Share Name Share Symbol Market Type Share ISIN Share Description
Supermarket Income Reit Plc LSE:SUPR London Ordinary Share GB00BF345X11 ORD GBP0.01
  Price Change % Change Share Price Shares Traded Last Trade
  -3.00 -2.51% 116.50 9,179,073 16:29:42
Bid Price Offer Price High Price Low Price Open Price
116.00 116.50 120.50 116.00 119.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment Trusts 81.96 12.60 9.2 1,444
Last Trade Time Trade Type Trade Size Trade Price Currency
17:57:32 O 4,418 118.728 GBX

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Date Time Title Posts
01/7/202217:19An income play1,043

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Supermarket Income Reit Daily Update: Supermarket Income Reit Plc is listed in the Real Estate Investment Trusts sector of the London Stock Exchange with ticker SUPR. The last closing price for Supermarket Income Reit was 119.50p.
Supermarket Income Reit Plc has a 4 week average price of 116p and a 12 week average price of 116p.
The 1 year high share price is 135p while the 1 year low share price is currently 114.50p.
There are currently 1,239,868,420 shares in issue and the average daily traded volume is 7,858,492 shares. The market capitalisation of Supermarket Income Reit Plc is £1,444,446,709.30.
chucko1: The cap is higher than the funding rates referred to (by Peel). They BENEFIT from higher rates so long as the rates do not increase significantly further AND that rates and inflation remain in approximate step. So far, they clearly have. I wonder if the author at Peel has considered the other side of the equation, other than just rates moving. But there will be a lot of broker notes considering the effect of higher rates on the earnings of companies and ITs. In general they have been prodded by the realisation that 10 year swap rates have risen from 0.7% to 2.3% the past year. And there will be cases where it would have been better to have fixed, for sure, but that is the perennial cry after the fact and may NOT have been the correct course of action at the time, a priori. You may recall the agency decrying the acts of the Chancellor in not issuing long-dated gilts at such lower yields, (in relation to QE). On the surface, how could one argue? Except the other effects of doing so may be greater, but not immediately obvious. Back to SUPR. I find it very difficult to believe Steve Windsor et al. are not fully on top of the risk management aspects of this. They were Managing Directors in GS's FICC division, and anyone there worth their salt (they all are) will have sensitised the Trust's performance to these varying rates. It is for these reasons I have added, (and I previously sold at different prices owing to the size of the premium). Not that I see a high premium as a certain negative, but I recognise that other people do see it this way and there are enough head-winds in markets as it is - which includes the relative value of this REIT to index-linked gilts in some smallish part.
chucko1: Odey SWAN has also been half its current value with, on average, twice the volatility of SUPR. SWAN has only in recent months, not for a large percentage of either 3 or 5 years, had the mega-short in Gilts. The drawdown on SWAN has been as high as 62% (2016/17), and roughly 15% (March 2020) on SUPR. Over any period, SWAN has paid no dividends whereas SUPR has paid out 27p or so over the past 5 years. One might also say that wine has gone up by a similar amount. (of course, different wines pay differing dividends!)
jonwig: Makinbucks - yes, there's a scrip option. Interestingly, one or two companies whose shares have been rising recently have cancelled their scrip option (eg. FSFL). It's easy to see why: SUPR announced their scrip reference price of 124.5p on 28 April, so holders will be getting discounted shares. Anyone buying after receiving the dividend on friday is likely to have to pay a lot more! Of course if the share price is falling, it works the other way.
rik shaw: It went ex dividend on 21/4. Friday is payment date so no reason to impact share price.
brexitplus: Good share price movement over the last few day and dividend on Friday so expect a small move back.
chucko1: No - it stuck at the price from before the issue (i.e. 115p + div), and then, once a certain amount had cleared, went a fair amount higher. Check out the price chart from very early October 2021 to about 19th October. Fell immediately to offer price and took about a month to return to pre-offer price (121p, or 122.5p div. adj.). The fact that the current share price is 3.5p above the offer price (corrected for dividend) suggests a hot offer. It is likely the case owing to the fact that it had recently been seen at 132p. However, that may in part be explained by a report suggesting a "return of capital" owing to the Sainsbury's return of leases. Hardly!! In the previous offer, PrimaryBid was allocated in full, as was the open Offer (there is not one here), but Placement only 38% allocated even though total offer size was doubled. I expect an increase in offer again and perhaps only a 30% allocation in the placement. Well, anyway, I have applied through both channels.
brexitplus: RBC Capital Markets set a target price of 150 GBX for the company, which when compared to the Supermarket Income REIT PLC share price of 125 GBX at opening today (13/04/2022) indicates a potential upside of 17.0%. Trading has ranged between 111 (52 week low) and 133 (52 week high) with an average of 3,328,980 shares exchanging hands daily. The market capitalisation at the time of writing is £1,231,932,000.
