The trust invests in sites occupied by the major supermarket chains such as Tesco, Sainsbury’s, Morrisons and Waitrose and has identified £400mln worth of omnichannel sites that meet its criteria of size and online fulfilment potential.
Property funds having to meet redemptions are one source of sites, it said, and due diligence has already been carried out on three worth £135mln in total.
Since lockdown was introduced in March, Supermarket Income has spent £240mln on new additions to its portfolio.
The REIT also announced it was increasing its dividend target for 2021 to 5.86p after raising the dividend by 4% to 5.8p in the year to June just ended.
Total net assets more than doubled to £477mln over the period while its net asset value (NAV) rose by 4% to 101p.
Supermarket Income’s rent roll increased by 49% to £28.7mln, with earnings 70% higher at £16.8mln.
The trust noted it had received 100% of rental payments due over the past year.
In rthe results statement, Nick Hewson, Supermarket Income’s chairman, said: “This has been another year of solid performance by the Group in which we have generated a Total Shareholder Return of 11.6%.
“In an environment where income has become increasingly scarce, our highly specific investment strategy continues to provide our investors with stable, long-term, inflation-protected income, confirming our belief that supermarket real estate assets remain one of the most compelling asset classes in the UK investment market.”
The new shares will be issued at 104p, a 6.3% discount to the closing price last night.
Published at Thu, 17 Sep 2020 07:05:00 +0000-Supermarket Income REIT raises £150mln to snap up prime sites as others divest