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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've just sold this today @114.25p, for a 8% profit including the two divis of 1.465p.
It's just hit an ATH, so thought I would bank the profit and watch.
I am expecting more capital raises, which may allow for repurchase at slighty lower level.
If not there are a couple of different Reits that pay good divis, incl AEWU and WHR.
I've also just sold AEWU yesterday as that was a 13% profit in one month.
Would hope to purchase something in the sector very shortly, with a decent divi attached.
GLA - CSDI
Time for next divi of 1.465p as goes ex div tomorrow.
SP seems to be near ATH at 112.75 after a steady rise since start of year.
Expect more growth and capital to be raised as we go thru the year.
would be great if SP continues to rise at same rate it has since 1st Jan - up nearly 6%, plus already had 1.465p divi.
GLA - CSDI
I hold on spreadbet via IG and pay their "lending fees" of 2.5% and as the share price is pretty stable all seems to sit well without too much concern.
Hello Seagull,
Please excuse my ignorance but do you mean you have a leveraged SUPR spreadbet with IG or do you hold a different product that gives you 3x the dividend ?
It is a nice diverse investment here, the only others I consider similar to this are healthcare of which there are a could of note and also dabble in student housing. People need to learn, the need to eat then fade away. All bases covered. Great REIT this one, not even a blip really back in March 2020, not much risk to capital here. I hold through 3x leverage via IG so it is a bit like a buy to let with a mortgage but with better returns. It works out about 15% p/y return after costs with a similar risk profile. Have fun building your position.
Yes that's right Seagull101, I read the RNS saying it had been scaled back significantly so I was really surprised when PrimaryBid told me I'd received my full allocation. I only subscribed for 2,000 shares so maybe the smaller requests have been met in full? I paid 106 for them, as per the offer document, so again not a significant discount to the current price. I've probably only saved £20 + dealing costs but as I'd decided to invest here anyway it seemed like a good way to start. Planning to add some more over the next 12 / 24 months, as funds allow, to improve the income from my ISA. My first REIT investment, might not be my last if I see other opportunities like this one.
It did say it had been scaled back so well done on getting the full allocation. I take it that was at 106p as in the original offer ?
email from PrimaryBid this morning, I've received my full allocation. I'll probably dip into the market from time to time to build my position and keep a bit handy for the next cash call.
Raise increased from £100m to £150m, shows there's been plenty of support for it. Revised deadline has passed now, allocations will be announced tomorrow, trading in the new shares commences on Tuesday. I expect it will be scaled back so planning to add more once confirmed and monies refunded.
Some great info posted here, thanks to all contributors. Like some others, I'm looking at ways to supplement my pension and this seems to fit the bill. Consistent, reliable income stream from a REIT with relatively few moving parts. If anything, the pandemic has served to strengthen our nation's love affair with supermarkets and I don't see that changing any time soon. I will have this in my ISA for the tax-free income, I tend to use my SIPP for "growth" funds and trusts, and a couple of speculative shares, I don't need the income from it yet. GLA. K
Ha ha, of course, thank you Genghis15!
Othode,
Have to agree with you. This is my first purchase of a REIT. Just looked like a safe home for the forseeable, with a nice divi.
Certainly expect to be here for some years, and now know what to expect as it grows into the Retailer Property space. Certainly a theme that has been repeated many times over the years with various/Retailer sale and lease back schemes.
Not a bad share for a LTH, and represents about 6.5% of my SIPP and yields 5.4% which is far better than any money in the bank can earn these days.
Cheers & GLA - CSDI
Anyone who invests in a growing REIT such as SUPR and doesn’t expect a rolling programme of equity raise / placing a does not understand in what they are invested. The business distributes, at least 90% of its income to qualify as a REIT, in SUPR’s case it’s more as part of the portfolio (Sainsbury Reversionary portfolio) is not yet cash yielding. So the only way to grow is to raise new equity, which can only ever be done as a discount to the current share price. I felt the discount offered on the October raise was too high but this round feels more reasonable (and at a lower raise quantum). Ultimately we need more liquidity in the share to attract bigger institutions, so it’s a good thing assuming they can invest it well and the track record to date is very good in my view.
