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Share Name Share Symbol Market Type Share ISIN Share Description
Supermarket Income Reit Plc LSE:SUPR London Ordinary Share GB00BF345X11 ORD GBP0.01
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  1.00 0.83% 121.00 120.50 121.50 121.00 119.75 119.75 1,092,237 16:22:47
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment Trusts 0.0 32.8 9.8 12.3 981

Supermarket Income Reit Share Discussion Threads

Showing 251 to 275 of 550 messages
Chat Pages: 22  21  20  19  18  17  16  15  14  13  12  11  Older
DateSubjectAuthorDiscuss
08/1/2021
16:45
The credit de-linked argument works if it's just Tesco that blows up - but if Tesco blows up its more likely to be because somethings gone wrong at a wider industry level - eg it's could be like arguing that Debenhams will replace house of Fraser I can see little though that's going to go wrong here in the next 3-5 years - as always with long leased commerical property, the reversion can be when your "inflation" linked bond goes a little Argentinian The yield differential over logistics is c150bps, and forgetting about inflation, if we are in a long term deflationary cycle then there's a lot of capital growth room
williamcooper104
08/1/2021
15:36
In the past 324 months (27 years) the rate of inflation (RPI) has exceeded the average cap rate around 10% of the time. Has been lower than the floor rate (averaging just over zero) less than 1% of the time. They have struck these levels about right, but that is not surprising as Steve Windsor is quite capable of getting the net value of these two options (short the cap and long the floor) from his prior (significant) capital market experience (I should know - he used to try and flog things to me). CPIH caps are lower at 3%, but this rate averages 1% lower anyway. This 10% figure is pure data mining, however, as prior to 1993, things would not have been so rosy - nevertheless, upon a resurgence of inflation I imagine the caps would be raised somewhat which would have long term benefit (like insurance companies raising catastrophe premia post a catastrophe - best time to buy the shares of these companies!). I would not really compare this investment with that of a fixed bonds, anyway. You can, but look at where UK inflation linked Gilts are priced - at nominal Gilt Yields MINUS 292bps. You'd better hope for biblical inflation to buy these assets. Take the 2027 Gilt linker - a coupon of 1.25% plus inflation, but paying a price of 131.9% of par. SUPR has a "coupon" of 5.86% + "inflation". So whatever dents to the true inflation uplift, the added risk (including credit) is easily compensated for (which is also the clearly stated company view, FWIW). Worth bearing in mind that the WAULT is 16 years and that the income streams from the tenants are likely closely aligned with RPI. Talking about credit risk, the 10yr CDS level on TSCO is 137bps, so is a reasonable measure of added risk. That said, I would think that a failed credit could be replaced in short order but potentially with a loss of some value, but nowhere equal to the whole of the expected loss indicated by 137bps pa. I have bought quite a lot of these, consequently.
chucko1
08/1/2021
14:29
5.43% yield at £1.08 with inflation linked upside, sleep well :-)
return_of_the_apeman
08/1/2021
12:33
The mini bonds were an accident waiting to happen 100 percent property development lending to developers who can't financing from anyone else What could go wrong
williamcooper104
08/1/2021
12:32
Sorry - car parks potentially give development upside in that if we go fully last mile logistics and the supermarkets convert to warehouses - then they don't need the car parking
williamcooper104
08/1/2021
12:31
Some inflation protection - remember the PV of the lease - which is the true inflation asset is c50-70 percent of the total property value - the reversion - eg value of the property when the lease expires - is not automatically linked to inflation - it might be - but it might very much not be - it's better than a long bond which is most certainly murdered by inflation The leases themselves mostly have inflation caps too So it's got a degree of inflation protection - and will do very well if inflation is moderately above expectation The properties though are generally in good locations and the car parks givesevelomeng upside
williamcooper104
08/1/2021
12:17
Always some risk, but risk-reward is very good. The inflation-protection aspect may prove to be critical, although different economists have inflation outlooks all over the map (and beyond).
chucko1
08/1/2021
12:14
PDT - I'd agree with you, but for the fact that a great many savers will not touch "stocks & shares" (even more in Germany). These people can't stomach any risk, but a lot were drawn into mini-bonds thinking they were safe, like building society bonds! An added bonus - supermarkets seem to have traded well recently.
jonwig
08/1/2021
12:08
I thought of Supermarket REIT while I was watching Martin Lewis on TV last night. He was excited to tell viewers about the top paying 1 year fixed rate from a bank I had never heard of, the rate was a massive 1%. Second best was from Atom Bank paying 0.6%. He them said something like 1% is so good it won't hang around for long. Compare that to the REIT paying 5% over the next year at the current price of 108p. Inflation protection from rent reviews in the future. Tenants paying 100% of rent due. Supermarkets have had a massive and likely sustained boost to online making their omnichannel premises even more important. My view of the world is that interest rates and inflation will remain low for a number of years ahead. In the short/medium term this REIT seems great value for a relatively safe return or am I missing something?
