Supermarket Income REIT gets tailwind from buoyant grocery sector

Supermarket Income REIT plc is a real estate investment trust dedicated to investing in supermarket property forming a key part of the future model of UK grocery.

The company provide investors with long-dated, secure, inflation-linked income with capital appreciation potential over the longer term.

() has launched an offer for subscription of up to GBP10mln via the platform to allow private investors who are either professionally advised or financially sophisticated an opportunity to participate in its latest fundraising.

The fund announced on Friday that it is looking to raise roughly GBP100mln from the issue of 86,956,522 new shares in a placing and offer for subscription at the price of 115p a share.

The PrimaryBid offer will be at the same price, which represents a 4.2% discount to the closing mid-price on 29 September.

Supermarket Income REIT said the proceeds of capital raise will be used to make further investments in UK supermarket real estate.

() announced plans to raise GBP100mln via a placing and an offer for subscription.

Shares will be placed at 115p each, a 4.2% discount to Wednesday’s closing price and a 6.5% premium to the company’s last reported EPRA NTA per share as of 30 June.

continues to be driven along by strong sector tailwinds says Berenberg, which reiterated its share price of 135p and ‘buy’ recommendation on the grocery chain landlord.

The broker expects the recent impressive rate of growth to slow but sees value in the company’s high-quality, omnichannel portfolio of stores, with plenty of asset management potential, including sustainability initiatives.

Negotiating rents has been one of the key issues during the coronavirus crisis: most landlords have been accepting rent deferrals or offering discounts altogether to help their tenants.

But () has stood out after receiving all of its rents for March even before the expected deadline.

()’s fundraising and acquisition pipeline are further steps on a growth plan that RBC Capital Markets expects to make the dividend yield on its shares more attractive.

Based on the combination of a lower cost of capital from being a larger more diversified business and rolling forward forecasts, the investment bank increased its price target 7% to 145p.

And with a 30% implied total return potential and 6% forecast yield, analysts also reiterated their ‘outperform’ rating.

Supermarket Income REIT’s () Ben Green talks to Proactive London’ Katie Pilbeam about the reasons behind the recent rise in UK inflation.

The annual UK inflation rate more than doubled in April, as a rise in energy and clothing costs drove prices higher.

He says for investors they are wondering if this is temporary or sustained and how to protect their portfolios.