REG - Supermarket Inc REIT - Dividend, rental income and corporate update

Supermarket Income REITAnnouncement

27/03/2020 07:00

RNS Number : 7913H
  
Supermarket Income REIT PLC
  
27 March 2020
  
 

SUPERMARKET INCOME REIT PLC
(the "Company")
  
REAFFIRMATION OF dividend, RENTAL INCOME AND CORPORATE UPDATE 
Supermarket Income REIT plc (LSE: SUPR) the real estate investment trust providing secure, inflation-protected, long income from grocery property in the UK, reaffirms its dividend and provides a rental income and corporate update.
 
Determination of rent reviews and successful collection of quarterly rent
 
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.
 
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. 
 
The total rent from the Company's portfolio has therefore increased from £28.03 million to £28.4 million following these reviews.
 
The Company confirms receipt of 100% of the expected March 2020 quarterly rental payments.
 
 
Reaffirmation of the dividend
 
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. 
 
 
Corporate update
 
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:
 
·     A net loan-to-value ratio (LTV) of 37.5% versus an LTV covenant of 60.0%
·     Interest cover of 6.8x versus a debt covenant of 2.0x
·     Cash balances of £32 million
 
Whilst all supermarkets in the portfolio continue to operate as normal, the safety of its staff, its tenants and their customers are of paramount importance to the Company. The Company remains in regular dialogue with its tenants and partners and will act in accordance with all recommendations given by relevant authorities. 
For further information, please contact:
 
Atrato Capital Limited                                  +44 (0)20 3790 8087
Ben Green
Steve Windsor
Steve Noble
 
Stifel Nicolaus Europe Limited                   +44 (0)20 7710 7600
Mark Young
Matthew Blawat
 
Tavistock                                                          +44 (0)20 7920 3150
Jeremy Carey
James Whitmore
 
NOTES TO EDITORS:
Supermarket Income REIT plc (LSE: SUPR) is a real estate investment trust dedicated to investing in supermarket properties that form a key part of the future omnichannel model of grocery and let to leading UK supermarket operators.
The Company provides investors with attractive, long-dated, secure, inflation-linked, growing income with the potential for capital appreciation over the longer term and targeting a 7% to 10% p.a total shareholder return over the medium term. The Company has increased its dividend target for the year ending 30 September 2020 in line with UK RPI inflation to 5.80 pence per share, payable in quarterly instalments.
The Company's ordinary shares were admitted to trading on the Main Market of the London Stock Exchange, Specialist Fund Segment, on 21 July 2017.
Atrato Capital is the Company's Investment Adviser.
Further information is available on the Company's website www.supermarketincomereit.com
LEI: 2138007FOINJKAM7L537
 

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