REG - Supermarket Inc REIT - DEBT REDUCTION AND REFINANCING UPDATE

Supermarket Income REITAnnouncement

15/09/2023 07:00

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RNS Number : 5259M  Supermarket Income REIT PLC  15 September 2023

15 September 2023

 

SUPERMARKET INCOME REIT PLC

(the "Company")

 

DEBT REDUCTION AND REFINANCING UPDATE

 

Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust
providing secure, inflation-linked, long income from grocery property in the
UK, announces the completion of a comprehensive debt refinancing exercise.

 

Debt refinancing

 

The debt refinancing exercise involved the cancellation of two shorter-dated
debt facilities, the reduction and extension of an existing debt facility and
the completion of a new unsecured debt facility with a new lender.

 

Overall, the Company has reduced its loan-to-value ("LTV") ratio to 34%(1)
(#_ftn1) (December 2022: 40%) and the weighted average term of debt is now in
excess of four years(2) (#_ftn2) . Over 60% of the Company's debt facilities
are now unsecured (December 2022: 48%) and the Company has available undrawn
committed facilities in excess of £100 million.

 

·    The Company has cancelled two of its shorter-dated debt facilities,
including the £77.5 million secured revolving credit facility ("RCF") with
Barclays and Royal Bank of Canada, and the £62.1 million unsecured debt
facility provided by a syndicate of relationship banks

 

·     The existing secured interest-only £150 million RCF with HSBC has
been refinanced with a new £50 million, secured, three-year RCF with a £75
million uncommitted accordion option. The new RCF has two one-year extension
options and a margin of 170 bps over SONIA

 

·    A new £67 million, unsecured, three-year debt facility has been
completed with Sumitomo Mitsui Banking Corporation ("SMBC"). The debt facility
has two one-year extension options and a margin of 140 bps over SONIA

 

Hedging update

 

The Company has also used the value of its existing in-the-money interest rate
hedges to extend the term of its hedging arrangements to match the maturity of
its debt facilities at no additional cost to the Company. 100% of the
Company's drawn debt is now either fixed rate or hedged to a fixed rate,
representing a weighted average all-in cost of debt of 3.1%.

 

Ben Green, Director of Atrato Capital Limited, the Investment Adviser to
Supermarket Income REIT, said: 

 

"We are very pleased to be working with new lender SMBC in the refinancing of
the Company's debt facilities whilst benefitting from the continuing support
of our existing relationship banks. We have also been able to extend hedging
to further protect the Company's balance sheet at no additional cost.

 

The Company continues to be able to access debt financing at attractive
margins, however, given the current macroeconomic environment the Board
considers it prudent to maintain a lower LTV."

 

 

 

 FOR FURTHER INFORMATION                                                                           
 Atrato Capital Limited                                                                           +44 (0)20 3790 8087 
                                  
 Steven Noble / Rob Abraham / Chris McMahon                                                       ir@atratocapital.com  

 Stifel Nicolaus Europe Limited                                                                   +44 (0)20 7710 7600 
 Mark Young / Matt Blawat / Rajpal Padam                                                           
                                                                                                   
 Goldman Sachs International                                                                      +44 (0)20 7774 1000

 Jimmy Bastock / Tom Hartley

 FTI Consulting                                                                                   +44 (0)20 3727 1000 

  
 Dido Laurimore / Eve Kirmatzis / Andrew Davis                                                    SupermarketIncomeREIT@fticonsulting.com  
                                  

NOTES TO EDITORS: 

Supermarket Income REIT plc (LSE: SUPR) is a real estate investment trust
dedicated to investing in grocery properties which are an essential part of
the UK's feed the nation infrastructure. The Company focuses on grocery stores
which are omnichannel, fulfilling online and in-person sales. All of the
Company's supermarkets are let to leading UK supermarket operators,
diversified by both tenant and geography. 

 

The Company provides investors with attractive, long-dated, secure,
inflation-linked, growing income with the potential for capital appreciation
over the longer term and targets a 7% to 10% p.a. total shareholder return
over the medium term((1)).

 

The Company is listed on the premium segment of the Official List of the UK
Financial Conduct Authority and its Ordinary Shares are traded on the Main
Market of the London Stock Exchange, having listed initially on the Specialist
Fund Segment of the Main Market on 21 July 2017.

 

 

Atrato Capital Limited is the Company's Investment Adviser. 

 

Further information is available on the Company's website
www.supermarketincomereit.com (http://www.supermarketincomereit.com/)

 

LEI: 2138007FOINJKAM7L537

 

1.     There is no certainty that these illustrative projections will be
achieved

 

 

Stifel Nicolaus Europe Limited, which is authorised and regulated in the
United Kingdom by the Financial Conduct Authority, is acting exclusively for
Supermarket Income REIT plc and no one else in connection with this
announcement and will not be responsible to anyone other than the Company for
providing the protections afforded to clients of Stifel Nicolaus Europe
Limited nor for providing advice in connection with the matters referred to in
this announcement.

Goldman Sachs International, which is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential
Regulation Authority in the United Kingdom, is acting exclusively for
Supermarket Income REIT plc and no one else in connection with this
announcement and will not be responsible to anyone other than the Company for
providing the protections afforded to clients of Goldman Sachs International
nor for providing advice in connection with the matters referred to in this
announcement.

 

 1  Based on last published portfolio valuation as at 31 December 2022 plus
acquisitions at cost. The Company will publish its 30 June 2023 valuation in
its annual results on 20 September 2023.

 2  Including uncommitted extension options

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