Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) is “walking the talk” with its latest Tesco acquisition, reckon analysts at Shore Capital Markets.
The London-listed investment trust bought the 54,000-square-foot omni-channel store for around £35 million, hot on the heels of its recent commitment to deploy existing debt capital into value opportunities with shorter lease terms.
Shore Cap said the deal “should be immediately earnings accretive and also enhance NTA once the opportunity to regear the existing lease term arises”.
Analysts added: “With an undemanding portfolio LTV of 33%, 3.1% average cost of debt and c.£65m of undrawn debt, SUPR remains well placed to evaluate strategic further acquisitions given the current attractive margins between new debt at c.5.5% and selected acquisitions currently yielding over 7%.”
They also pointed out Supermarket REIT’s restructured balance sheet, LTV reduction and an “expected stabilisation of asset values” to support the group’s investment thesis.
At 78p per share, Shore Cap currently has a ‘hold’ rating on the stock.