Sainsbury (j) Share Discussion Threads

[debsdowner] 25/9/2022 11:12

Sainsburys selling some freeholds and then renting back is a bad move.

[bountyhunter] 24/9/2022 13:52

It looks like I timed my entry point here wrong, I should have waited! 6.8% yield now.

[konradpuss] 23/9/2022 19:31

Loganair, I am not one to diversify, however I wonder if you should think of selling some when/if the market and share price pick up? Don't ask me when!

I do think Spring next year, energy prices will be much lower and the war might be ending. Now that is a bullish prediction.

[claret dragon] 23/9/2022 10:00

Sentiment is awful everywhere.

Two structual gaps at 191.95 then 180.4 are close now

Covid low now in sight.

[loganair] 23/9/2022 09:24

My concern is, as a Sainsbury's share holder and the highest possible dividend as the majority of my income now comes from the dividends from my share holdings therefore I need Sainsbury's to be as profitable as possible.

[spob] 23/9/2022 09:06

Second rise this year at Lidl makes it best-paying UK supermarket



Lidl is increasing staff wages for the second time this year in a £39.5m investment that propels it to the top of the supermarket pay league table.

Entry-level hourly rates will increase from £10.10 to £10.90 outside London and from £11.30 to £11.95 within the M25 that circles the capital.

[blackhorse23] 23/9/2022 08:40

https://www.google.com/amp/s/capital.com/amp/cury-currys-share-price-double

[dipa11] 22/9/2022 17:39

-MA (50) 212.39-MA (200) 235.42-RSI (14) 38.80Good evening and good luck

[keyno] 22/9/2022 08:03

Sbry should stick to selling butter and leave making business deals to "them that knows"..........

[wllmherk] 22/9/2022 08:01

Almost as mad as giving away billions in aid to Ukraine keeping the war going whilst millions of UK citizens can't put their heating on or afford food due to the very conflict they are helping to maintain. These have been on my watchlist for a while, tempted by the dividend, but, I can see them getting much cheaper in the coming months along with everything else.

wllm :)

[m_kerr] 21/9/2022 21:37

alot of fees are incurred in these transactions, for sure. they're not straightforward as part of the value is in the property, part in the income stream, and there's haggling over how onerous the lease terms are. they'll probably have first refusal over buying back, but set at a level that ensures a handsome return for LXI.

[konradpuss] 21/9/2022 19:40

m_kerr, maybe the new 'sale and leaseback' has a buy back provision?

The lawyers will be making a buck as will the government via the SDLT.

Not sure any of this is good for the shareholders.

[m_kerr] 21/9/2022 18:02

they're doing the sale and leaseback to buy back the other portfolio of stores, which they've probably decided is the better bet. what they appear not to have considered is they could either borrow to buy them out (cheaper), or cut the dividend to fund it, either of which is a much better decision than another s&l. the way land values are going long term, a SBRY with high freehold ownership could be a rock solid business throwing off cash, underpinned by rising property prices.

so a truly baffling capital allocation decision, but that's the story of the UK listed supermarkets. a lesson in how not to allocate capital. the outcome of that is plain for all to see in the share price.

compare the shareholder returns of the REITs they sell to in the last 5 years or so. they do zero work, other than collect rent, and make a higher return on capital than the supermarkets themselves. consider all the work and risk they take, the fact that the REITs get paid before SBRY shareholders, and decide which business as investors you want to put your bets on.

[spob] 21/9/2022 10:11

They don't give the cost of buying back the 21 shops

Top Secret


(I guess it's a lot more than they sold them for originally)


I wonder why they need to do these daft transactions. It's a bit like someone having to pawn the family silver to keep the lights on when very short of cash.

[spob] 21/9/2022 10:07

selling 18 shops this year

and buying back 21 next year

[loganair] 21/9/2022 08:32

As Sainsbury's know that rents are likely to go up 10% this year and interest rates on their debt is also going up, by selling some more of their Freeholds for £500mln will help pay for this.

Only a short term measure as the rents on the Freeholds they're selling will also go up by the rate of inflation therefore only a short term fix while being long term negative.

And the idiots gave back to the government all their free covid money in order to virtual signal and look good.

[dipa11] 21/9/2022 08:17

4% Shorting and dividend paying plus @ bottom price making worth to investment for few months and better returnMost important Safe HavenGood morning and good luck

[pjleeds] 21/9/2022 07:50

What may they do with 500m

[smurfy2001] 21/9/2022 05:40

Terrible idea to sell the Crown Jewels.

[loganair] 20/9/2022 21:58

As I've been posting for 18 months, next stop 180p, then 150p, even though at the time many posters were pooh-poohing me as ridiculous.

It seems to me, out of the big 6 supermarkets, Sainsbury's is now in the weakest financial position.

[creditcrunchies] 20/9/2022 21:37

I wondered what spooked investors this type of move doesn't work long term it's a short term sticking plaster imo

[konradpuss] 20/9/2022 21:18

Loganair, agreed, selling freeholds is a very big mistake. Borrowing too much against them is another big mistake.

What has Tesco being doing, buying their store freeholds back when they can.

[loganair] 20/9/2022 20:35

Sainsbury's selling more of their free holds....


LXi REIT, a commercial property investor which is part of the FTSE-250 index, is expected to raise equity to fund the purchase of nearly 20 Sainsbury's freeholds at a cost of £500mln.

Supermarket groups are under pressure from investors to improve the efficiency of their balance sheets, with both Asda and Wm Morrison having been acquired by new owners in the past two years.


When Sainsbury's lease back these properties usually the rents increase by the rate of inflation. With inflation currently running at circa 10%, in the end this is going to cost Sainsbury's a packet of money.

Morrisons had circa 90% plus free holds, ASDA had over 70% with Sainsbury's as low as owning 30% Freeholds who would want to take them over as they have very few assets to strip, to sell by any take over party in order to reduce the debt of the taking over.