Roundtable Discussion; The Future of Mineral Sands. Watch the video 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.
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.
https://reactnews.com/article/supermarket-reit-makes-150m-sweep/
Supermarket REIT makes £150m sweep
8 Nov 2021 | by Jessica Middleton-Pugh
Assets bought in Cannock and Sheffield after raising £200m in an oversubscribed share issue last month
No, nothing. Suspect it's a local rag trying to hype up a non-story about possible takeover/closure of their local store. With the war-chest available to SUPR it's no surprise they're chasing more assets. If we've learned anything during this pandemic it's that our country is reliant on omnichannel supermarkets. Whatever else we've been willing to give up, we won't do without these guys.
Has anyone managed to find the press comment that sparked the RNS? I was wondering what the assets are that we are being linked with and the price.
Received my full allocation through HL, very happy with that. If only all retail offers were this straightforward!
Nothing from ii or Hargreaves L either - so don't worry. As the shares go live tomorrow, I expect we'll get a notification at 7:00 tomorrow.
Still nothing through from AJ Bell which is somewhat disappointing.
Got 100% through PB. Seems retail weren't scaled back.
Placing heavily oversubscribed, even though the number of shares on offer was doubled. No surprise there, just have to wait now to see the extent of scaling back and return of unused funds.
Just to note, for anyone who does hold these in a dealing account - if your platform offers the placing you CAN take them in your ISA if you have funds. AJ Bell said I couldn't but changed tune after I said this was wrong.
Personally, I will go for what I have in my dealing account, plus 10-20% more. I'll then sell down the ones in the dealing so PIDs and divis are tax free.