIT, investing in real estate assets that provide long term rental income with inflation protection. The last earnings update was 76 days ago. More info.


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SIR Share Price and Events
7 Day Returns
0%
AIM:SIR
2%
GB REITs
-0.1%
GB Market
1 Year Returns
12.2%
AIM:SIR
8.2%
GB REITs
4.6%
GB Market
SIR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Secure Income REIT (SIR) 0% -2.1% -3.2% 12.2% 35.9% 41.3%
GB REITs 2% -0.5% 14.9% 8.2% 13% 6.6%
GB Market -0.1% 1.8% 4.5% 4.6% 6.9% 3.1%
1 Year Return vs Industry and Market
  • SIR outperformed the REITs industry which returned 8.2% over the past year.
  • SIR outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 4.6% over the past year.
Price Volatility
SIR
Industry
5yr Volatility vs Market

Value

 Is Secure Income REIT undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Secure Income REIT to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Secure Income REIT.

AIM:SIR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:SIR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.468 (1 + (1- 19%) (80.97%))
0.623
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 6.65%)
6.55%

Discounted Cash Flow Calculation for AIM:SIR using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

AIM:SIR Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.20
Current discount Discount to share price of £4.24
= -1 x (£4.24 - £2.20) / £2.20
-92.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Secure Income REIT is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Secure Income REIT's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Secure Income REIT's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:SIR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in GBP £0.49
AIM:SIR Share Price ** AIM (2019-11-19) in GBP £4.24
United Kingdom of Great Britain and Northern Ireland REITs Industry PE Ratio Median Figure of 40 Publicly-Listed REITs Companies 14.36x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 752 Publicly-Listed Companies 17.14x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Secure Income REIT.

AIM:SIR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:SIR Share Price ÷ EPS (both in GBP)

= 4.24 ÷ 0.49

8.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Secure Income REIT is good value based on earnings compared to the GB REITs industry average.
  • Secure Income REIT is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Secure Income REIT's expected growth come at a high price?
Raw Data
AIM:SIR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
-13%per year
United Kingdom of Great Britain and Northern Ireland REITs Industry PEG Ratio Median Figure of 22 Publicly-Listed REITs Companies 1.11x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 561 Publicly-Listed Companies 1.41x

*Line of best fit is calculated by linear regression .

AIM:SIR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.69x ÷ -13%

-0.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Secure Income REIT earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Secure Income REIT's assets?
Raw Data
AIM:SIR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in GBP £4.12
AIM:SIR Share Price * AIM (2019-11-19) in GBP £4.24
United Kingdom of Great Britain and Northern Ireland REITs Industry PB Ratio Median Figure of 53 Publicly-Listed REITs Companies 0.95x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,305 Publicly-Listed Companies 1.5x
AIM:SIR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:SIR Share Price ÷ Book Value per Share (both in GBP)

= 4.24 ÷ 4.12

1.03x

* Primary Listing of Secure Income REIT.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Secure Income REIT is overvalued based on assets compared to the GB REITs industry average.
X
Value checks
We assess Secure Income REIT's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Secure Income REIT has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Secure Income REIT expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-13%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Secure Income REIT expected to grow at an attractive rate?
  • Secure Income REIT's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Secure Income REIT's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
  • Secure Income REIT's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:SIR Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:SIR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts -13%
AIM:SIR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts -4%
United Kingdom of Great Britain and Northern Ireland REITs Industry Earnings Growth Rate Market Cap Weighted Average 22.9%
United Kingdom of Great Britain and Northern Ireland REITs Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.5%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:SIR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:SIR Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 117 98 107 3
2020-12-31 113 95 102 3
2019-12-31 120 110 102 3
2019-11-19
AIM:SIR Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-06-30 139 112 157
2019-03-31 132 111 152
2018-12-31 126 111 148
2018-09-30 118 99 131
2018-06-30 110 88 115
2018-03-31 108 85 126
2017-12-31 107 82 137
2017-09-30 104 82 146
2017-06-30 101 81 154
2017-03-31 97 77 123
2016-12-31 93 72 92
2016-09-30 92 68 26

