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Supermarket Income REIT PLC s asset base is undervalued, says Liberum

Omnichannel supermarkets, with in-store and online operations, should increasingly be valued against distribution warehouses, says Liberum The asset base of Supermarket Income REIT PLC (LON:SUPR), a real estate investment trust focused on supermarket property, is undervalued, said Liberum Capital. It initiated its coverage of the company with a 134p target price and a ‘buy’ recommendation. “We think the shares will be driven by the continued positive underlying revaluation of the supermarket asset base,” said Liberum analysts. Supermarket Income REIT’s rental income is derived from five of the UK’s eight largest grocers who together account for a 65% share of the UK grocery market.

Atrato Capital, the investment advisor to Supermarket Income REIT explain recent rise in inflation

Atrato Capital, the investment advisor to Supermarket Income REIT explain recent rise in inflation Supermarket Income REIT s (LON:SUPR) Ben Green talks to Proactive London Katie Pilbeam about the reasons behind the recent rise in UK inflation.  The annual UK inflation rate more than doubled in April, as a rise in energy and clothing costs drove prices higher. He says for investors they are wondering if this is temporary or sustained and how to protect their portfolios.  For Supermarket Income REIT, he says 86% of its rents are linked to inflation which means they have contractorial rental lifts. Quick facts: Supermarket Income REIT PLC

Supermarket Income REIT PLC acquires Tesco-occupied site in Colchester

“The property has strong underlying fundamentals and forms a key part of the Tesco online fulfilment network. Supermarket Income REIT PLC (LON:SUPR) acquired a Tesco-occupied supermarket in Colchester, Essex from the Standard Life Investments Long Lease Fund for £63mln. Excluding acquisition costs, the purchase price represents a net initial yield of 4.5%, the REIT said. The site was refurbished in 2011, it added, and comprises a 54,300 sq ft net sales area supermarket, a 16-pump petrol filling station and 570 parking spaces. The store has several online fulfilment distribution docks supporting Tesco s online grocery business across the region. It is being acquired with an unexpired lease term of 19 years, with annual, upwards only, inflation-linked rent reviews.

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