Supermarket Income Reit Share Discussion Threads

[bscuit] 09/10/2020 10:56

Admission taken place, but scaling back isn’t publicly announced as advised by Atrato, who advise breakdown is carried out by platforms in liaison with SUPR’s broker, so AJB and HL and others will presumably be doing it today.

[brexitplus] 09/10/2020 08:46

Have the new shares been admitted. No sign in RNS or HL.

[bscuit] 08/10/2020 22:40

Ditto, but MW believed most got their applications.

[williamcooper104] 08/10/2020 21:15

I've still not heard from HL - have the assured stock line in my account

[bountyhunter] 08/10/2020 18:17

Yes through PrimaryBid. I had the email from them saying I had got what I applied for yesterday. Shares should arrive anytime from tomorrow I believe.

[cwa1] 08/10/2020 13:16

bh, if you don't mind me asking, was yours through PrimaryBid too? Nothing from EQI yet.

[bountyhunter] 08/10/2020 12:48

Up a tad, selling at 104.74 now.
Might dip back to closer to 104 initially tomorrow when some of the placing shares hit the market? A hold for the patient imho. My target is 115.

[bountyhunter] 08/10/2020 12:46

Got all mine too II, but not a large application.

[bountyhunter] 08/10/2020 08:11

104.6/105.0

To be expected given the placing. Should gradually rise from here back to where we were I agree. A very generous yield when compared to bank accounts and the need for food and therefore for commercial premises for the big supermarkets is not to go going away, be it traditional shopping or via online distribution centres.

[chucko1] 07/10/2020 15:19

104p was a great entry point for a new investor and also interesting for existing investors to up their exposure. I suspect they (SUPR) will have taken into account the general volatile backdrop (although much less so in the key industries REIT sector), and so this was priced to go under any reasonable scenario. Worth noting that Steve Windsor is an ex-GS marketer who would be entirely au fait with such capital markets issues - absent of a return to volatile markets in the coming days and weeks, this stock has good chances of steadily ascending once again to a price close to the previous price of around 109p (dividend adjusted). I see the "excess" subscription sales being sold and bought with little drama.

[income investor] 07/10/2020 13:02

I got all the shares I applied for through PrimaryBid, so seems most applications satisfied in full

[bscuit] 07/10/2020 09:55

Given terms of RNS applications up to highest director subscription level must surely being met in full.

There was no stagging prospect as the price was never going to rocket away.

[jonwig] 07/10/2020 09:21

CWA - yes, that's always a temptation. "I want 5,000 so I'll apply for 20,000 and sell the rest." Maybe that's what's happening, but the short-term profit is evaporating.

I applied for only what I wanted, and it was a small amount. I guess I'll get full allocation.

[cwa1] 07/10/2020 08:59

Just heard that somebody that applied through PrimaryBid got their full allocation.

Think there will be a short period of indigestion as those who applied to stag the issue sell out. After that I think it is an excellent medium to long term investment and will be happy if I get the full allocation even though I scaled it up a bit initially.

[brexitplus] 07/10/2020 08:51

Jonwig, Agreed. I just think it was a little low. Interesting to see what the scaleback is. If large the issue price will have been too low I believe. Institutions certainly got a bargain.

[jonwig] 07/10/2020 08:22

brexitplus - companies usually sound out their larger shareholders before pricing an issue. There's a certain amount of shadow boxing in that the company would like a higher price, the shareholders a lower one.

The issue price has to sit between the NAV and the current share price, and needs also to account for selling on the news, as happened here (drop from 111 to 105).

[return_of_the_apeman] 07/10/2020 08:18

Nice to see four directors have also bought

[brexitplus] 07/10/2020 07:57

Which begs the question “Why weren’t the shares priced higher?” Not that I am complaining but the issue price appears to have led to the share price drop.

[jonwig] 07/10/2020 07:14

" After careful consideration of the strong level of support and quality of demand from investors in the Initial Issue alongside its confidence in executing on the Pipeline and an increase in further appropriate investment opportunities since the marketing roadshow began, the Board determined to increase the size of the Initial Issue to £200 million. Notwithstanding the increased size of the Initial Issue, investor demand exceeded the gross proceeds raised and as such a scaling back exercise was undertaken."

[adamb1978] 06/10/2020 11:59

Thanks both. The lag effect between raising capital and investing it makes sense. Will have another look later and likely add
Cheers

[jonwig] 06/10/2020 11:42

Adam - it's called "cash drag". If a company raises new equity, the cash isn't deployed immediately and earns negligible interest. So you've more shares but not more income. It's temporary.

They are planning a dividend increase next year, so I wouldn't be concerned!

[williamcooper104] 06/10/2020 11:41

It's naturally normally a warning sign - but there's less reason for concern here IFRS doesn't capture the income performance of REITs, AFFO/FIFO - used in the US better reflect cash/income performance PHP didn't cover their divi for years, it had long leases with escalators, so it was confident that its rental income would grow into its divi yield - which it did. SUPR similarly has long leases with inflation and/or fixed uplifts It's also been constantly raising capital and buying assets - so there can easily be a time lag between having cash and investing in assets

[adamb1978] 06/10/2020 10:58

Hello

I'm considering adding SUPR to my pension - resilient model given that supermarkets will always be needed even if increasingly as distribution centres for online deliveries. One question for holders - what are people's views on the dividend not being covered by earnings? I haven't checked whether this is common across other REITs - you'd naturally expect them to be very close, but here the divi is higher. I might still add given that the yield plus some small capital appreciation would be better than other bond-like investments, but wanted to see whether others have considered it.
Thanks

Adam

[brexitplus] 06/10/2020 07:43

I wondered if this might happen. It’s great to see the shares in great demand. SUPR is ex-div, payment date 16 Oct so no incentive to buy at present.

[jonwig] 06/10/2020 07:15

"Since the Company's announcement on 17 September 2020, the Board of Supermarket Income REIT plc has carefully considered the appropriate size of the Initial Issue and decided to increase the target from approximately £150 million to up to £200 million."

Closes 4pm today, results announced tomorrow.