Supermarket Income REIT PLC (LSE:SUPR) said its recent fundraise was significantly oversubscribed even though it was doubled in size to GBP200mln from an original GBP100mln.
Around 174mln new shares will now be issued at a price of 115p per share.
“Notwithstanding the increase in the initial issue, investor demand substantially exceeded the maximum size of the initial issue and as such, a material scaling back exercise was undertaken,” Supermarket REIT said in a statement.
Nick Hewson, chairman, added “demand for this issue has been exceptionally strong, resulting in us doubling the size of the capital raise.
“With the GBP180mln of Target Assets already under exclusivity and a robust pipeline of GBP420mln in potential further acquisitions, we are confident that we will be able to deploy proceeds efficiently into a number of attractive omnichannel supermarkets let to some of the UK’s largest supermarket operators to deliver our investors with a stable and growing, inflation-linked income return.”
Hewson applied for just short of 41,000 shares in the placing with other directors applying for close to 86,000.
Supermarket Income’s strategy is to acquire omnichannel properties let to the major supermarket chains that have the potential to become online fulfilment centres for the grocers as well as shops.
Broker Peel Hunt published a new NAV forecast of 112p for 2022 but its EPS drops to 6.5p to account for the initial dilution. For 2023, the NAV forecast is 116p,
“The issue price reflects a small 3% premium to our June 2021 EPRA NTA and offers shareholders a 5.2% dividend yield,” added the broker.
Shares rose 0.4% to 116p.
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