metis20: From the Edison research note:- "Debt funding capacity remains for further acquisitions and the distribution of cash from SUPR’s highly successful indirect investment in the Sainsbury’s Reversion Portfolio (described in detail below) in the middle of calendar 2023 will release significant cash (we estimate £184m) for redeployment. We assume deployment will be into further asset growth, but should acquisition yields compress to a level where this no longer creates value we expect SUPR to consider alternative options, including a return of capital to shareholders." Has the share price been held back partly by concern over another fund raise? If so the above extract may have helped to reduce that concern. Could help explain this week's share price rise.
williamcooper104: January started with a bang for Supermarket Income REIT, the investment trust rapidly scaling its portfolio with assets let to the UK's main grocers.Clarity emerged last week over the REIT's position in a £400m joint venture it has with Sainsbury's and British Airways Pension Trustees: Sainsbury's is to exercise the second purchase option it has in the joint venture and buy back a further eight stores.Already this month a £136.5m increase to its credit facility with Barclays and Royal Bank of Canada was secured, taking the total size of the facility to £250m. And Supermarket Income did what it does best, adding another two stores to its platform for close to £55m.The trust is advised by its investment adviser, Atrato Capital. The firm was founded by Ben Green and Steve Windsor, who both held senior positions at Goldman Sachs before launching the investment advisory business.React News caught up with Green to discuss mispricing on the public markets, expansion plans and what the big private equity deals in the sector mean."Relative to the other REITs, we seem to be trading pretty cheaply given the strength of the portfolio in the face of the inflation as around 85% of our leases are index-link"BEN GREENHow big can Supermarket Income's portfolio get?There's about £110bn of supermarket property in the UK, of which around £35bn is owned by investors. We think the realistic market is about 10% of that. So that would be £3.5bn of gross value and a market cap of circa £2bn.There is an increasing number of assets to buy, and higher quality ones too. We've got a database of all of the leased supermarkets in our universe. When we do the bottom-up analysis, those numbers stack up as well. So there's another £1.5bn of supermarkets we think we could buy.Ben Green, AtratoYour investment criteria is very much based on traders, and not so much location specific, correct?Yes. We prefer to buy a long-lease with inflation uplifts in the regions, rather than buying it on the high street at a 3.5% net initial yield.Investors might not know where Doncaster is, but we know these markets well.Food, PenSo willing to travel for yield then? What was the rationale behind your first deal in Northern Ireland?If it is a really strong trading store, then yes. Geographical diversification will allow us to grow, but Northern Ireland is a relatively small part of the UK, so exposure should be relative in size to our wider portfolio.As long as it's a dominant store, strong trading, and let on a long lease, then it's really, really hard for the operators to move these stores. And that's becoming harder with the sustainability agenda. It is actually going to get harder and harder to knock down stores and take a replacement just down the road.Will you be focusing more on discounter stores?We'd like to have more exposure to them and have been gradually building a presence. It's just going to take time. Our ethos is that we're looking to buy grocery assets that are going to be operated for a really long time. For larger stores, it's the online capabilities that underpin that."I think in the next two or three years we'll add Aldi, Lidl and a few more M&S sites to the portfolio"For discounters it's a different market, they don't need to do online. They're a smaller format, but there is a bigger risk of the sites being more generic, because they're smaller. You need to be very careful about picking your sites. As a result, we've been cautious in getting into that market. I think in the next two or three years we'll add Aldi, Lidl and a few more M&S sites to the portfolio.Apparel, Clothing, ShirtAsda's new owners, the Issa brothersHas your world got smaller or bigger due to the private equity deals for Morrisons and Asda?It's interesting because, on the one hand, you've got people who are worried that "oh, well it's going to get much bigger" because of sale-and-leaseback deals. We don't think that's very likely because debt finance is so cheap; it's actually cheaper than doing leasing."We don't think there's going to be a flood of asset sales by the new owners of Morrisons and Asda"In terms of what we can buy, it hasn't changed that much because we're always really underwriting the store dynamic. So, all things being equal, we'd rather be buying stronger companies than weaker companies of course.The two deals (Asda and Morrisons) seem to have highlighted that the public markets weren't pricing the real estate correctly in the share price. That must give you significant comfort?We feel it makes it clear that we should see some further yield compression. It's just the gap between bonds and property shares. And obviously you've also got inflation in the mix. So you are actually getting a much higher return (from property shares), but now you're getting a sort of "super-return", relative to bonds which just seems sort of irrational.I mean, if you look at us, relative to the other REITs, we seem to be trading pretty cheaply given the strength of the portfolio in the face of the inflation as around 85% of our leases are index-linked. Has Atrato boomed over the past