Supermarket Income Reit has secured a debt facility extension with Japanese bank Sumitomo Mitsui Banking Corporation.
In a stock exchange announcement this morning (3 April), the trust revealed the unsecured debt facility has been increased by £37.5m to £104.5m.
The additional £37.5m will be priced at 1.55% above the Sterling Overnight Index Average (Sonia), while the existing £67m remains at 1.4% above Sonia.
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The interest-only facility is set to mature in September 2026.
Ben Green, director of Atrato Capital Limited, investment adviser to Supermarket Income Reit, said: “We are pleased to continue our relationship with SMBC, a key funding partner to the company.
“Our strong relationships with existing lenders, and quality of the portfolio, continues to allow the company to access debt financing at attractive margins.”
Stifel reaffirms ‘Buy’ rating
Stifel analysts reacted positively to the move by reaffirming the trust’s ‘Buy’ rating.
They said: “We think the investment case remains compelling, with today’s debt facility extension at a favourable 155bps margin over Sonia showing lenders’ willingness to extend credit to the company even when the wider real estate sector remains somewhat out of favour.”
The trust currently trades at a 14.9% discount, according to the Association of Investment Companies.
Last month, Supermarket Income Reit revealed it had purchased a Tesco omnichannel supermarket in Stoke-on-Trent for £34.7m.
