It might be good gains too over long term from here also … good luck!
From Twitter
This is interesting, may provide a gee up to #SUPR which owns lots of these type of properties.
SUPERMARKET INCOME REIT PLC
(the “Company”)
£170 MILLION DEBT REFINANCING UPDATE
Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust providing secure, inflation-linked, long income from grocery property, announces the completion of a £170 million[1] refinancing through its first private placement debt issuance and a new unsecured bank facility.
€83 million private placement debt issue
The Company has signed and completed an agreement with a group of institutional investors for a private placement of €83 million of new senior unsecured notes (the “Notes”). The Notes have a maturity of seven years and a fixed rate coupon of 4.44%.
The Notes were priced on 11 July 2024 and the note purchase agreement was signed on 25 July 2024. Proceeds were received on 25 July and will be used to refinance euro drawings under an existing secured revolving credit facility with HSBC, which had been used to fund the recent acquisition of a portfolio of 17 stores from Carrefour.
£100 million debt refinancing
The Company has also refinanced its existing £97 million secured debt facility with Deka through a new £100 million unsecured debt facility with ING Bank N.V., London Branch (“ING”).
The new ING facility (the “Facility”) comprises a £75 million term loan and a £25 million revolving credit facility. The interest-only Facility has a maturity of three years and has two one-year extension options at the lender’s discretion. The Facility is priced at a margin of 1.55% over SONIA and benefits from forward starting hedges, which cap the interest rate at an all-in cost of 3.0% until January 2026.
Following the debt refinancing, the Company has a pro-forma LTV of 37%."
From RNS
What is very noticeable about the interest rate is just how low they are.
The fixed has a coupon of 4.4% for 7 years.
I struggle to believe that a RCF will be available at 4.4% in the next 3-5 years.
The RCF is SONIA plus 1.55% again the 1.55% is well below what I see elsewhere.
The reason is simple enough 100% rent collection. And clearly the lenders expect it to continue to receive 100% rent collection.
It’s also worth noting that the fall NAV (due to the rise in the discount rate) appears larger than other REITs.
So a good chance that the discount rate will fall significantly when interest rates fall?
Presently a 0.8% short on SUPR by JPMorgan.
That maybe holding it back but sentiment only.
My view is the risk/reward here is very good.
4 Likes
SUPR
7 November 2024
Supermarket Income REIT PLC, announces that on 6 November 2024, Nick Hewson, Chair and Non-Executive Director of the Company acquired 75,000 Ordinary Shares in the Company (“Ordinary Shares”).
He now owns 1,405,609 Ordinary Shares in the Company.
“Following the above transfers of shares, Nick Hewson continues to hold 1,405,609 Ordinary Shares in the Company.”
Greedy!
2 Likes
Directors purchases 20th and the 23rd December
https://www.lse.co.uk/rns/SUPR/
Purchase on the 20th
Supermarket Income REIT PLC, announces that on 19 December 2024, that Passaic Services Limited, a PCA of Benedict Green acquired 112,621 Ordinary Shares in the Company
Following the above acquisition of shares, Benedict Green holds 1,286,422 Ordinary Shares in the Company and persons closely associated with Benedict Green hold 1,501,740 Ordinary Shares in the Company. Together, Benedict Green and closely associated persons now hold a total of 2,788,162 Ordinary Shares in the Company.
23rd December
Supermarket Income REIT PLC, announces that on 20 December 2024, Sapna Shah acquired 48,781 Ordinary Shares in the Company
Following the above acquisition of shares, Sapna Shah holds 118,862 Ordinary Shares in the Company.
Still one firm shorting SUPR, JPMorgan
https://www.lse.co.uk/ShareShortPositions.html?shareprice=SUPR&share=Supermarket-Income
Odd disagreement between directors with inside knowledge and a very well resourced fund manager like JPMorgan?
The directors are not just showing support for the company by buying a few shares as these purchases and holdings are significant.
What does JPMorgan think is the reason for (in there opiion) the overvaluation? Is it specific to the REIT sector or SUPR itself?
Note BlackRock are increasing there holdings and possibly lending some of the shares to JPMorgan. So the rumour goes!
Allowing them (BlackRock) to buy more cheaply?