Supermarket Income Reit Share Discussion Threads

[speedsgh] 07/6/2024 11:35

Stifel are of course joint corporate broker to SUPR which probably explains their bullishness!

[rat attack] 06/6/2024 22:14

Steifel target price is 14% premium to current NAV!! Not sure that is achievable at present given current REIT pricing.

[nerja] 06/6/2024 12:26

Supermarket Income REIT: US bank flags up strong rental profile

Proactive Investors - Supermarket Income REIT PLC (LON:SUPR) has one of the strongest rental income profiles in the UK real estate investment trust sector, according to a report by Stifel.
Nearly 80% of its leases are index-linked, ensuring a stable and predictable income stream. Despite this robust profile, the American investment bank believes the equity market undervalues the company and reiterates a 'buy' rating with a price target of 100p (current price 75p).
The company, which specialises in investing in UK supermarket assets, recently made its first foray into Europe, acquiring a portfolio of 17 omnichannel Carrefour (EPA:CARR) stores.
This expansion, coupled with the recent unwinding of a joint venture with Sainsbury's, has provided Supermarket Income REIT with significant investment potential. Stifel expects further acquisitions in both the UK and Europe over the next year.
The REIT's shares offer a prospective dividend yield of 8%, which is well above the UK REIT average of 4.4%.
This dividend is fully covered by earnings, reinforcing the company's financial stability. Despite a 12% fall in share price since the beginning of the year, Stifel argues that this decline is unjustified, especially considering the recovery of the EPRA UK Index over the same period​.
Supermarket Income REIT, managed externally by Atrato Capital, leases most of its properties to major UK supermarket operators.
The portfolio's high degree of index-linked leases and long-duration contracts, typically exceeding 15 years, provide strong income security. With future acquisitions planned in both the UK and Europe, the company aims to capitalize on its solid rental income profile and strategic growth opportunities​.

[killing_time] 28/5/2024 08:28

nickel.
The EPS of 2.9p is for 6 months so the full year dividend is currently 0.97% covered. Hope this helps.

[nickrl] 28/5/2024 08:22

American centric viewpoint and not really sure how it was adding any value just regurgitating latest presentation slidedeck but not a site a look at so maybe thats its usual approach. Had to say the statement at the end caught my attention

"If you, as the reader/investor/subscriber can find a risk here that is overhanging or in any way serious, given that fundamentals and operations are very solid at this point, we would be very interested in hearing this"

oh and says before this statement

"Portfolio fundamentals are solid enough. SUPR manages 6M rental incomes of over £50M, annualizing at over £100M, which generates EPS of about 2.9P with an FY dividend target of about 6.06P for the portfolio"

so divi is less than half covered - i think not.

That said im still not sure that the excursion to France is the right thing to do and the article barely mentions it. At least they have taken out a Euro RCF to cover it which i reckon is c5.4% currently vs 6.4% NIY but if ECB cut this week would be welcome improvement on margin.

[panshanger1] 28/5/2024 08:19

That's better .....

[cwa1] 28/5/2024 07:26

That initial gain was based on a less than 5,000 shares UT, so was barely much more than illusory, sadly!

[mister md] 28/5/2024 07:22

Yep the 3p gain quickly evaporated.

[cwa1] 28/5/2024 07:18

Barely moved?

[mister md] 28/5/2024 07:09

Seems that article is having some effect on the shareprice this morning.

[williamcooper104] 27/5/2024 18:45

Prew got the rent psf wrong - it's not as high as he quoted Also he is missing that rent affordability isn't psf but how much it is relative to store profitability 4% of turnover is the stated normal metric, but in a high producicuty store especially with a petrol station you can get materially higher rents/turnover which are still very affordable

[chucko1] 27/5/2024 18:10

Yes, saw that earlier. Notable that he pointed at the outlets owned by SUPR as having relatively rapid rises in turnover and also analysed the raison d'être of buying some stores at 7.6% yield and others at 5.5% yield. What he did not do was to say that they could or should all be revalued to the higher yield, as they were not one and the same.

He is not always right, but it would be foolish not to take seriously what he has to say. Would love to see a debate between he and Prew! The latter has a TP of 60p (recall I thought that was ill-thought out) whereas the former is near a quid.

[flyer61] 27/5/2024 14:11

Brad Thomas of Seeking Alpha covering SUPR!

[panshanger1] 23/5/2024 19:04

Same in my ISA

[williamcooper104] 23/5/2024 18:41

Yep - that's usually what happens I recieve gross in my SIPP

[my retirement fund] 23/5/2024 18:40

Hopefully not a daft question, but would a isa/sip provider not automatically claim the 20% tax back on the dividend for you ?

[m_kerr] 23/5/2024 16:32

If it stagnates long enough, realty income would be sniffing around.

They like the UK and these sort of assets, and particularly like larger transactions that move the needle on a $50bn or so market cap.

[scruff1] 23/5/2024 11:40

This is a tad dated

[mister md] 20/5/2024 06:49

Well each time I'm tempted to sell this underperforming share in my portfolio, some further chunky director buys are RNSed and I decide to hold on for the recovery (and dividends) ...

[chucko1] 20/5/2024 06:37

Yup. Seems he thinks they might be able to raise rents in the coming years. He really ought to have read the musings of Jefferies’ Mike Prew and been properly informed prior to making this life-changing financial mishap.

[is it Jefferies’s]?

[spectoacc] 20/5/2024 06:26

Spent £250k last Thursday, not bad.

[igoe104] 20/5/2024 06:21

Big Director buy again...

[williamcooper104] 17/5/2024 18:16

It's accretive if it's raised at a premium as to what it's going to be spent on Plenty of REITs (ok mostly US) have done that

[m_kerr] 17/5/2024 16:23

Capital raises benefit the investment manager, not equity holders, unless equity is raised at a meaningful premium to value, which is almost never the case.

An exception is if the trust is sub scale, which is not the case here.

[smackeraim] 16/5/2024 13:05

New tr1 there today