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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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I spoke to HL yesterday and they don’t have access to the placing. Does appear that Primary Bid is the only real way for PI investors to participate. I put an order in for an additional 66,000 shares. Hopefully full allocations will be granted again.
Still nothing from HL, less than two weeks to go now but still time. Any other broker offers out there?
Your broker platform should be able to apply for the shares in the placing. HL have always been able to; not sure about Interactive. We have also used the PrinaryBid platform to buy more (albeit not in the ISAs or SIPPs which is a bit annoying) and it’s always been fine.
Check out the RNS of 4th October 2021, PrimaryBid were involved last time. I'll let you know if/when I hear anything from HL, based on previous experience it could be a good few days yet though.
Krusty, like you I won't use Primary Bid and I find it annoying that it's becoming increasingly the case that Co's are using them.
I looked back at the RNS's concerning the previous fund raising and Primary Bid was not mentioned on that one so I think SUPR may have been "signed up" by PB like many others. Like I say. I hope not and if you get any luck with HL, can you post back?
I know it looks that way StayinAlive, and you may be right. I can only tell you that it looks very much the same as the last placement and I was able to buy shares through an offer on HL then. I refuse to use the PrimaryBid app because it doesn't meet what I feel are basic requirements in terms of managing my money. I'd like to pick a few more up at the discounted price though, so I'm hoping HL will be participating again.
I hope I'm wrong but it appears that the only way for private investors to participate is via this Primary Bid app which will not allow you to acquire in your SIPP or ISA.
I do wish they would have larger placements less frequently. They are such a hassle, and I don't think it reflects well on their long term planning.
Hi GedC, I'm with HL but last time they made the offer available through the broker platform. The only issue with your SIPP is making sure you've got funds available to buy additional shares, otherwise the process is exactly the same as it would be for an ISA or standard trading account. In fact, HL allowed me to apply for shares in, say, an ISA even if I held them in a SIPP but I'm not sure how ii works I'm afraid. Others may be able to advise. K
Thanks Othodelargery very helpful……i have now bought in! ……..excuse my ignorance again please but how do I participate in the placing …my shares are held in a SIPP….. the portfolio is dealt with through Interactive investor …
Excellent entry point - discount plus no stamp duty.
GedC - sorry for delay in response. Widening yield means that the yield on which the properties are valued could increase (perhaps as investors demand a consistent margin of return over the risk free rate as interest rates rise). If rates are rising then arguably so should yields. However my view is that the yield spread over risk free / supermarket bonds, is wide enough to absorb some rate increases and rent should go up commensurate with inflation. I do see some risk that inflation outstrips the RPI / SONIA caps on the leases.
I got in just over a year ago for the yield alone @ 5% .... I have been well rewarded for the capital appreciation as well at +20%..... Long term hold, I think :)
Thanks to all for all the replies very helpful……can you let me. know what you mean by widening yields pls ….also I presume the timing of a purchase in the quarterly divided cycle doesn’t really matter as it will fall on the ex divi date by the amount of the dividend ……have you a view on the risk of the likes of Sunak altering the tax status of these REIT’s to obtain more dollar for the exchequer ….I understand the income is returned as rental income on a tax return rather than dividends. …thanks in advance …Ged C
Welcome to the board. Attractive dividend yield from well-bought portfolio of inflation-linked assets, along with exposure to a JV with capital value upside. What’s not to like? Risks: inflation caps on leases are below rate of inflation, interest rate risk and risk of widening yields in higher rate environment. However, for me spread over risk free / supermarket bonds gives some protection from yield widening. I also don’t see the issue with the equity raises (as long as you can at least hold your corner) as that’s the only way for a REIT to grow (have to distribute 90% of income), and there’s significant benefits to scale and liquidity. Good luck.
Hi @K. Yes, I think the first time I came across you was on the EAT board. I'm well down there thanks to a bit of trading, but back fully invested, in fact over-invested as I averaged down recently. I'm very happy with most things at the moment. Just lost out on AEW Uk and Middlefield Canada by not getting back in quick enough, and GSF can wait - long time until the next (probably 1p) dividend, so plenty of time to get back in there. Time to start leaving things alone now and live off the dividends.
That might just be good timing adv11, mid-afternoon wobble, buy the dips. Have we discussed EAT? I'm sure it won't have passed you by. Currently pays 2.2p / quarter (up from 2p last year) and can be had for 115p just now. Should be declaring another 2.2p dividend any day now. As always, this is NOT a tip but fyi I'm invested there. Big drop when war broke out but has steadied recently.
Just sold out of GSF and added some more here. (good reason for Ged not to invest )
Hi Ged, welcome to the board. If you can find a reason why not to invest in SUPR I'd like to know what it is. You've listed many of the arguments for holding SUPR shares, especially if you need an income from dividends (as I do). The cash calls are an issue but the SP dips seem to have been recovered pretty quickly as the money raised so far has been put to very good use. My only advice, should you decide to come on board, is not to invest all your funds in one go in case of a sudden, unexpected fall in these volatile times. Good luck, whatever you decide. K
I guess if you look at the 3-year chart this is just getting back on track. Also the built-in, upward-only rent rises give protection against inflation, so look very attractive just now. Plus SUPR only invest in the larger, omnichannel stores offering online delivery and petrol, so they've covered all the angles. If we've learned anything from the recent Brexit/pandemic/war disasters it's that we can't manage without supermarkets.
I have been followings this for over a year now …I new to this so go easy pls ….I haven’t bought any and it’s gone up by 30% ffs ….people put me off because of the random cash or rights calls that come now and then… the portfolio looks almost risk free despite yielding a healthy almost 5% …..what’s the downsides pls other than the unlikely issue of some kind of intricate fraud by the board …….we will always need food supermarkets and the portfolio of leases are wide and strong ….
Whyhas this gone up 3% today? All my supermarket shares are rubbish atm.
All-time high of 129.50 this afternoon. Be good if this can hold above 130 before the next cash call. Paying a solid dividend too - what's not to like on a sunny Friday afternoon?
PDMR buying £190k worth of SUPR shares, seems like a pretty clear vote of confidence in the future.