Supermarket Income Reit Share Discussion Threads

[jg231] 26/4/2022 16:22

I think the deal is that ROOF owns the panels, the occupier of the building buys the electricity and ROOF pays a licence fee to SUPR (small number). Big benefit for SUPR is happy tenants and positive environmental credentials. I think they said panels on the roof can be worth one notch on the Energy Performance Certificate - so could take an EPC C to an EPC B.

[bountyhunter] 26/4/2022 13:06

and I thought we had left the EU;
Yes CWA, no doubt will result in being scaled back significantly on PB, especially as the price has just shot up! 😉

[nimbo1] 26/4/2022 12:34

Pleased to buy in yesterday now. These asset backed income trusts are always a very solid buy on the fund raising news / lows, or have been so far! Same for GSF and DGI9

[cwa1] 26/4/2022 12:05

Thanks for the info. It's a shame the PB tranche is so small

[bscuit] 26/4/2022 11:44

The EUR size is a legal limit. The PB placing is a PR action. It cannot be increased.

[bountyhunter] 26/4/2022 11:00

"Aggregate demand under the PrimaryBid Offer will be limited to EUR 8m (or the equivalent), as is legally required."

Unless it's been affected by the scaling up?

Probably only get 50% max via PB given overall demand? Even that may be optimistic.

Anyone looked at INPP? ...although that is very close to the issue price already.

[cwa1] 26/4/2022 10:25

except for a very small PrimaryBid tranche

I've dozed off at the back of the class...what is the size of the PB tranche?

Cheers

[chucko1] 26/4/2022 10:24

Therefore hoping still to get more than 50% of my application. It was 38% last time (in the Placement), but there is no Open Offer on this occasion (except for a very small PrimaryBid tranche).

This should eventually find 130p and above again, and within a few weeks quite possibly.

[spectoacc] 26/4/2022 10:09

Significantly upped, there's a surprise. £175m to £300m, & doubtless will exceed even that.

[swiftnick] 26/4/2022 08:50

Primary Bid offer closes at 11:00am.

[jonwig] 25/4/2022 15:07

I didn't check either, I'll go back to the ROOF p[rospectus.

[bountyhunter] 25/4/2022 14:33

But surely it's the supermarket tennant that buys the electricity from ROOF?
But if you've seen details otherwise then fair comment as I haven't checked.

[jonwig] 25/4/2022 12:48

I thought it was the other way round.

SUPR gets free leccy and pays ROOF a retainer. Win-win.

[bountyhunter] 25/4/2022 12:14

Does anyone know by how much Supr will benefit from Roof sticking up their solar panels on their properties?
I know they are both Altrato related but presumably Roof will need to make payments to Supr for being allowed to put up their solar panels?

[bountyhunter] 25/4/2022 08:31

Getting close to the offer price now with markets falling due to a hawkish Fed and China lockdowns. Defensive qualities may support the price if the market descends further?

[jonwig] 25/4/2022 08:27

From this morning's FT City Bulletin:

The supermarket price war is ramping up.

Asda said this morning that it would invest more than £73mn in keeping prices of essential items down. Meanwhile Morrisons said it was cutting the price of more than 500 items, with an average price drop of 13 per cent.

That follows a pledge from Tesco two weeks ago to hold prices down, at the expense of greater profit growth in the year ahead, as traditional grocers eye discount retailers Aldi and Lidl as well as the likes of B&M and Home Bargains.

Asda also became the latest retailer to increase pay for employees, raising wages for shop floor workers to £10.10 an hour from July.

Won't stop them paying rent, of course, but could asset values fall? Will some areas become over-shopped (ie. more supermarkets can lead to sub-optimal profitability)?

[chucko1] 22/4/2022 10:58

It's already ex-div, so still 1.75p (mid) higher.

[bscuit] 22/4/2022 10:53

Beginning to look like issue price plus dividend.......

[chucko1] 19/4/2022 23:32

No - it stuck at the price from before the issue (i.e. 115p + div), and then, once a certain amount had cleared, went a fair amount higher. Check out the price chart from very early October 2021 to about 19th October. Fell immediately to offer price and took about a month to return to pre-offer price (121p, or 122.5p div. adj.).

The fact that the current share price is 3.5p above the offer price (corrected for dividend) suggests a hot offer. It is likely the case owing to the fact that it had recently been seen at 132p. However, that may in part be explained by a report suggesting a "return of capital" owing to the Sainsbury's return of leases. Hardly!!

In the previous offer, PrimaryBid was allocated in full, as was the open Offer (there is not one here), but Placement only 38% allocated even though total offer size was doubled. I expect an increase in offer again and perhaps only a 30% allocation in the placement.

Well, anyway, I have applied through both channels.

[return_of_the_apeman] 19/4/2022 23:13

I believe the price reverted to the that of the issue following each previous one? Perhaps it will be different this time with inflation rife, we shall see

[bscuit] 19/4/2022 15:51

On previous issues retail investors were not scaled back. Here's hoping.

[apollocreed1] 19/4/2022 15:46

@swiftnick-Those who apply via primary bid are likely to be scaled down significantly, so investors that want large positions are taking the opportunity to buy as much as they want on the market at a price that's less than 130p where it was a few weeks ago.

[swiftnick] 19/4/2022 15:29

Can someone explain why this is trading at 126p when investors can still buy new shares from Primary Bid at 121p? I realise that the Primary Bid shares don't qualify for the 1.485p quarterly dividend, but the price difference is much larger than that (plus there are no dealing costs with PB).

[brexitplus] 14/4/2022 09:39

RBC Capital Markets set a target price of 150 GBX for the company, which when compared to the Supermarket Income REIT PLC share price of 125 GBX at opening today (13/04/2022) indicates a potential upside of 17.0%. Trading has ranged between 111 (52 week low) and 133 (52 week high) with an average of 3,328,980 shares exchanging hands daily. The market capitalisation at the time of writing is £1,231,932,000.

[chucko1] 13/4/2022 10:42

Inflation (RPI) is estimated to average 5.8% over the next 3 years, 5.2% over the next 5 years and 4.6% over the next 10 years.

The 10 year average centred around 3.5% the past 5 years (without a lot of variation) and has steadily moved higher the past year. In that context, the 4% caps are OK. If you look at where the 5 year average will be 5 years into the future, it is (10 x 4.6 - 5 x 5.2)/5 = 4.0%. A similar calculation yields an average of 4.3% between years 3 and 5.

Also, though not shown above, 3.85% between years 1 and 3 but 9.7% in the next 12 months. In other words, all the cap "damage" expected in the near term, but when raising rents would not be easy in any event.

Interesting that long term inflation at 4% or so returns even though we will likely see a reaction (for base effects, to some extent) to the current very high levels (i.e. the 3.85% after this year).