Supermarket Income REIT gets tailwind from buoyant grocery sector
- Supermarket Income adds M&S to tenants as it buys six more sites
- Supermarket Income REIT comfortable on busy grocery store sector
- Supermarket Income REIT: Broker remains bullish after debt deals
- Atrato Capital, the investment advisor to Supermarket Income REIT explain recent rise in inflation
Quick facts: Supermarket Income REIT PLC
Price: 117 GBX
Market Cap: £948.89 m
About the company
Supermarket Income REIT plc is a real estate investment trust dedicated to investing in supermarket property forming a key part of the future model of UK grocery.
The company provide investors with long-dated, secure, inflation-linked income with capital appreciation potential over the longer term.
How it is doing
Excluding acquisition costs, the sites are being acquired on a combined net initial yield of 4.6% and from several vendors including Land Securities, a Janus Henderson fund, London Metric Property plus others.
Ben Green, director of Atrato Capital the investment adviser to Supermarket Income, said: "These acquisitions provide geographic and tenant diversification, with the purchase of our first M&S Foodhall, as well as exposure to a number of high-quality omnichannel supermarket assets.
It arranged a £61.3mln expansion to its revolving credit facility (RCF) with Wells Fargo, added £20mln to its secured term loan with Deka and agreed an one-year extension alongside a £10mln hike to its RCF with HSBC.
Insight: Supermarket Income REIT comfortable on busy grocery store sector
Negotiating rents has been one of the key issues during the coronavirus crisis: most landlords have been accepting rent deferrals or offering discounts altogether to help their tenants.
What the brokers say
Peel Hunt has restated its ‘buy’ rating and 125p price target for shares in Supermarket Income REIT PLC (LSE:SUPR) after the property investment group negotiated further headroom with a trio of debt providers.
In a note to clients, the City broker said: “The company has only spent around £63mln since the £153mln equity placing in March.
“Therefore, combined with the recent news that Sainsbury’s has exercised an option to acquire 13 stores from the company’s JV and today’s announcement, the company now has significant capital for acquisitions.”
What management says
Supermarket Income REIT's (LON:SUPR) Ben Green talks to Proactive London' Katie Pilbeam about the reasons behind the recent rise in UK inflation.
The annual UK inflation rate more than doubled in April, as a rise in energy and clothing costs drove prices higher.
He says for investors they are wondering if this is temporary or sustained and how to protect their portfolios.
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