Shares in Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) were range-bound after the acquisition of a Sainsbury store, and its capital recycling pledge.
The deal to acquire the property in Huddersfield, West Yorkshire, will cost the group just under £50 million - but it will receive a rental yield of 7.6%, which broker Peel Hunt reckons is around 1.8 percentage points higher than it receives from its broader portfolio.
Analysts welcomed the REIT's decision to consider individual asset disposals and joint ventures as part of a commitment to wider capital recycling which could include using the proceeds store sales for share buy-backs and acquisitions.
"This also follows on from the recent decision to switch its adviser fee (Atrato) from the traditional net asset value (NAV) basis to a market capitalisation basis," said Shore Capital.
"This type of arrangement has long been sought by shareholders in all externally managed REITs - particularly where share prices sit at material discounts to NAV."
Both Peel and Shore are 'neutral' on the stock. Stifel, meanwhile, is more bullish with a 'buy' rating and a 100p price target. It notes that Supermarket REIT's dividend yield is a sector-leading 9%.
"Today's acquisition and the current strategic changes to include European assets, augmented with a reduced external management fee, show the efforts of management to drive earnings growth," the American bank said.
The shares were barely changed at 68.2p.