Supermarket Income Reit Share Discussion Threads

[marktime1231] 18/9/2024 20:56

Such a detailed comprehensive report which will take several slow reads to take it all in, including spotting anything which raises questions. Did you mean management fee nickrl, overall costs were down, and the claim to have sector low cost ratio with ongoing cost cutting is reassuring.

Supermarkets could decline like offices and high street retail because ... nah! But views from all sides are welcome, to keep us from running away with the idea that SUPR is a certain winner.

If the quantum of debt here was a perceived problem then US rate cutting will help sentiment but it is the narrative of a more conservative UK which worries me, punishing interest rates bite too deeply in to the economy and household budgets before easing off.

[rimau1] 18/9/2024 20:08

Admin costs fell from 15.4m to 15.2m for the year caveat being that i have had a bottle of red this evening. All good overall, yield of 8percent and stable valuations. One to keep tucked away as rates fall IMO

[nickrl] 18/9/2024 19:59

Steady as she goes but would like to know why admin costs have gone from 2m to 2.8m in 12mths. Is the inv mgr finding a back door to boost there declining fees!!

[williamcooper104] 18/9/2024 18:20

50bps cut from the Fed Won't hurt tomorrow

[mpage] 18/9/2024 15:28

Agree but if service sector inflation remains sticky (What does the union want? Ok, give it to them.)then we might be in for a shallow cycle. And thus, maybe discount only narrows a little from here.

But it's the long-term indexed leases and rising yield that make this attractive to me; can't say I've ever given a single thought to reversionary rents. Assuming the sites are not over-rented. Andrew Jones, CEO of London Metric and a shrewd operator, thinks that a lot of UK supermarkets could be heading the same way as shopping centres and offices have gone - hence importance of petrol + home delivery sections for SUPR sites.

Seeing the Atrato CIO jump ship to Assura(after year end but before announcement of finals)was not reassuring.

[chucko1] 18/9/2024 12:38

Yes, but ...

The capped rents and the higher rates have squeezed progress to the barest minimum. However, what about the next part of the cycle? Lower medium term rates (hence future refinancing) and rents growing at circa 2.5% per annum, not even considering those rents which will revert on lease renewal (albeit at a slow pace owing to the average lease length).

This is a stock truly for the medium/long run, with most - if not all - of the pain in the rear view mirror. A cut in the valuation discount rate in, say, 6 to 9 months, may refocus some minds, though I am not personally bothered.

[mpage] 18/9/2024 11:36

The report makes it clear that the dividend comes a distant second place to earnings growth. Having committed themselves to a progressive /covered dividend - a 1% rise was the minimum needed to meet this requirement.

Progressive is a weasel word. 6.0p>6.01p>6.02p>6.03p is 'progressive' but not much use to investors in real terms.

SUPR's divi appears to be caught between the ceiling of capped rents and the floor of debt costs. Indeed, in the Principal Risks and Uncertainties section ,the #1 key risk shows a big red downwards arrow over the dividend growth rate. But anyone buying over the past 18 months as rates topped out, should be happy enough.

[williamcooper104] 18/9/2024 09:41

And while it's a small increase in the divi it does point to confidence

[dartboard1] 18/9/2024 09:04

Agree ... my key take was dividend cover moving from 0.97 to 1.01

[ntv] 18/9/2024 06:47

not much change from 1/2 yr results
August saw the first rate cut for a while so probably back to 1/2 yr valuation by now
Yield looks secure to me so happy to hold
Did sell a few ahead of results so will just see which way the share price goes
Not really bothered as a long term hold really anyway with a decent dividend

[rimau1] 18/9/2024 06:41

The extent of the comment on the Supr results is this, slow news day lol

[swiftnick] 18/9/2024 06:32

Alan, the numbers are negative so it's clearly an improvement because it's smaller negative earnings. I can see how they calculated the 85% but I would agree that it's a bit misleading. Percentages can be tricky when dealing with negative numbers. Had it been me I would probably have just left it blank.

[spectoacc] 18/9/2024 06:17

Negative, due to revaluations, so a slightly dubious 85% improvement.

[alan@bj] 18/9/2024 06:11

Is that IFRS Earnings per Share figure correct. 2024 1.7p 2023 11.7p yet the 2024 figure is stated to be an 85% increase? An 85% increase would result in 21.7p surely? It’s obviously -85% not +85%.

[marktime1231] 16/9/2024 12:12

Looks like folks have twigged, SUPR is great income and not so risky, the discount is unreasonable, starting to appreciate like other REITs. Rising in to results on Wednesday. Got here just in time then, and will go again if there is a share price wobble.

[speedsgh] 09/9/2024 09:28

Chief Investment Officer of SUPR's Investment Adviser, Atrato Capital Limited, has taken up a new role at Assura (AGR) with immediate effect. His responsibilities will be shared by his existing co-managers, Ben Green, Rob Abraham and Mike Perkins. Market doesn't seem to concerned thus far...

[marktime1231] 06/9/2024 16:31

Crazy movement for what should be a steady boring stock. Someone or something spiked up the price to mid 76p for an hour this afternoon. It triggered the sale of most of the bargains I picked up for 73p on Tuesday and caught me by surprise, oh well netted a few hundred £ and a few hundred extra shares.

Puzzled as to who is orchestrating, but happy to join in since the boundaries seem well defined. The theme from everyone here seems to be that the trading risk of getting stuck overweight is low and well compensated.

[panshanger1] 06/9/2024 13:27

Regained its poise here Well done those who picked up a few earlier in the week I was already fully loaded sadly

[8gggggggg] 05/9/2024 09:23

I agree, I keep searching for reasons not to buy more..Can't see the point in investing in France.....Unknown dangers in a foreign land !!!?Dakas..

[wllmherk] 04/9/2024 15:30

I was tempted to top up yesterday but, didn't. It's already my largest individual share holding by some distance. I've learned from past mistakes not to invest too much in one share but, surely out of all the REIT's this has to be one of the safest given the profile of their tenants?

wllm :)

[chucko1] 04/9/2024 14:51

Also, Asda/Morrison is a small slice of the portfolio. The negative effect would be borderline immaterial.

[williamcooper104] 04/9/2024 12:01

They are, but it's all down to the buying the right sites Note in most CVAs the better assets get left untouched, and even in the recent Cineworld cram down the best sites haven't been touched

[chucko1] 04/9/2024 12:00

Notwithstanding my current risk aversion, I bought some yesterday anyway! Sticking its chin out a little.

Non-farm payrolls in the US tomorrow could be important in terms of medium term global rates outlook, which should essentially be the driver behind SUPR from here on - ceteris reasonably paribus.

[marktime1231] 04/9/2024 11:57

Active today, 2.5 million shares traded at 73p this morning, some comfort that this weakness was a buy signal. Now lets have a bounce up.

Supermarkets seem to be a pretty resilient sector, weathering (exploiting?) the so-called cost-of-living crisis with a surge in profits and expansion plans. The income is excellent and as you say it ought to be reliable. A wide discount here does not make sense, no imminent cliff edge in terms of debt.

[nickrl] 03/9/2024 18:27

bizarre the way these behave. Its a stable income stream with minimal risk but maybe Morrison/Asda woes are causing some concerns with big investors. Ill wait results before adding again as its also my 2nd biggest holding after SREI.