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Secure Income REIT's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Secure Income REIT's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:SIR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Secure Income REIT Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SIR Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
2019-11-19
AIM:SIR Past Financials Data
Date (Data in GBP Millions) EPS *
2019-06-30 0.49
2019-03-31 0.49
2018-12-31 0.49
2018-09-30 0.47
2018-06-30 0.45
2018-03-31 0.52
2017-12-31 0.60
2017-09-30 0.65
2017-06-30 0.71
2017-03-31 0.60
2016-12-31 0.48
2016-09-30 0.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Secure Income REIT will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Secure Income REIT's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Secure Income REIT has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Secure Income REIT performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Secure Income REIT's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Secure Income REIT's year on year earnings growth rate has been positive over the past 5 years.
  • Secure Income REIT's 1-year earnings growth exceeds its 5-year average (37% vs 2.6%)
  • Secure Income REIT's earnings growth has exceeded the GB REITs industry average in the past year (37% vs -16.8%).
Earnings and Revenue History
Secure Income REIT's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Secure Income REIT Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SIR Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 138.81 157.37 21.27
2019-03-31 132.34 152.44 20.72
2018-12-31 125.87 147.51 20.18
2018-09-30 117.96 131.20 23.06
2018-06-30 110.06 114.89 25.94
2018-03-31 108.49 126.06 26.92
2017-12-31 106.93 137.24 27.89
2017-09-30 104.06 145.59 26.23
2017-06-30 101.18 153.94 24.58
2017-03-31 97.20 123.13 22.08
2016-12-31 93.21 92.33 19.58
2016-09-30 92.41 26.29 13.94
2016-06-30 91.61 -39.75 8.31
2016-03-31 95.54 -1.49 8.22
2015-12-31 99.48 36.77 8.14
2014-12-31 107.93 332.12 51.82
2014-06-30 47.77 145.81 1.54
2014-03-31 107.33 39.27 0.34
2013-12-31 76.96 31.65 0.26
2013-09-30 106.71 49.24 0.40
2013-06-30 106.31 34.77 0.38
2013-03-31 45.80 -4.90 0.16

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Secure Income REIT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Secure Income REIT used its assets more efficiently than the GB REITs industry average last year based on Return on Assets.
  • Secure Income REIT's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Secure Income REIT's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Secure Income REIT has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Secure Income REIT's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Secure Income REIT's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Secure Income REIT is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Secure Income REIT's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Secure Income REIT's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Secure Income REIT Company Filings, last reported 4 months ago.

AIM:SIR Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 1,329.85 1,080.02 98.34
2019-03-31 1,329.85 1,080.02 98.34
2018-12-31 1,281.59 1,080.58 101.75
2018-09-30 1,281.59 1,080.58 101.75
2018-06-30 1,218.90 1,010.45 226.63
2018-03-31 1,218.90 1,010.45 226.63
2017-12-31 860.58 955.31 88.76
2017-09-30 860.58 955.31 88.76
2017-06-30 813.25 955.80 90.66
2017-03-31 813.25 955.80 90.66
2016-12-31 737.42 955.54 91.67
2016-09-30 737.42 955.54 91.67
2016-06-30 534.55 896.09 89.64
2016-03-31 534.55 896.09 89.64
2015-12-31 504.41 891.02 81.61
2014-12-31 344.31 1,274.89 38.77
2014-06-30 189.20 1,279.30 39.51
2014-03-31 -71.28 1,415.59 25.37
2013-12-31 -71.28 1,415.59 25.37
2013-09-30 -113.06 1,443.38 25.22
2013-06-30 -113.06 1,443.38 25.22
2013-03-31 -39.32 718.68 13.06
  • Secure Income REIT's level of debt (81.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (673.1% vs 81.2% today).
  • Debt is not well covered by operating cash flow (10.3%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Secure Income REIT's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Secure Income REIT has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.71%
Current annual income from Secure Income REIT dividends. Estimated to be 4.06% next year.
If you bought £2,000 of Secure Income REIT shares you are expected to receive £74 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Secure Income REIT's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Secure Income REIT's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.35%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:SIR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland REITs Industry Average Dividend Yield Market Cap Weighted Average of 48 Stocks 4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 680 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:SIR Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.18 3.00
2020-12-31 0.17 3.00
2019-12-31 0.16 3.00
2019-11-19
AIM:SIR Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-25 0.157 3.746
2018-04-19 0.130 3.345
2017-04-20 0.125 3.467
2017-01-19 0.133 4.018
2016-10-20 0.118 3.755
2016-07-12 0.118 4.135

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Secure Income REIT has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Secure Income REIT only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Secure Income REIT's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.9x coverage).
X
Income/ dividend checks
We assess Secure Income REIT's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Secure Income REIT afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Secure Income REIT has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Secure Income REIT's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Brown
COMPENSATION £0
AGE 58
CEO Bio

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. He is a Chartered Surveyor with 25 years of experience. Mr. Brown serves as a Non- Executive Director at Max Property Group PLC. He served as a Director at Helical Bar plc from April 1998 and served as its Deputy Chief Executive Officer from August 2007 to June 2009. Mr. Brown was responsible for all of Helical Bar’s investment and trading activities during this time. From 1992 to 1997, he served as a Director of Threadneedle Property Fund Managers, running its then largest fund. Mr. Brown was a Board Member of the Investment Property Forum from 2002 to 2009.

