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.”
The stock, steady at 119p, is currently trading at around a 14% premium to its net asset value while offering a 4.9% dividend yield.
The real estate investment trust, which aims to provide secure, inflation-protected income from grocery property in the UK, will provide a substantive update alongside its interims on September 23.