We would love to hear your thoughts about our site and services, please take our survey here.
To provide its shareholders with an attractive level of income together with the potential for capital growth by investing in a diversified portfolio of supermarket real estate assets in the UK.
Find out MoreLondon South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Is this a 'fire sale' or a valuation opportunity for SUPR?
RBC cuts Supermarket Income REIT price target to 115 (135) pence - 'outperform'
Sp, requires to close above 77.5, for a price pivot break, to happen. That sp, level is above the latest upper bollinger band,which means the band ought to turn upwards, which is bullish. Bottom sideways price formation since June 2023, indicates accumulation, bullish fuel to power breakout from formation . The sp, target is 88.
Hopefully some sanity might begin to return here now.
Back to level in these having bought them a bit early. Good set of results 👍
Changes in fair value of investment properties (£256.1m)
A whopper for the m/cap of £933m... but seems to be more than accounted by in the SP fall of 34% over the last 12 months.
Final Results out tomoz. How much loss on the Portfolio are we expecting? In excess of £200 million?
Goldman Sachs cuts Supermarket Income REIT price target to 76 (80) pence - 'neutral'.
I wonder how much research that took?
ShareSoc is hosting a webinar with Supermarket Income REIT (SUPR) on 11 October 2023 which may be of interest to current shareholders or potential investors. Steven Noble and Robert Abraham (Atrato Group) will be presenting. You can register here: https://www.sharesoc.org/events/sharesoc-webinar-with-supermarket-income-reit-supr-11-october-2023/
I don't think Atrato are responsible for the risk-free rate going up. The risk rewards look good for SUPR with funding in place.
Should the Atrato affiliate invest its promote fee in SUPR to acknowledge near 30 per cent drop in the stock's value since IPO?
Thanks for the insight ...
I certainly wouldn't be happy if they were now issuing a tranche of shares at the current market price, particularly if they didn't have a blazingly good use for the capital! I suppose I was guilty of seeing the scrip only from a small investor's point of view.
Of course the size of the uptake of a scrip is an indicator of what investors think of the prevailing price. From what I can see of the 6-month figures the latest uptake was 1.9m shares, whereas the year before was 300,000 ... nough said.
Thanks,
Mike
Hi
A scrip dividend is functionally the same as (1) taking the dividend in cash and (2) reinvesting that cash dividend (minus taxes) into newly-issued shares of the company.
If you would be happy to see the company announce a capital increase tomorrow at a price around the current share price, then you should view a scrip dividend as a good option to offer to shareholders.
If you think that the share price is likely undervalued at the moment (acknowledging this really depends on how rates will evolve), then it is currently a wrong time to issue new shares or offer a scrip dividend.
The company is, I assume , in the latter camp. I view it as a sign of strength. (1) They have conviction their share price is below fair value and (2) There are not desperate for cash.
I note that the dividend declaration today, withdraws the scrip dividend option.
How do folk read that?
My take is that a scrip increases the total number of shares, saves actual cash for the company, but would reduce the NAV because of the increased divisor. I don't see what's not to like about the scrip from the company's point of view.
Mike
Sainsbury trading statement - sales +11%
Two directors buy just over 350,000 shares, for £260,169.
Benedict Green buys 217,894 shares and Steve Windsor buys 134,433 shares.
This is starting to look interesting with the yield approaching 8%
My concern is what it will cost to refinance the £140m of unsecured debt due in 2024. They have an investment grade credit rating and Edison assumes it will cost around 5%, but what if SONIA is at 6% or even 7% by then?
Thanks for the replies to my question. I've only just noticed them. (Is there a way to get email notifications when there are a new posts to a chat board here?)
I'm still holding off on buying SUPR (and most other shares) for now. I'm hoping for a bigger margin of safety.
Open Market Value (OMV) at review is a hypothetical concept based on restrictions and assumptions made in the lease and could be defined as: “the best rent a property might achieve if on the open market at the review date”.
Hi all, getting inflation proof rent rises although desirable is probably not so important for the overall health of the business.
More important is fully tenanted buildings and good rent collection.
Personally I think inflation will fall quickly to 4/5% and then stay at that level for an extended time.
For many , myself included the current dividend and dividend history makes owning these shares ATM attractive.
My average is just over 82p which hopefully will soon be reached.
This is not investment advice just my opinion.
GLA.
Just to confirm what Genghis said - I notice the rent caps whenever a new deal is done. I'm not sure if they are summarised anywhere. I tried to keep a record. Just checked it - there is quite a variety. Most seem to be RPI, some CPI, a couple fixed (which could be a worry) and one "OMV" whatever that is. Some are annual reviews, some 5 year, 1 x 7 year. The lowest cap (apart from fixed) seems to be 2.5%. There is a variety - 4% may be more common than 5. And it seems some of the early ones were not capped.
A summary would help. Maybe someone should suggest it to the board (who thankfully seem to be too busy buying shares.)
Tich
Most of the rents are capped, dunn if it's summarised anywgere, (Annual Report?) but every new deal I've seen them do over the last 5+ years has had a cap, 4% ish prolly the average.
Hi Hardboy. I've been looking through SUPR's reports and presentations to find out whether the inflation linking of rents is capped, but I couldn't find that info anywhere. I'm curious to know where you got that from.
A 5% cap is pretty good. I think 3% or 4% is more common. Personally I am worried about inflation staying higher than 5%. But I guess a little higher wouldn't hurt too much, as I'd be getting a good initial yield. (I haven't bought yet.)