pdt
06/1/2021
16:44
Waverton increasing holding:- https://www.investegate.co.uk/supermarket-inc-reit--supr-/rns/holding-s--in-company/202101061324348054K/
cwa1
30/11/2020
20:50
Think it's 4.5 yield for c20 years term income
williamcooper104
30/11/2020
17:10
30 November 2020 SUPERMARKET INCOME REIT (the "Company") LEI: 2138007FOINJKAM7L537 Statement RE PRESS COMMENT Further to recent press commentary, Supermarket Income REIT (LSE:SUPR) the real estate investment trust providing secure, inflation-protected, long income from grocery property in the UK, confirms that it is in discussions to acquire two assets from an institutional investor. The Company will make further announcements in due course, as appropriate. There can be no certainty that the acquisitions will be agreed nor as to the terms on which any transaction might be conclude
cwa1
30/11/2020
11:00
The longer term downside on market rental growth here is likely to be business rates - which are likely to be hugely re-weighted away from high street retail towards logistics and probably super markets too
williamcooper104
30/11/2020
10:56
I don't think the official statistical agency will calculate itTechnically they've stopped using it in 2013 but have calculated it since as it's commonly used But come 2030, I think, it will no longer be calculated, officially
williamcooper104
30/11/2020
09:59
From CG Asset Management. Capital Gearing Trust. “With index-linked bonds and credit yielding so little, we must look elsewhere for returns. We have been at- tracted to long-lease UK property which has charac- teristics of both. We recently participated in a plac- ing by Supermarket REIT. As the name suggests, this owns a portfolio of supermarkets on long leases prin- cipally let to Sainsburys and Tesco. The portfolio has a yield of 5%, index-linked, with a lease term of 16 years. Consequently around 70% of the NPV of the portfolio relates to an index-linked cashflow where the obligor is one of the major UK supermarkets. The headline spread to index-linked gilts is an attractive 7.5%. There is a prevailing view that, come the end of the leases, these portfolios will be over-rented which will serve to reduce the returns: that juicy spread will not then be all it seems today. Ultimately the residu- al value, and therefore future rents, will relate to land prices. The portfolio is largely situated on the edge of prosperous towns around the British Isles. This is a crowded island so while the possibility of over-renting gives us cause for concern, the long term prospects for these assets seems well underpinned. These, and other similar assets are being introduced to the portfolio, part as replacement for index-linked bonds, part as replacement for corporate credit. This approach is not without risk. While we expect these securities to have low correlation to equities, in times of crisis these correlations will rise to one. To compensate for increasing risk in this element of the portfolio we expect to run the portfolio with higher cash balances. Taken together our portfolios will prove somewhat more volatile than in the past, however the higher cash balances should ensure the fund is well placed to exploit such volatility.”
brexitplus
30/11/2020
07:32
It is - but many (though crucially not all) commercial property leases contain compensation clauses for the definition changing It's academic on a 10 year lease - though 10 years of old RPI is better than the 5 years that had been widely assumed On a 20 year unexpired lease term it should (with right lease provisions and assuming lawyers haven't screwed it up) mean a meaningful increase in rent/compensation payment
williamcooper104
30/11/2020
06:43
William - I thought it was a new policy to phase out RPI in favour of CPI from 2030. So all RPI-related contracts will change.
jonwig
30/11/2020
02:14
RPI going to fall by c70-100bps after 2030 - as a basic maths error is corrected But most commercial property leases with RPI linked rents contain compensation clauses for material changes to the index Not sure how many of SUPRs leases have this protection - but it's fairly common (though I've seen many dodgy/incorrectly drafted RPI rent review clauses so a lot depends on detail and lawyers understanding maths) If SUPR does have this protection then the relative value over index linked gilts just got a lot better
williamcooper104
28/11/2020
17:23
Or course DYOR
williamcooper104
28/11/2020
16:54
Last valuation yield was 5 percent I'm guessing next one to be c4.25/50 With gearing ought to get NAV to c1.15-20
williamcooper104
25/11/2020
18:42
Sainsbury's in North London - with 17 years on the lease - just traded 10 percent above asking price at 3.75 percent net initial yield We are going to see valuation gains here
williamcooper104
17/11/2020
08:51
Indeed a combined net initial yield of 6.4% and "we believe this site offers valuable asset management opportunities." :-)
return_of_the_apeman
16/11/2020
07:13
RNS. Further acquisitions. A tesco omnichannel and an Aldi in Beaumont Leys, Leicester have been acquired.Keep at it SUPR!
metaltrack
03/11/2020
09:31
Still encouraging that in this sell off defensive REITs/infra hasn't fallen as much as it did in March
williamcooper104
30/10/2020
08:36
bought a few here - will add on any weakness
mister md
Chat Pages: 22  21  20  19  18  17  16  15  14  13  12  11  Older
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