Supermarket Income Reit Share Discussion Threads

[bscuit] 24/4/2020 14:28

And probably huge over-subscription contacts/promises...

[metaltrack] 24/4/2020 14:15

RNS. 24042020"it has been decided to increase the target size of the Issue to in excess of GBP100 million, subject to a maximum of GBP139.8 million. The decision to upsize has been made after careful consideration by the Board and reflects the possibility of acquiring additional assets."

[oshy92] 20/4/2020 15:36

Afternoon - you may already have seen this, but below is an interview with Justin King (ex CEO of Sainsbury's) and Steve Windsor (investment advisor to SUPR) about how supermarket supply chains are coping:

www.youtube.com/watch?v=uVBjQu9YCks&t=17s

[bscuit] 17/4/2020 19:02

As has been explained to me in the context of another family holding in the company, this is not an offer intended for the public and therefore it is very much a question of attitude of one's broker, who has to do the certification of the client to Stifel. I suspect that the account where I believe my application is being made will be from a broker who will have many applicants and will give a broadbrush certification. I expect the offer to be significantly oversubscribed. If you don't get into the placing then I think one waits for the price to drift back.

[bscuit] 17/4/2020 11:10

Rat and RAM – because it is not an Open Offer you will not get a note of a corporate event from your broker. I suggest you speak direct to your broker and do as I did speak direct to one of the named persons at Stifel, who are the issue broker. The person I spoke to give me his mobile number, which I passed back to my broker, who had no difficulty in taking instructions to speak direct to the Stifel contact. Be aware that you are likely to pay more commission than usual. In my case it is £100, but if I get even half of what I have applied for then it is cost neutral when set against the first quarter's dividend.

It is noteworthy that SUPR was recommended in yesterday's Telegraph – no mention of the issue – with no mention of the risk notice acceptance requirement that occurred in both our families holdings from different brokers. Looks like it is becoming mainstream.

[jonwig] 17/4/2020 09:31

It's quick and cheap to phone round institutions who will be investing at least £100k apiece. If Joe Public can invest, they will need a prospectus and offer document which is time-consuming and expensive.

But ... there's a limit on how many shares they can issue on a non-preemptive basis, usually 15% a year.

[ramellous] 17/4/2020 09:26

But why limit it to persons invited by Stifel? They must have demand?

[jonwig] 16/4/2020 17:03

... see #92 for the explanation.

[rat attack] 16/4/2020 16:49

I haven't received a corporate action yet, has anyone else received one?

[jonwig] 14/4/2020 12:02

ramellous -

PARTICIPATION IN, AND PRINCIPAL TERMS OF, THE ISSUE

Stifel (whether through itself or any of its affiliates) is arranging the Issue as placing agent of the Company for the purpose of using reasonable endeavours to procure Placees at the Issue Price for the New Ordinary Shares.

Participation in the Issue will only be available to persons who may lawfully be, and are, invited to participate by Stifel. Stifel and its affiliates may participate in the Issue as principal.

[ramellous] 14/4/2020 11:38

How have you applied?.. I’m with ii and have no notification of corporate actions yet

[bscuit] 09/4/2020 11:42

On further thinking about it, the issue is very shareholder friendly and in the current market it is obvious why it is not underwritten. I already hold and have applied for a further large amount, but fully expect a scaling back.

[ramellous] 09/4/2020 11:08

Ill be in for some as an existing shareholder.. I’m curious though why these are being bought still up to 108p this morning?.

[bscuit] 09/4/2020 10:21

The issue isn’t surprising given recent strength, but making it eligible for the January to March dividend is a form of robbery from existing holders.

[bscuit] 09/4/2020 10:21

The issue isn’t surprising given recent strength, but making it eligible for the January to March dividend is a form of robbery from existing holders.

[ramellous] 09/4/2020 07:54

Another fundraiser @ 103p to acquire more of what they do well. Some retail is never going away as we have seen recently.

[cwa1] 08/4/2020 07:17

Music to the ears:-

dividend declaration

The Board of Directors of Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust providing secure, inflation-protected, long income from grocery propert y in the UK, has today declared an interim dividend in respect of the period from 01 January 2020 to 31 March 2020 of 1.460 pence per ordinary share, payable on or around 22 May 2020.

This dividend will be paid as a Property Income Distribution ("PID") in respect of the Company's tax-exempt property rental business to ordinary shareholders on the register on 01 May 2020. The ex-dividend date will be 30 April 2020.

[cwa1] 27/3/2020 07:15

The best update I've seen for a long time :-)

[ramellous] 27/2/2020 15:11

Well I knew this would be a good holding for a downturn..

[cwa1] 24/2/2020 11:34

Edison research on SUPR:_

[cwa1] 19/2/2020 07:31

19 February 2020

Supermarket Income REIT

(the "Company")

ACQUISITION OF A SAINSBURY'S SUPERMARKET IN Hessle, EAST RIDING

Supermarket Income REIT (LSE: SUPR), the UK supermarket real estate investor, announces the acquisition of a Sainsbury's store in Hessle from Reassure Limited for GBP34.0 million (excluding acquisition costs), reflecting a net initial yield of 5.5%.

Originally developed in the early 1980s, Sainsbury's has a long history of trading from this prominent 13-acre site which was substantially refurbished in 2011.

The supermarket comprises 50,000 square feet net sales area with a 12-pump petrol filling station and 584 parking spaces. The store has purpose-built online fulfilment docks and supports Sainsbury's online grocery fulfilment for the surrounding area. It is being acquired with an unexpired lease term of 14 years with annual, upward-only, RPI-linked rent reviews (subject to a cap and floor).

Included in the purchase price is an adjoining Homebase store comprising 21,000 square feet net sales area with an unexpired lease term of four years. Sainsbury's guarantee the Homebase rent for the duration of the lease. Consequently, the combined total net initial yield on this purchase of the Sainsbury's in Hessle, including the rental income from the Homebase, will be 6.3%.

Ben Green, Director of Atrato Capital, the Investment Advisor to Supermarket Income REIT, said:

"This Sainsbury's superstore is ideally located for both online and offline grocery sales and adds to Supermarket Income REIT's growing portfolio of omnichannel stores."

[ramellous] 11/2/2020 16:30

I was glad to get in the last placing @102p. Curious who the partner is.

[belgraviaboy] 11/2/2020 15:57

There has to be a concern that (if it goes ahead) this will dilute the so far successful omni channel site plan. This sounds, by definition, far less selective than they have been so far.

At the very least the risk profile sounds like it will increase with some shorter dated leases being included. I wonder if it will also weaken the RPI linkage?

That said, these guys are experts in this field and if they believe it is a good deal then it probably is.

However, will the market think the premium is still deserved? Will any more cash be required, there is some left but this sounds like a deal of some size even taking a minority stake.