two years?We started 2020 with seven people and will finish this year with around 40. Most focused on SUPR, but also our long income product and Atrato Onsite Energy (it raised £150m through a significantly oversubscribed issue IPO last month).What are your future plans for Atrato?Look three years forward, and we'd want four or five investment strategies. I'm often asked about whether we should do European supermarkets, and if the right opportunity surfaced, then we'd probably look to do it with a separate fund."I think people will want you to have pan-European exposure. And everything hits different in every country, right? It's regulation, tax, etc etc. so we're at the evaluation stage on that"I think people will want you to have pan-European exposure. And everything hits different in every country, right? It's regulation, tax, etc etc. so we're at the evaluation stage on that.Investors must look at you as a successful investment manager that can also provide access to deal flow. Would you explore a sale should that situation arise?No, I think we want to continue to grow this. It's been a lot of fun. We've got a really good team. They've been growing with us too. We're in it for the long run, really.What's interesting is the attraction of platform management teams. We're talking to a couple of people at the moment who've got great ideas but they don't have the platform to do it. It costs if you want to launch and externally manage an alternative investment trust or retail vehicle.And we're able to do that and take a risk on the costs, then plug it into the platform that we've already got. That's quite an attractive proposition.With inflation on the rise will the long-dated inflation linked rentals in the grocery space bring more buyers to the market next year? Can you see this impacting pricing?Yes. we are seeing that already with yields for long leased supermarkets with inflation linked rent reviews at c.4.4% vs 4.8% in 2019. In addition, grocery is non-discretionary expenditure and historically operators have been very efficient in passing through inflationary pressure in the supply chain. As we see enhanced inflationary growth, we are also starting to see that filter through to supermarket ERVs. That underlines why we think this sector is a strong source of inflation protection. However not all supermarkets are alike, and you need to be a sector specialist to select stock that offers long term value and inflation protection. A key pillar of SUPR's investment strategy is to invest in omnichannel stores. These are larger supermarkets that provide normal in store shopping, but they also operate as last mile online grocery fulfilment centres. We believe these stores not only benefit from conventional in store grocery sales but are also uniquely positioned to benefit from any increase in online grocery sales.How are you making your supermarkets more sustainable?Our properties are typically leased as full repairing and insuring (FRI), which gives the tenant control over the property during the lease term along with responsibility for all external and internal maintenance. That said, we are committed to improving the sustainability of our assets, for example by improving their energy efficiency, and do so either directly where we have the opportunity or by partnering with our tenants to implement a range of initiatives. Importantly, our tenants are also committed to the sustainability agenda and have set their own ambitious net zero carbon targets. Initiatives where we partner with our tenants include the installation of onsite solar photovoltaic panels. Given the scale of our assets, the environmental benefits, and reduction in energy costs for the operator there are clear benefits for onsite renewable energy generation – primarily commercial rooftop solar systems. As highlighted above, one of the products in the Atrato Group is Atrato Onsite Energy (LSE: ROOF). ROOF is the only investment trust dedicated to providing onsite renewable energy in the UK, and the boards of SUPR and ROOF have entered into an agreement to expedite the roll out of rooftop solar across the portfolio. Around three quarters of our portfolio has an EPC rating of C or above. We have ongoing programmes underway to enhance energy efficiency across the portfolio and we aim to only acquire assets with EPC ratings or C or above, or where opportunities have been identified to improve the rating through active asset management initiatives.SUPR has recently declared its support for the Task Force on Climate-related Financial Disclosures.
perfect choice: Hi bluntnib, think one comment you made isn't fully right in that there is a route to avoid costs, so will not be incurred anyway. If you buy via the PB in a SIPP you will not incur any dealing or stamp duty costs and just pay for the shares at 115p. So there are ways to take part in this placing without incurring the costs. I took part in the October 2020 placing at 104p in the same manner and incurred no costs at all apart from the placing price for the shares. I've also received the same corporate action statement as Bscuit and no dealing charges is declared. Now you make the valid point to just watch out for the share price when SUPR goes ex-div this week. If it dips below 115p enough then those dealing & stamp duty costs could well be covered with a price below 115p to buy, subject to how many shares you want to buy and how far below 115p the buy price is to cover those costs. If that happens I expect it to be short lived as buyers take up a temporary market opportunity. Occasionally I have seen that to be the case if it does occur but just do not expect the SUPR offer price to drop below 115p ex-div. I suppose I'll find out on the 7th!
Supermarket Income Reit share price data is direct from the London Stock Exchange
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