Supermarket Income Share Price (SUPR)

I haven't had a chance to read it yet (thanks for the link though) and I am no expert on this sector, but I recall that Tesco's rise to dominance was a large degree because of this. They realised that having their capital tied up in owning their properties was restrictive. So sell and lease-back the asset, free up money for expansion and take it from there. It's a winner for the supermarket, but also a winner for the REIT that has a dependable income stream from a community asset that is not going anywhere. You just need to get the numbers right.

SUPR doing well I feel. It's a buy/add if the market gives you a chance below 80p. The move to a progressive (+2%) dividend is welcome as it attracts the infra-crowd who like that sort of thing (incl. me for certain segments of the family's investments).

Guitarsolo

Letter: Supermarkets see sale and leaseback as a useful financing tool - From Rob Abraham, CEO, Supermarket Income Reit, London SE1, UK

https://archive.ph/i629P

[Archived link removes paywall; make of it what you well]

Glad to have caught the bounce today at 78p

Crazy days for sure. Hope they settle this thing

"Supermarket Income REIT plc (LSE: SUPR, JSE: SRI) announces that it has increased its secured term loan with a bank syndicate comprising Barclays, HSBC, ING, Lloyds and Crédit Agricole CIB (the "Facility"), for its joint venture (the "JV") with funds managed by Blue Owl Capital ("Blue Owl"), by £222 million to £437 million. The interest-only facility matures in June 2028, and benefits from two one-year extension options at the lenders' discretion. The increased facility is priced at a margin of 1.65% above SONIA and the cost is fixed for the duration of the facility at an all-in rate of 5.24%."

Plenty more cash available for acquisitions, but the net initial yield is going to have to be around 7%+ to make it worthwhile. It's not the cheapest time to borrow, are they looking to take market share even if the margin isn't the most attractive? Someone on here highlighted another company sitting on the sidelines, presumably waiting for cheaper financing. If that was you, can you provide an update on their progress given that interest rates don't appear to be coming down much.

Guitarsolo

Nick Hewson buys more…

https://www.londonstockexchange.com/news-article/SUPR/director-pdmr-shareholding/17501305

Trek