Business
Dividend, rental income and corporate update
Dividend, rental income and corporate update.
About this update from Supermarket Income Reit Plc
[{"type":"text","content":"\n \n \n RNS Number : 7913H\n Supermarket Income REIT PLC\n 27 March 2020\n \n \n \n SUPERMARKET INCOME REIT PLC\n (the \"Company\")\n \n \n \n \n REAFFIRMATION OF dividend, RENTAL INCOME AND CORPORATE UPDATE \n \n \n Supermarket Income REIT plc (LSE: SUPR) the real estate investment trust providing secure, inflation-protected, long income from \n grocery propert\n y in the UK,\n reaffirms its dividend and provides a rental income and corporate update.\n \n \n \n \n \n Determination of rent reviews and successful collection of quarterly rent\n \n \n \n \n \n The Company announces agreed rental increases from the two rent reviews due in the quarter. The review at the Tesco superstore in Lime Trees, Bristol, has resulted in a Retail Prices Index (RPI) increase of 2.2% from March 2020. The rent has increased from £1.58 million to £1.62 million.\n \n \n \n \n \n The review at the Morrisons supermarket in Hillsborough, Sheffield, has resulted in an increase based on five years of RPI of 13.0% from October 2019. The rent has increased from £2.54 million to £2.87 million per annum. \n \n \n \n \n \n The total rent from the Company's portfolio has therefore increased from £28.03 million to £28.4 million following these reviews.\n \n \n \n \n \n The Company confirms receipt of 100% of the expected March 2020 quarterly rental payments.\n \n \n \n \n \n \n \n \n Reaffirmation of the dividend\n \n \n \n \n \n As a result of the above, the Company reaffirms its intention to pay its third-quarter interim dividend in line with expectations and as per the normal timetable. The third-quarter dividend is due to be announced on 8 April 2020. \n \n \n \n \n \n \n \n \n Corporate update\n \n \n \n \n \n While it is too early to fully understand the long-term implications of the ongoing health crisis, the Company has a robust balance sheet and is in a strong position to continue operating as usual despite the wider uncertainty. After the payment of the third-quarter dividend, the Company expects:\n \n \n \n \n \n · \n A net loan-to-value ratio (LTV) of 37.5% versus an LTV covenant of 60.0%\n \n \n · \n Interest cover of 6.8x versus a debt covenant of 2.0x\n \n \n · \n Cash balances of £32 million\n \n \n \n \n \n Whilst all supermarkets in th...