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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.
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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.)
It just seems the share price is geared to general commercial property price and inflation. which is a bit ridiculous. It would be a worry if inflation stays way above 5% for long; as most of the rentals have an upper ceiling to rent rises, but I think that unlikely. Otherwise income is linked to inflation, so not a problem and short term property prices are irrelevant with such long term leases.
Hi,the dividend yield is now very encouraging.
I would like to think the bottom has been found.
For me the fundamentals seem fine for holding while inflation gets eroded down and interest rates moderate next year.
Hopefully in a years time current SP will look super cheap.
ATB.
Inflation 8.7% and falling, yield 7.7% and rising as SP dropping, won't be long at this rate before the yield is greater than inflation unless there is a dividend cut which I think is unlikely.
With spare cash not earning much and dividend not covered they could buy their own shares at a 14% discount and cover the dividend. Also does not make sense to offer scrip dividends when discount so high and make the dividend cover even worse. They could of course buy more assets but would they get these at 14% discount . The problem is that if they bought their own shares then the company size would shrink so less money in fees although IMO it would be the best option for shareholders.
Hope I got a bargain,time will tell.
Got my average down.
GLA holders.
Just bought 6000 more at 82.25p,must be due a lift soon!!
GLA holders
Hi all,work day went well but SP here had a little wobble, hopefully near the bottom now.
Very nearly added, still may soon.
GLA
Okfornow - you secured an excellent price. Prob no upward movement till interest rates start to begin their lower cycle, but enjoy the 7 percent divi while you (we) wait.
Just bought in at the close.
Hopefully some upwards movement next week.
Happy weekend.
TerryM1, yes I had to tick the (KID) box. My question refers to the yearly adviser costs. From what I remember they were yearly managment fees and were approx 4% on an investment of £10k.
Buzzthomas
This is some FCA jobsworth issue, you have to accept the Key Information Document KID (KID) and Halifax, IWEB etc (Lloyds services) are hot on this although not required elsewhere e.g Primary Bid.
For me it adds small extra costs for all REITS I want to transfer from ordinary share account to my ISA. IWEB can do this as single transaction (1 fee) to sell in ordinary share account and buy in my ISA over the phone, however as you have accept the KID (tick box) it can't be done over the phone you have to do this as 2 transactions so 2 fees.
The FCA are great, they protect me by making sure I tick a box to buy a share I already own and stop me from buying in placing as I do not know enough but will happy let me buy the same share for a higher price and charges on the market. All while there are unusual price movements on shares I own only to find out the reasons a few days later when the news is released and of course the FCA do nothing with this insider dealing. What would we do without them.
Can someone please explain why when I tried to buy some SUPR with Halifax I had to read and sign some legal stuff and after was presented with various costs. ie Halifax dealing, Stamp Duty, then some annual payments to reit advisers. I understand the first two costs but the other costs !?
SUPR has declared an interim dividend for the period 1 January 2023 to 31 March 2023 of 1.5 pence per Ordinary Share ("Third Quarterly Dividend").
The Third Quarterly Dividend will be paid on 26 May 2023, to Shareholders on the register as of 21 April 2023. The ex-dividend date will be 20 April 2023.
https://www.lse.co.uk/rns/SUPR/half-year-report-6-months-ended-31-december-2022-g1h1qc0i1g2ej5q.html
maybe I should read it fully before posting LOL
so they dont think increasing dividend is going to be a thing
can anyone explain the RNS
I’m invested here, average 94, before buying, I always give the HL Financials tab a quick scan for evidence of a debt problem - I found no issue with SUPR. Is there really ‘a large debt to service’ here, like Hardboy says?
Bigger concern was debt interest a lot was up for refinancing over next few years so would end up with higher interest costs. They need to clear down some down ahead of that happening.