Supermarket Income REIT PLC Amendment To Advisory Arrangements (2849F)

TIDMSUPR

RNS Number : 2849F

Supermarket Income REIT PLC

15 July 2021

SUPERMARKET INCOME REIT PLC

(the "Company")

LEI: 2138007FOINJKAM7L537

AMENDMENT TO ADVISORY ARRANGEMENTS

Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust providing secure, inflation-protected, long income from grocery property in the UK, is pleased to announce amendments to the Company's existing Investment Advisory and Accounting and Administration Services Agreement (the "IAA").

Amendment to Investment Advisory Fee

Under the existing agreement, Atrato Capital Limited (the "Investment Adviser") is entitled to both a monthly advisory fee and a semi-annual fee, which operate at the following levels based upon the Net Asset Value of the Company. Pursuant to the revised investment advisory agreement (the "Revised IAA"), an additional fee level of 0.4% on Net Asset Value in excess of GBP2.0 billion is being introduced. The introduction of this additional tier demonstrates the desire to grow to a multi-billion pound company and aims to ensure that shareholders benefit from economies of scale as the Company grows.

The fee structure with the new additional tier is set out below:

 
 Net Asset Value                Monthly fee   Semi Annual   Blended fee 
                                                  fee 
-----------------------------  ------------  ------------  ------------ 
 Up to GBP500m                    0.7125%       0.2375%        0.95% 
-----------------------------  ------------  ------------  ------------ 
 Between GBP500m & GBP1.0bn       0.5625%       0.1875%        0.75% 
-----------------------------  ------------  ------------  ------------ 
 Between GBP1bn & GBP1.5bn        0.4875%       0.1625%        0.65% 
-----------------------------  ------------  ------------  ------------ 
 Between GBP1.5bn & GBP2.0bn      0.3375%       0.1125%        0.45% 
-----------------------------  ------------  ------------  ------------ 
 Above GBP2.0bn                   0.3250%       0.0750%        0.40% 
-----------------------------  ------------  ------------  ------------ 
 

Initial Term and Termination arrangements

The existing agreement has a fixed initial term of five years, which is due to expire in July 2022 having commenced on 21 July 2017. In the event that written notice to terminate is not served by the Company or the Investment Adviser prior to the end of the initial term, the IAA would continue in force for recurring 12-month periods.

The Revised IAA provides certainty for the Company by securing the services of the Investment Adviser and key members of their team by extending the required notice period to two years. The new Agreement is effective from 1 July 2022 and the Company has waived its right to terminate the existing agreement until this date.

Furthermore, the Company has secured a reduction to the investment advisory fees through the introduction of the additional fee level.

The Revised IAA also increases the minimum notice period for termination of the Accounting and Administration services, from six months to 12 months.

The Investment Adviser is a related party of the Company under Chapter 11 of the FCA's Listing Rules and the amendments to the IAA constitute a smaller related party transaction under Listing Rule 11.1.10.

 
 
   FOR FURTHER INFORMATION 
 Atrato Capital Limited                                [phone] 
 Ben Green / Steve Windsor /                          [e-mail] 
  Steve Noble 
 Stifel Nicolaus Europe Limited                        [phone] 
 Mark Young / Matt Blawat 
 
 FTI Consulting                                        [phone] 
 Dido Laurimore / Eve Kirmatzis    [e-mail] 
  / Andrew Davis 
 

NOTES TO EDITORS:

Supermarket Income REIT plc (LSE: SUPR) is a real estate investment trust dedicated to investing in grocery properties which are an essential part of the UK's feed the nation infrastructure. The Company focuses on grocery stores which are omnichannel, fulfilling online and in-person sales. All of the Company's 55 supermarkets(1) are let to leading UK supermarket operators, diversified by both tenant and geography.

The Company provides investors with attractive, long-dated, secure, inflation-linked, growing income with the potential for capital appreciation over the longer term and targets a 7% to 10% p.a. total shareholder return over the medium term(2) . The Company has increased its dividend target in line with UK RPI inflation each year.

The Company's ordinary shares were admitted to trading on the Main Market of the London Stock Exchange, Specialist Fund Segment, on 21 July 2017.

Atrato Capital Limited is the Company's Investment Adviser.

Further information is available on the Company's website www.supermarketincomereit.com

   (1)   As at 24(th) May, 29 directly owned supermarkets, plus 26 via joint venture 
   (2)   There is no certainty that these illustrative projections will be achieved 

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July 15, 2021 02:00 ET (06:00 GMT)