Supermarket Income Reit Dividends - SUPR

Supermarket Income Reit Dividends - SUPR

Stock Name Stock Symbol Market Stock Type
Supermarket Income Reit Plc SUPR London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
-0.50 -0.48% 104.50 12:17:06
Open Price Low Price High Price Close Price Previous Close
105.00 103.00 105.50 105.00
more quote information »
Industry Sector

Supermarket Income Reit SUPR Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

Top Posts
Posted at 09/11/2022 09:51 by chucko1
Yes, you are correct. If you listen to that segment, the presenter goes on to explain how this flows into the IRR you can expect from differing rates of inflation, using their cap rate (circa 4%) as the upper bound.

A share price of 104p indicates around 5% although that is nominal, and nominally, they have modelled 9.5%.

Clearly GLG may have a different view! - they have now built up their short position further to 1.0%.

My own view is that investors seeing inflation as a risk for SUPR would do well to view the presentation. I have always seen it as a slight positive, and certainly not a reason to see a 20% drop. That said, underlying linkers were obscenely mispriced and I say that independently of the recent pensions debacle.

Posted at 22/10/2022 07:51 by jong
Quote from above Citywire article

"Hawksmoor investment managers have cleared property trusts from their portfolios to make way for corporate bond funds whose yields have dramatically improved after big falls in fixed income securities.

Citywire A-rated Daniel Lockyer and Ben Conway and co-manager Ben Mackie have slashed exposure to real estate investment trusts (Reits) and real asset funds across their flagship Distribution fund and stablemates, £228m Vanbrugh fund and £38m Global Opportunities portfolio.

The trio have ditched a raft of Reits, with exposure to property in the £136m Distribution portfolio now 9%, having peaked at 21% in the first quarter of 2020.

Disposals included Supermarket Income (SUPR), which was added to the multi-asset portfolios in 2019 as it snapped up large supermarkets leased to the likes of Tesco and Sainsbury’s.

However, the post-Budget crash in UK government bonds, or gilts, pushed many of their yields to over 4%. That’s a challenge for Reits as gilt yields represent the market’s forecast of where interest rates will go, which implies higher borrowing costs for the funds as well as falls in the value of their properties.

While the managers watched SUPR soar during the pandemic, they have now sold the entire stake as rising bond yields caused the stock to slide 20% in the past three months. The previously premium-rated shares have fallen to a steep discount of 14.5% below their net asset value.

‘We rate the management team extremely highly but when the portfolio is valued off a yield of 4.5% that does become problematic when you have a risk-free 10-year gilt yield of 4.5%,’ said Mackie.

‘Some of the selloff in real assets has been rational and we have seen really big discounts blowing out in Reits.’"

Posted at 28/9/2022 21:32 by epicsurf
Master investor
With the shares now trading at around a pound the target dividend of six pence gives them a prospective yield of six percent, which is fully covered by earnings and benefits from a significant element of inflation-linkage. The latest pro forma EPRA NTA of 111 pence puts the trust on a discount of 10% that looks attractive given that it has been trading at an average 12-month premium of 10%.

Positive fundamentals

In the accounts to the end of June the fund achieved like-for-like rental growth of 3.7% with 81% of the leases being inflation-linked, albeit with caps and floors. Of these, 73% are linked to the higher Retail Prices Index (RPI) and eight percent to the Consumer Prices Index (CPI), with two percent subject to fixed reviews and 17% to open market rent reviews.

The broker Winterflood says that this high level of inflation-linkage is particularly appealing given the current inflationary backdrop, while the rental uplift caps, which average four percent, ensure that the rents remain affordable for tenants. In fact, the underlying supermarket sales growth is now outpacing contractual rental growth, which makes the rents even more affordable.

Despite the inflation-linkage and the healthy growth in rent and EPS, the dividend was only raised by one percent to 5.94 pence, with the target dividend increased by a similar amount to six pence per share. This is clearly disappointing for investors, although the caution is probably warranted in the current environment and the prospective six percent yield remains attractive, especially as it is fully covered by earnings.

The debt is fully hedged

The managers have taken the decision to fully hedge the drawn debt to achieve an effective fixed rate of 2.8% until 2026, which gives the fund a conservative pro forma loan to value ratio of 31%. In the current economic environment this looks like a sensible move and should enable the fund to benefit from both the level and predictability of earnings going forward.

During its last financial year the trust was able to successfully raise £506.7m of new equity via two upsized and oversubscribed share issuances, which shows the level of demand for this unusual asset class. It also continues to expand its portfolio with a further five assets purchased for £216.1m post period end.

