Business
Trading Update
Trading Update.
About this update from Supermarket Income Reit Plc
[{"type":"text","content":"\n \nRNS Number : 6094S Supermarket Income REIT PLC 04 October 2017 \n\n\nSUPERMARKET INCOME REIT PLC \n(the \"Company\")\nLEI: 2138007FOINJKAM7L537\n \nTrading Update\nFor the first quarter to 30 September 2017\n \n \nSupermarket Income REIT plc (LSE: SUPR), the UK supermarket real estate investor, today publishes its maiden trading update for the period from admission of the share capital of the Company to trading on the London Stock Exchange on 21 July 2017 to 30 September 2017.\n \nRapid deployment of funds\nIn the six weeks following its flotation, the Company has invested more than £150 million in three high-quality supermarket properties (the \"Portfolio\"). The Portfolio has a total annualised passing rent roll of £7.9 million and a weighted average unexpired lease term of 17 years.\n \nThe portfolio assets are:\n· Fully let on a long term lease with upward only, annual, RPI-linked rent reviews\n· Strategically important to the tenant with strong trading performance\n· In suburban locations with excellent transportation links\n· On large sites with low site cover, providing future asset management opportunities\n· Already fulfilling the last mile of grocery home delivery and/or click and collect\n \nThese initial investments provide the Company with a high quality property portfolio and underpin the Company's investment objective of delivering low-risk inflation-linked income with excellent asset up-side potential.\n \nStrong financing position\nOn the 30 August 2017, the Company arranged a £100 million credit facility with HSBC, priced at a margin of 160 basis points over 3 month LIBOR, which is currently equivalent to a total cost of debt of 2.2% per annum.\n \nThis attractively priced facility reflects the quality of the underlying properties and strength of the tenant covenants, and will provide flexible capital to fund the growth of the Company's portfolio.\n \nThe Company will continue to target a loan-to-value ratio (LTV) of 30 - 40% in the medium term, which the Directors consider conservative given the low risk nature of the portfolio.\n \n \n \nCommencement of dividends\nThe Company declared its maiden interim dividend of 1.375 pence per share on t...