Hi Genghis
Yes I am mainly a HY divi investor. Gets me into a lot of trouble at time, tyeing up funds when SP moves against me.
All my shares are in my SIPP - with 90% chasing HY and 10% for fun/trading.
My biggest holding at 17% of p/f is GSK, which has been battered since last summer.
At current level just over £12 it is worth investigating on risk/reward basis.
My two biggest yielders are tobbaco shares - BATS & IMB. I've only just bought BATS by selling some IMB at a loss as been holding IMB for over 3 years.
If you want to view my full p/f - I have it as a discussion on the "General Chat" forum.
Be warned though as any share I purchase is likely to suffer the CSDI curse (Crap Share Dealing Ideas) as
"CSDI has a natural ability to buy shares just before they drop like a stone and then press the "sell" button just before take off" LOL
Cheers & GL - CSDI
"the company pays out all it's capital in dividend" It wouldn't last long if it did that....all its income, of course.
TBh i could always draw from my ISa and put it back as I've not used this years allownce. But its a bit of a faff, and I was thinking of moving some to a couple of other good yielding stocks that might have more capital upside. I have kept a smallish holding here, and hey ho, I might change my mind b4 deadline, if it doesn't close early.
There are plenty of shares offering similar dividends to this, but not many that offer a combination of relatively high yield and relatively low risk. I'm in, hoping the offer isn't scaled back too severely. GLA. K
Perhaps this will cheer people up a bit. From Shares Magazine yesterday, published before the recent offer announcement:
"THE SHARE PRICE return delivered by Supermarket Income REIT (SUPR) over the last 11 months may not be enough to quicken the pulses but a very steady performance along with a reliable inflation-linked income stream looks attractive after the recent volatility in the bond market.
Results for the six months to 31 December 2020 (2 Mar) reflect the series of acquisitions the company has made with rental income up 76% and pre-tax profit increasing 323.1%. The company raised £200 million to invest in a pipeline of assets in October 2020.
The portfolio’s weighting towards omnichannel supermarkets – located in good locations and able to fulfil online orders and serve shoppers in-store – has been a winning strategy during the Covid-19 pandemic.
Investment bank Jefferies says: ‘Earnings per share were up 12% to 2.8p with the dividend per share (DPS) rising with inflation to 2.93p (+1.7%) with progress made on dividend cover, whilst post-period end acquisitions should see DPS
fully covered on an earnings basis which is a positive step.’"
I can appreciate why people are unhappy about this fundraise, I would have preferred to purchase shares through my ISA too. However, the dilution is minimal, and as I assume most people are here for the dividend yield, it gives the opportunity to buy shares (or more shares) at a small discount, thus slightly improving the yield overall. As someone pointed out, the company pays out all it's capital in dividends, so it will always pay to have funds available to take advantage of these offers as they arise from time to time. Longer-term, shareholders should see benefits.
By doing this thru PrimaryBid, they have locked out investors like me who have their funds in an ISA.
Not impressed with this, i would have taken a chunk, but will now invest elsewhere.
disappointing for the small PI who is not liekly to participate, and therefore suffer dilution leading to lower SP.
Why can't they propose at a premium or at least market price, as a position of strength.
Alternatively offer a rights issue so all can fairly participate.
something to be wary of in future as only bought into this on 30th December.
Was Not expecting any great capital gains but was expecting secure income without big down side, subject to market shenanigans like Covid etc which are always a potential threat.
This increase in capital effectively wipes out the SP rise since 31/12/20 - thanks a bunch !
Yours truly Grumpy - CSDI
CJ66, PrimaryBid shares can't go straight into an isa or sipp, so you should be OK. Have had offer email, but not sure yet.
Received my alert message from PrimaryBid at 12.18 so I think they've been a bit slow off the mark! I'll be buying in my Fund & Share a/c then bed & ISA in the next FY.
...haven't had any alert or notice through either - not that I can do anything as mine are in an ISA - and used yrs limit + don't have £1000 minimum purchase required as spare cash at present,
hence my annoyance below.
Feel like Victor Meldrew now....
No worries, it's appeared now.
Yes I know, I want to buy some but I can't find the offer on PrimaryBid.