Supermarket Income REIT is looking to expand
Supermarket Income REIT (SUPR) 111.44p
Gain to date: 6.1%
Original entry point: Buy at 105p, 2 April 2020
As we hoped, groceries-related property investor Supermarket Income REIT (SUPR) has been a solid performer through the coronavirus crisis with the company looking to add to its portfolio in recent weeks.
After its May acquisition of a stake in 26 Sainsbury’s stores through a joint venture with the British Airways pension fund (a deal which involved an outlay of £51 million), the company has confirmed rumours it is in discussions about a sale and leaseback transaction with a major supermarket.
The company’s ability to continue to deliver a reliable stream of income to investors was underpinned by the news it received 100% of rent due for the three months to June.
Independent valuer Cushman & Wakefield has said the company will not need to include a material uncertainty clause for its valuation covering the year to 30 June. Supermarket Income REIT noted this reflected the credit strength of its tenants and sustained demand for assets in the sector.
SHARES SAYS: We continue to see Supermarket Income REIT as a reliable source of dividends at a time when income investors have been hit by a wave of payout cuts and cancellations. Keep buying.