Supermarket Income Reit Share Discussion Threads

[return_of_the_apeman] 26/1/2025 20:18

X-div on Thursday, base rate cut the Thursday after

[mister md] 25/1/2025 17:31

Found this fairly recent fool article re: both
SUPR and SEIT (SDCL).

[gary1966] 25/1/2025 17:24

Depends on your take of the USA. Nearly 2/3rds in USA but they run a very diversified portfolio in all the countries that they operate in.

[mister md] 25/1/2025 17:11

Gary1966 - thanks. SEIT looks interesting.

[skyship] 25/1/2025 16:48

nick - you state: "Yes the divi doesn't grow but as long as its not shrinking where's the downside."

Actually they manage to increase it by 1% every year, yr on yr since listing.

6.06p last year, 6.00p the year before. Looking like 6.12p for this year.

[adam] 25/1/2025 14:14

Aren’t they too heavily invested in the USA?

[nickrl] 25/1/2025 14:10

@wilwak in the short term minimal borrowings need refi but accept in couple of years some bigger loans will need to be replaced but its quite possible rates will have dropped back and even if they haven't the index linking of rents will cover the difference. Yes the divi doesn't grow but as long as its not shrinking where's the downside.
For transparency its one of my biggest holding and I keep reinvesting divis.

[gary1966] 25/1/2025 14:09

adam,

Sorry that was meant to be SDCL Energy Efficiency Income Trust, ticker SEIT. Will edit my original post.

[adam] 25/1/2025 13:21

What is SDIC?

[gary1966] 25/1/2025 11:38

NESF potentially has a finite life as solar panels and batteries don’t last forever. For this reason I would say SDCL Energy Efficiency Income Trust, SEIT, is a better bet.

[mister md] 25/1/2025 11:16

Looking at NESF - similar type of scenario ?

[1knocker] 24/1/2025 20:42

You have hit the nail on the head, wilwak.

[wilwak] 24/1/2025 20:20

1Knocker…. There’s certainly not much excess dividend cover if any.

The earnings are enhanced by the gearing.

The biggest risk is that the cost of borrowing increases.

Looking at the likes of RECI too it seems the market currently wanting 9%+ on such shares so SUPR price is consistent with others.

[1knocker] 24/1/2025 17:45

It looks to me as thoiugh the market is not confident tha the dividend can be maintained, let alone increased.

Even if you take the dividend as a percentage of NAV rather than the SP, it is still pretty high. Is it higher than the net rental yield on supermarket premises?

[marktime1231] 24/1/2025 17:00

Added this afternoon, hopeful for a bounce

[1dirtysteve] 23/1/2025 23:21

I added too. Another 40,000. Really hoping this is the lowest too.

[mister md] 23/1/2025 16:26

Added further at 66.0p today - hopefully the lowest price I'll get ;-)

[crumppot] 23/1/2025 16:23

but they will still be able to pay the rent

[igoe104] 23/1/2025 16:09

Sainsbury’s will be cutting staff too cover the shortfall for all these increased N1 contributions...

[spectoacc] 23/1/2025 14:06

@Farmers Son - it's so they can afford the rent to SUPR ;)

[marine boy] 23/1/2025 13:55

Always happy to buy shares below Directors' purchase price.

[farmers son] 23/1/2025 12:30

The Sainsbury’s job cuts being reported probably aren’t helping the current sentiment

[alan pt] 23/1/2025 12:13

SUPR on the Winterflood picks list:

"Supermarket Income (SUPR) was also added to the list as a ‘buy’ given its specialist exposure and ‘supportive fundamentals’.

The £823m trust buys up ‘omnichannel’ stores – which are used not just as grocery stores but also fulfilment hubs for online orders – meaning it ‘benefits from the structural trend of e-commerce growth’.

‘These supportive fundamentals ensure affordability of rents for the fund’s tenants, as well as driving market rental growth, particularly for omnichannel stores,’ said Bird.

The trust enjoys a 100% rent collection rate and a fully covered dividend, which has been increased every year since launch in 2017, helped by the fact that 80% of the rental contracts are inflation-linked.

‘Supermarket’s current discount of 24%... offers significant value relative to history,’ said Bird.

‘We think that there is scope for a rerating, given the stabilising underlying valuations, supported by a more benign interest rate environment, with the fund’s relatively large size… making it a likely beneficiary of an improvement in sentiment towards property as an asset class.’"

[rimau1] 23/1/2025 10:46

I can't believe the rating here. So what is the bear case, presumably the macro is rising gilt yields will indirectly result in more write downs and a further fall in portfolio NAV. Then specifically leverage gets closer to 40percent so funding further growth becomes more problematic. The expansion i to France i suppose assumed peak rates. Like every reit and property stock this needs rates to start falling. I have taken some this morning too for the SIPP. Tough watch though. My recent high conviction buy over at Shed at 107 is looking sick too so ignore me lol

[nickrl] 23/1/2025 10:30

Taken a few more 65.8 given i convinced myself in my post above that the downside is low not that stopped them retreating!