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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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Positive to see the placing cash being deployed promptly. Looks like a good quality portfolio, with a very high quality tenant, although the yield perhaps feels a little low (despite it being “South East”) and the cap of 3% on the RPI inflator may well prove to be a bit on the low side over the next 10 years. Overall positive though.
Agreed. The subsequent announcement that they are in talks to buy a good size Waitrose portfolio is also positive - they will hopefully soon have deployed the placing cash and be earnings positive off it. Keep it up Atrato!
Good news today, tho of course it was to be expected that all rent would be paid. It may get the attention of ppl like the Chronicle team that here we have a REIT in no danger (well, almost no danger) of rent defaults.
Some key points:
- £53m passing tent (1% pa inflator)
- £400m equity value (based on 100%)
- £377m of outstanding debt (£211m Highbury - 7% interest rate, and £167m Dragon - floating rate notes - unclear whether swapped to fixed rate)
- £777m Enterprise Value
- equates to a gross yield of 6.8% with break in 2023
Amortisation profile of £62m over for 2021 and 2022 plus c.£17-18m interest cost if Dragon not swapped. Leaves net £9m of free cash.
- unclear what market rent looks like against passing, but given referred to a ms reversionary and it’s been stepping up at 1% should mean there’s more yield to extract. Feels very good for a predominantly South East portfolio.
Yes, they could walk away, but I suspect the portfolio will predominantly be high performing stores otherwise the team wouldn’t have gone for it. Majority of the stores are in keeping with the strategy and there appears to be a load of reversionary potential. I expect that either they will be relet to Sainsbury at an attractive yield with a refi at very attractive rates or Sainsbury will buy the whole thing back netting a healthy capital value gain for SUPR. Feels like 10% plus per annum capital gain with opportunity to convert into high yielding investment post lease regear / refi. Wouldnt want all the portfolio in this sort of structure but £51m is 10% which feels fine. Would be nice to see some more deployment in direct assets in the not too distant future.
Hmm.
Anyone any comments?/
This is a departure from the existing pf.
Lease expiry in 2023.....what will retail look like then, could Sburys walk maway?
here's a 5 minute investors overview of SUPR with the principals Ben Green & Steve Windsor:
https://youtu.be/kscQvqdxx34
Might already be common knowledge but LSE's buys and sells are not that good. My 3000 x 1.0825 buy at 0947 shows as a sell. Not been on this site that long but would have expected better.
Afternoon - you may already have seen this, but below is an interview with Justin King (ex CEO of Sainsbury's) and Steve Windsor (investment advisor to SUPR) about how supermarket supply chains are coping:
www.youtube.com/watch?v=uVBjQu9YCks&t=17s
I suppose a safe steady REIT like this just doesn't attract the comment that the get rich quick hordes look for.
But if anybody's listening, today's RNS looks good news to me.
Surprised not to see a bit more chat here. It looks a pretty safe, high yielding investment in uncertain times.
The Supermarket Income REIT presentation from our recent London company seminar can be found in our members area here: https://sharesoc.ning.com/xn/detail/6389471:Comment:54914
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Supermarket REIT present at our next London seminar on the 13th November which may be of interest to potential investors and current shareholders. More details and registration here: https://www.sharesoc.org/events/sharesoc-growth-company-seminar-in-london-13-november-2019/
Supermarket REIT present at our next London seminar on the 13th November which may be of interest to potential investors and current shareholders. More details and registration here: https://www.sharesoc.org/events/sharesoc-growth-company-seminar-in-london-13-november-2019/
...in this Brexit world, I like some 'yawn'....
apart from operating slightly under current dividend cover, it all looks very predictable and slow growth. But in this world I will happily take the 5% without wild gyrations please!
Can't see the attraction to get involved here. A 4% total return over the last year, essentially. Yawn.
Supermarket Income's presentation from our recent Manchester seminar is available in our full member exclusive area here: hTTps://www.sharesoc.org/members-area/
Just one week until Supermarket Income REIT present at our Manchester growth company seminar which may be of interest to current shareholders and potential investors hTTps://www.sharesoc.org/events/sharesoc-growth-company-seminar-in-manchester-26-february-2019/
I’m liking the look of recent directors Buying spree. I’m happy to dip my toe in the water ! DYOR etc