Supermarket Income Reit Share Discussion Threads

[riverman77] 23/2/2023 08:25

Depends what you mean by reliable. It's reliable in the same way as a bond is reliable - a safe income stream. That doesn't mean the price will be stable - bond prices have fallen a lot as yields have risen and SUPR has more or less moved in line with that dynamic.

[mister md] 23/2/2023 08:17

Thought this would be a reliable investment, but shareprice performance has not been SUPR ...

[frazboy] 23/2/2023 07:44

You need to adjust for the debt? NAV/share down perhaps 17% ish?

From Edison’s recent report:

‘Our previous assumption, and we stress assumption given the level of uncertainty, was that the valuation yield on SUPR’s portfolio would increase by c 35bp from the 30 June 2022 (FY22) level of 4.6%. We now assume a 50bp increase during FY23 (an implied c 6% reduction in property values) and for yields to drift higher over the following two years, reaching 5.25%, as capital values fail to fully keep pace with rent growth.’

If I understand correctly todays announcement says the valuation yield is now 5.4%


The reason for the recent share price weakness is now evident. Valuations have been reduced more than may have been expected. I’m assuming the dividend is sustainable - any one have any comment on that, nickrl?

[riverman77] 23/2/2023 07:41

Ammons - You need to factor in gearing so NAV will be quite a bit lower than that. Yes probably around 94-95p sounds right.

[hugepants] 23/2/2023 07:39

Property value down 13.3% in the 6 months to end December. Given 20% LTV then NTA drops to around 94p from 115p?

[ammons] 23/2/2023 07:38

No idea why the NAV per share was not added to todays RNS?

SUPR NAV at 30 June 2022 was 115p so a 13.3% decline makes it 99.7p today.

[look alive1] 16/2/2023 08:24

Picked up 100,000 at 96.2 yesterday

[williamcooper104] 07/2/2023 18:33

Yep - a relative value trade You get interest on the collateral used for securing your short - so the short leg isn't much of a negative carry - so can go long and short similar divi yielding stocks and get a positive carry

[williamcooper104] 07/2/2023 18:31

Roughly above/around 10 in the UK is heavily shorted (though in the US shorts frequently get way above that) PHP has been 3-4 percent shorted for a long time I like a good bit of short interest - one of my US stocks has paid out half of the divi in stock lending fees

[chucko1] 07/2/2023 17:40

Happy to an extent - they had a larger short which has been cut recently. In any event, it is not clear what - if anything - was against this short.

Certainly, some HFs regarded the yield advantage of REITs over Gilts as insufficient. For the likes of BBOX, SHED, WHR or PHP for example, not a difficult call.

As for a 0.68% short, this is not a large short. Their largest position in this was a 1.53% (or so) short which is about what HFs are generally happy to go with unless there is a deep conviction, such as the one Odey had in Metro Bank (they shorted from 3500p to less than 100p with around 3.5% of the company's ords).

[nickrl] 07/2/2023 17:25

down 4.6% today will make them happy and flirting with all time low ignoring Mar20.

[jonwig] 07/2/2023 16:50

Could be part of a pairs trade: long A, short B. You just want A to outperform B, even if both fall.

[petersinthemarket] 07/2/2023 16:42

As of 2 February 2023, GLG Partners Ltd have a 0.68% short on SUPR (down by 0.28%). They have much larger shorts in place on more than half a dozen other companies. (see hxxps://shorttracker.co.uk). I suppose it's the job they do, but I can't see it making them much of a profit on SUPR. I wonder what size short should actually start to worry a company. Does anyone have any views on the topic?

[sharesoc] 04/2/2023 12:45

ShareSoc is hosting a webinar with Supermarket Income REIT (SUPR) on 21 February 2023, which may be of interest to current shareholders or potential investors. Steven Noble (Chief Investment Officer at Atrato Capital) and Robert Abraham (Managing Director at Atrato Capital) will be presenting. You can register here:

[deeker] 02/2/2023 17:14

Hats off, good call. Already got a heady percentage in these tho so have to stick for the moment.

[trikytree] 02/2/2023 14:55

Good timing WilliamCooper. I also more than doubled my holding yesterday so am feeling quite smug today 😂

[scruff1] 02/2/2023 07:56

Yep. Wonder if the fed fancies swapping Andrew Bailey for Powell? The fed has a plan and they have stuck to it. Must be nice having leaders with a plan rather than a set of u turns suddenly appearing out of the fog

[williamcooper104] 01/2/2023 22:21

Grabbed some at 96.8 US markets rallying hard on Fed statement so likely we get a bit of follow through tomorrow

[scruff1] 01/2/2023 20:50

Ditto (97.2). Cant see there being too much down side from here - apart from a call maybe.

[wad collector] 01/2/2023 20:06

Added at 98p. Drop looks like an opportunity to me....

[dendria] 19/1/2023 13:07

Edison note out today:

[jong] 19/1/2023 08:57

XD today. 1.5p per share payable on Thur 23rd Feb.

[jg231] 12/1/2023 12:43

Reading back through the various announcements, Sainsbury's is buying 21 of the stores for £1,040m (cash in March and July). There are another 5 stores. Sainsbury's is taking a new lease on 4 of those and 1 going to be sold vacant. So the total value is more than £1,040m (they don't disclose the total).

There is debt in the underlying structure, which is why SUPR is buying 25.5% of the whole lot now for £196m (i.e. for less than 1/4 of the £1,040m + the value of the other 5 stores).

BA is a pension fund, so I can only think that they value getting the liquidity now over waiting for the money. I suppose that's not surprising given what's gone on in pensions land and SUPR is taking advantage of that.

Looks like SUPR is just making some additional return out of an existing investment position and gets all the money back in March and July?

[wish i wasnt in rbs] 12/1/2023 12:27

for 21 of the 26 supermarkets?