Winterflood expects SUPR to continue to deliver strong total returns over the coming years on account of its focus on omnichannel stores, which ensures that it benefits from the structural trend of online sales growth. They also point out that the non-discretionary nature of grocery demand means that the sector is likely to prove resilient in the current challenging macroeconomic environment

Posted at 26/9/2022 11:15 by chucko1
Yup - just bought a few more of those exact things. Still want to keep the duration short, but creeping a little further out. Even 1 year has been a risky proposition of late.

Worth considering that SUPR will see the effects of inflation gradually come through in the next few years as leases gradually reprice (for inflation). They have fixed on the liability side for 4 years. So even if rates have not abated by then, the inflation effects will be coming through and so they re likely to retain the margins they currently have. In the mean time, I expect the margins to increase.

But, as we have seen with RECI this morning, logic is playing a small part for now. It has a 2ish year average life on its lending, so its 7 point move this morning implies a yield adjustment of hundreds of basis points. And yet no movement at all on VSL. Or SUPR this morning (at least).

I expect that buying certain things now will be rewarding, but not if you are not prepared to stick with it for longer than one is usually used to doing.

Think of it - negative real rates for years. How did anyone NOT expect it to end in tears?? Only QE kept the bubble inflated.

Posted at 26/9/2022 06:28 by cwa1
And one form SUPR themselves:-


Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust providing secure, inflation-protected, long income from grocery property in the UK, announces the acquisition of a Tesco supermarket, an Iceland Food Warehouse and complementary non-grocery units in Bradley Stoke, Bristol, for a total purchase price of GBP84.0 million (excluding acquisition costs), reflecting a net initial yield of 5.6%.

The 19.8 acre site includes a 74,717 sq ft net sales area Tesco supermarket with a 16-pump petrol filling station and 925 car parking spaces. The store is an online hub for Tesco, operating 20 home delivery vans and a dedicated Click & Collect facility. Tesco has operated at the site since the 1980s and through an extensive refurbishment, expanded the store in 2007. The site also includes an Iceland Food Warehouse and further complementary units providing convenience and health services with tenants including Boots, Greggs, Costa Coffee and Pets at Home.

The site is being acquired from CBRE Investment Management. The Tesco store has an unexpired lease term of 14 years, with annual, upwards-only, RPI-linked rent reviews (with a 3.5% cap and a 0.0% floor).

Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT plc, said:

"We are very pleased to be adding this top trading omnichannel Tesco store to the portfolio together with the complementary essential retailers at this site."

Posted at 22/9/2022 15:09 by chucko1
These car crashes + Risk Management + Patience = Higher Future Returns.

For me, 2yr gilts at (now) 3.51% is in itself a TIRA (R = reasonable). Although I am losing in real terms, I am losing far less than hanging on to the likes of REITs yielding only 1% higher.

Furthermore, it provides the liquidity to buy things like SUPR, SREI and one or two PE stocks which are getting exceptionally trashed, seemingly on account of a needy seller in some cases.

On SUPR, I am confident their interest rate hedging and general inflation linkage will see a gradually increasing dividend.

Posted at 21/9/2022 13:14 by income investor
If you look at the annual results presentation, page 50 has a graph comparing SUPR TSR with the All Share TSR since SUPR's IPO. If I have read it right, SUPR TSR goes from 100 to 125 in this time, whilst the All Share has gone to 155! Appreciate you get a good dividend from SUPR and perhaps I should expect as a high yielding property play it is always likely to underperform the All Share?
Posted at 17/7/2022 13:32 by tas11osc
Are SUPR dividends subject to UK income tax of 20%?
Posted at 06/6/2022 09:12 by chucko1
Odey SWAN has also been half its current value with, on average, twice the volatility of SUPR. SWAN has only in recent months, not for a large percentage of either 3 or 5 years, had the mega-short in Gilts.

The drawdown on SWAN has been as high as 62% (2016/17), and roughly 15% (March 2020) on SUPR.

Over any period, SWAN has paid no dividends whereas SUPR has paid out 27p or so over the past 5 years.

One might also say that wine has gone up by a similar amount. (of course, different wines pay differing dividends!)

Posted at 30/5/2022 16:01 by chucko1
Very odd - I have received SUPR dividends in all my accounts except my SIPP. All accounts are with HL, whose accuracy and service appear to be deteriorating. They keep filling in forms incorrectly for a separate pension transfer, with no end in sight.

They always turn up eventually, unless it is Barclays "Smart Invest".

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P: V: D:20221207 13:18:17