Supermarket Income REIT (SUPR) has launched a £100m share issue to fund the purchase of three supermarkets in Manchester, Edinburgh and Halifax for £118m and a further pipeline of six assets for £98m. The fund raise will comprise of a placing to professional investors and an offer to private investors through Retail Book. Chief executive Rob Abraham said: “This fundraise will enable us to continue executing SUPR’s growth strategy, and is the latest step towards our ambition of doubling the size of our portfolio. The pipeline of assets will be earnings-enhancing and aligns with our portfolio strategy of acquiring well-located grocery assets with strong trading histories, let on resilient triple-net leases.”
QuotedData senior analyst Matthew Read said: “In a property sector where large discounts have generally closed the door on new equity issuance, it is encouraging to see a company returning to the market to raise fresh capital. SUPR is one of the few REITs whose shares have been trading around net asset value (NAV), making this fundraise possible and giving it a clear competitive advantage over discounted peers.
“The proposed acquisitions appear sensibly priced and should be earnings-accretive, while the enlarged portfolio ought to improve liquidity and spread the company’s relatively fixed cost base more efficiently. Shareholders will, however, want to scrutinise the final issue price, particularly as SUPR is seeking authority to issue the shares at a discount to NAV and, while we’re generally not a fan of this, provided dilution is kept to a minimum, this looks like a sensible use of the platform and a welcome sign that the equity market is beginning to function again for at least the strongest listed property companies. We’re also pleased to see that this capital raise allows retail investors to participate too.”
Tufton Assets (SHIP), the £264m shipping fund, has reported its strongest quarterly performance in nearly five years with net asset value per share rising 13% from $1.395 to $1.576 in the three months to 30 June. It said the NAV uplift was driven by rising charger rates and higher vessel values with the dry bulk market buoyed by demand from Asia and the tanker market boosted by trade route reconfiguration following the closure of the Strait of Hormuz. Encouraged by the strong outlook, the fund has raised its target annual dividend by 10% from $0.0 per share to $0.11, meaning a third quarter dividend of $0.0275p will be paid. Dividends are forecast to be covered 1.9 times by earnings in the next 18 months.
BioPharma Credit (BPCR) has agreed to invest up to $45m in a new senior secured loan to Kestra Medical Technologies of the US. The Nasdaq-listed digital healthcare company makes wearable medical devices such as a vest that monitors a patient’s heart rhythms and can deliver a life-saving defibrillation shock if needed. The investment will be in three tranches alongside BioPharma Credit Investments V fund.
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