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4 Oct 2017 09:01
\* The following announcement replaces the trading update released today at 7.00 am under RNS number 6094S.
Please note that under the 'Commencement of dividends' section the year end date has been amended to 2018.*
SUPERMARKET INCOME REIT PLC
(the "Company")
LEI: 2138007FOINJKAM7L537
Trading Update
For the first quarter to 30 September 2017
Supermarket Income REIT plc (LSE: SUPR), the UK supermarket real estate investor, today publishes its maiden trading update for the period from admission of the share capital of the Company to trading on the London Stock Exchange on 21 July 2017 to 30 September 2017.
Rapid deployment of funds
In the six weeks following its flotation, the Company has invested more than £150 million in three high-quality supermarket properties (the "Portfolio"). The Portfolio has a total annualised passing rent roll of £7.9 million and a weighted average unexpired lease term of 17 years.
The portfolio assets are:
· Fully let on a long term lease with upward only, annual, RPI-linked rent reviews
· Strategically important to the tenant with strong trading performance
· In suburban locations with excellent transportation links
· On large sites with low site cover, providing future asset management opportunities
· Already fulfilling the last mile of grocery home delivery and/or click and collect
These initial investments provide the Company with a high quality property portfolio and underpin the Company's investment objective of delivering low-risk inflation-linked income with excellent asset up-side potential.
Strong financing position
On the 30 August 2017, the Company arranged a £100 million credit facility with HSBC, priced at a margin of 160 basis points over 3 month LIBOR, which is currently equivalent to a total cost of debt of 2.2% per annum.
This attractively priced facility reflects the quality of the underlying properties and strength of the tenant covenants, and will provide flexible capital to fund the growth of the Company's portfolio.
The Company will continue to target a loan-to-value ratio (LTV) of 30 - 40% in the medium term, which the Directors consider conservative given the low risk nature of the portfolio.
Commencement of dividends
The Company declared its maiden interim dividend of 1.375 pence per share on the 28 September (payable on 27 October 2017) and is on track to deliver an annualised 5.5 pence dividend for the full year to 30 June 2018.
Nick Hewson, Chairman, commented:
"We have rapidly built our portfolio of supermarket property, precisely in line with the business plan outlined at IPO in July. Our high quality portfolio now produces attractive inflation linked income for shareholders together with the potential for long term capital returns"
For further information, please contact:
Atrato Capital Limited +44 (0)20 3790 8087
Ben Green
Steve Windsor
Steve Noble
Stifel Nicolaus Europe Limited +44 (0)20 7710 7600
Mark Young
Neil Winward
Tom Yeadon
Tavistock +44 (0)20 7920 3150
Jeremy Carey
James Whitmore
James Verstringhe
NOTES TO EDITORS:
Supermarket Income REIT plc listed on the London Stock Exchange in July 2017. Its objective is to acquire a portfolio of supermarket real estate assets in the UK, providing long-term RPI-linked income, from institutional grade tenants and the potential for capital growth through active asset management opportunities. Atrato Capital is the Company's Investment Adviser.
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