CEO Compensation
  • Insufficient data for Mike to compare compensation growth.
  • Insufficient data for Mike to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

Mike Brown

TITLE
CEO & Director
AGE
58

Sandy Gumm

TITLE
Company Secretary & Non-Executive Director
AGE
53
Board of Directors Tenure

Average tenure and age of the Secure Income REIT board of directors in years:

5.5
Average Tenure
60
Average Age
  • The tenure for the Secure Income REIT board of directors is about average.
Board of Directors

Martin Moore

TITLE
Non-Executive Chairman
COMPENSATION
£75K
AGE
62
TENURE
5.5 yrs

Mike Brown

TITLE
CEO & Director
AGE
58
TENURE
5.5 yrs

Sandy Gumm

TITLE
Company Secretary & Non-Executive Director
AGE
53
TENURE
12.8 yrs

Leslie Ferrar

TITLE
Independent Non-Executive Director
COMPENSATION
£45K
AGE
64
TENURE
5.5 yrs

Jonathan Lane

TITLE
Independent Non-Executive Director
COMPENSATION
£40K
AGE
61
TENURE
5.5 yrs

Ian Marcus

TITLE
Senior Independent Director
COMPENSATION
£40K
AGE
60

Nick Leslau

TITLE
Non-Executive Director
AGE
59
TENURE
12.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
16. Oct 19 Sell PIHL Property LLP Company 16. Oct 19 16. Oct 19 -5,616,616 £4.20 £-23,589,788
X
Management checks
We assess Secure Income REIT's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Secure Income REIT has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Secure Income REIT Plc (LON:SIR) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

So we need to investigate whether Secure Income REIT can afford its dividend, and if the dividend could grow. … Secure Income REIT is paying out less than half its earnings and cash flow, while simultaneously growing earnings per share at a rapid clip. … It's great that Secure Income REIT is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow.

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What Should We Expect From Secure Income REIT Plc's (LON:SIR) Earnings Over The Next Few Years?

Secure Income REIT Plc's (LON:SIR) most recent earnings announcement in March 2019 revealed that the company experienced a slight tailwind, eventuating to a single-digit earnings growth of 7.5%. … Today I want to provide a brief commentary on how market analysts predict Secure Income REIT's earnings growth outlook over the next few years and whether the future looks even brighter than the past. … This means that, we can expect Secure Income REIT will chip away at a rate of -6.5% every year for the next couple of years.

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Should You Be Excited About Secure Income REIT Plc's (LON:SIR) 12% Return On Equity?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Secure Income REIT: 12% = UK£148m ÷ UK£1.3b (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Secure Income REIT Have A Good Return On Equity? … Secure Income REIT's Debt And Its 12% ROE Secure Income REIT has a debt to equity ratio of 0.87, which is far from excessive.

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What You Need To Know Before Investing In Secure Income REIT Plc (LON:SIR)

Secure Income REIT Plc is a UK£1.3b. … real estate investment trust (REIT) based in London, United Kingdom. … They have to meet certain requirements in order to become a REIT, meaning they should be analyzed a different way.

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What Should Investors Know About The Future Of Secure Income REIT Plc's (LON:SIR)?

Secure Income REIT Plc's (LON:SIR) announced its latest earnings update in December 2018, whicha

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Is Secure Income REIT Plc's (LON:SIR) ROE Of 9.4% Impressive?

Our data shows Secure Income REIT has a return on equity of 9.4% for the last year. … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.094 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

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Should You Invest In Secure Income REIT Plc (LON:SIR)?

Secure Income REIT Plc is a UK£1.2b. … real estate investment trust (REIT) based in London, United Kingdom. … They have to meet certain requirements in order to become a REIT, meaning they should be analyzed a different way.

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What Secure Income REIT Plc's (LON:SIR) ROE Can Tell Us

Our data shows Secure Income REIT has a return on equity of 9.4% for the last year. … View our latest analysis for Secure Income REIT? … Return on Equity = Net Profit ÷ Shareholders' Equity

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One Metric To Rule Them All: Secure Income REIT Plc (LON:SIR)

Secure Income REIT Plc is a UK£1.23b. … real estate investment trust (REIT) based in London, United Kingdom. … See our latest analysis for Secure Income REIT

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Is It Time To Buy Secure Income REIT Plc (LON:SIR)?

Secure Income REIT Plc (LON:SIR), a reits company based in United Kingdom,. … Let’s take a look at Secure Income REIT’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change … Check out our latest analysis for Secure Income REIT

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Company Info

Description

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.

Details
Name: Secure Income REIT Plc
SIR
Exchange: AIM
Founded: 2007
£1,368,886,522
322,850,595
Website: http://www.SecureIncomeREIT.co.uk
Address: Secure Income REIT Plc
Cavendish House,
18 Cavendish Square,
London,
East Lothian, W1G 0PJ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM SIR Ordinary Shares London Stock Exchange AIM Market GB GBP 05. Jun 2014
Number of employees
Current staff
Staff numbers
0
Secure Income REIT employees.
Industry
Diversified REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/19 22:03
End of day share price update: 2019/11/19 00:00
Last estimates confirmation: 2019/10/23
Last earnings filing: 2019/09/04
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.