Supermarket Income Reit Share Discussion Threads

[williamcooper104] 05/1/2022 12:39

Good acquisitions Looks like should be c5.5-5.8 cash yield (after debt and management fees) The Asda store is on a 40 percent building/plot coverage ratio The Wasthington site at 11.7 acres is only c15 percent covered

[ramellous] 05/1/2022 10:46

I not far from the Washington Sainsbury’s. I’ll have to check out theTim Horton’s. That’s a Canadian chain right? I didn’t know they had started expanding over here.

[bscuit] 05/1/2022 10:32

Slightly off topic –

I started this thread in November 2017 and there has never been any trolling or the like and it is taken that time to achieve 743 posts. There are some very high quality posts. Thanks to all the knowledgeable people for helping my understanding.

I wondered this morning whether there were any other threads and found that somebody made a probably abortive attempt to start another one just before Christmas, but jonwig suggested that this was a perfectly good thread to cover SUPR.

The family still hold and we have taken part some of the placings.

[makinbuks] 05/1/2022 09:35

Interesting that the Sainsburys site includes two stand alone fast food outlets. I wonder how many sites have the capacity to make similar additions? Drive throughs appear a booming market.

Could be an interesting adder, similar to the solar panel deal

At 10 years the Asda deal is short. If they revamped it in 2015 and are currently expanding the online delivery bays its unlikely they will not renew. It will be interesting to see what can be achieved on the extension

[brexitplus] 05/1/2022 09:05

And both at a good price.

[paulisi] 05/1/2022 08:03

Two more acquisitions and a new debt facility.

[cwa1] 04/1/2022 16:49

Damn, someone has found my super secret source :-)

[alan@bj] 04/1/2022 16:43

Q2 Interim announced 10th January - ex-dividend 20th January - payment late February.

[chucko1] 04/1/2022 16:39

??? In 2018, the ex-div was Feb 15th.

What does it matter, any way?

[return_of_the_apeman] 04/1/2022 13:18

Thanks all, seems I was overly optimistic :-)

[chucko1] 04/1/2022 13:07

It is due to go ex-div on Jan 27th.

[ramellous] 04/1/2022 12:57

Last few jan ex divis have been around 15th to 21st

[cwa1] 04/1/2022 12:45

No, it doesn't r-o-t-a

[return_of_the_apeman] 04/1/2022 12:37

Does this go x-div this Thursday/Friday?

Thanks in advance to anyone who knows

[brexitplus] 20/12/2021 08:17

ACQUISITION OF A TESCO IN SHEFFIELD FOR £73.2 MILLION



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 in Sheffield, Yorkshire, for a purchase price of £73.2 million (excluding acquisition costs), representing a net initial yield of 4.5%.



The store was developed for Tesco in 2011 and occupies a 7.0 acre site comprising an 88,000 sq ft net sales area supermarket, a 12-pump petrol filling station and 640 car parking spaces. The store serves as a hub for omnichannel fulfilment in the region, operating 14 home delivery vans and click & collect functionality. The asset is being acquired with an unexpired lease term of 17 years, with annual, upwards only, RPI-linked rent reviews (subject to a 4.0% cap and 0.0% floor).

[rambutan2] 16/12/2021 16:42

Noted:

Accretive £58.9M acquisition let to Sainsbury's...

[williamcooper104] 16/12/2021 16:11

And SBRY stores, mostly omni-channel and quite simply being the ones SBRY wants to own, and on 20 year leases Have to be at the prime/tight yield end of the market

[tibetan terror] 16/12/2021 15:32

William Cooper - completely agree with your assessment. According to data from one of the main consultancies, prime supermarket yields have come in 75 bps from Dec 20 - Dec 21 and are now trending at 3.50%. The assessment is that the trend has further to run. There is so much to like about the investment thesis here, far more attractive than leaving the money in a savings account!

[williamcooper104] 14/12/2021 01:39

Edison's valuation of the SBRY reversion looks conservative They value 20 years of income with open market reviews at 4.5 4 percent feels fairer

[cwa1] 13/12/2021 15:59

Edison research:-

[chucko1] 09/12/2021 13:33

As usual!

The most interesting things was perhaps the fact that they look for properties with substantial space, which, if developed wisely, can more than double the turnover of the supermarket. And they pointed out that rents and turnover in this industry had a pretty linear relationship.

These people are totally on the ball.

[brexitplus] 09/12/2021 13:29

Excellent presentation yesterday.

www.investormeetcompany.com/investor/meeting/quarterly-update

[jg231] 06/12/2021 13:39

I can see the 7.1% under charges on the HL website under the costs tab.
I can only think that these figures come from the KID, where some rigid rules create odd results.

I agree with @Rikshaw that ongoing charges appear to be about 1.2%.

But in addition, the KID includes costs of borrowing and acquisition costs. Sensible levels of gearing increase returns, so it seems really odd to suggest that finance costs reduce them? Also, SUPR is a REIT buying UK property, so it usually pays SDLT at 5%. This is clearly a one off cost for each acquisition and goes through NAV as a capital item, so it's double counting to treat it as an on-going cost.

Hargreaves just aggregates the numbers from the KID without any explanation. The AIC has been pushing for reform for a long time:

[rik shaw] 05/12/2021 17:13

HL Factsheet for this share quotes on going charge of 1.18% which is not untoward for a REIT so not sure where you are finding 7%