Intention to amend Investment Advisory Agreement

Supermarket Income REIT PLC

05 November 2024

 

5 November 2024

SUPERMARKET INCOME REIT PLC

(the "Company")

INTENTION TO AMEND INVESTMENT ADvisory agreement

Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust with secure, inflation-linked, long-dated income from grocery property, announces it has reached an agreement with its investment adviser, Atrato Capital Limited (the "Investment Adviser"), which will see the basis of the management fee calculation move from net asset value to market capitalisation, effective from 1 July 2025. The current fee thresholds and rates applied to the net asset value-based calculations will be retained in the updated agreement, as shown below (the "IAA Fees"). 

Threshold	Fee rate on revised market capitalisation basis
Up to £500 million	0.95%
Between £500 million to £1 billion	0.75%
between £1 billion to £1.5 billion	0.65%
Between £1.5 billion to £2 billion	0.45%
Above £2 billion	0.40%

It is also proposed that the Company will transfer its outsourced AIFM, Company Secretarial and payments processing functions to the Investment Adviser, subject to a separate fee.

A combination of the change in IAA Fees to market capitalisation and transfer of the above functions to the Investment Adviser will deliver material cost savings to the Company.

The finalisation of the new agreements will be subject to shareholder approval and UK Listing Rule 11.5.12. Further detail will be announced as appropriate.

Nick Hewson, Chair of Supermarket Income REIT, said:   

"We have worked closely with the Investment Adviser to identify ways to deliver both material cost savings and even closer alignment with the interests of the Company and its shareholders. Once documented, these initiatives are expected to enhance earnings and are an important step towards our goal of having one of the lowest EPRA cost ratios in the UK REIT sector."  

FOR FURTHER INFORMATION
Atrato Capital Limited	[phone]
Rob Abraham / Mike Perkins / Chris McMahon	[e-mail]
Stifel Nicolaus Europe Limited	[phone]
Mark Young / Rajpal Padam / Madison Kominski
Goldman Sachs International  Tom Hartley / Hannah Mackey	[phone]
FTI Consulting	[phone]
Dido Laurimore / Eve Kirmatzis / Andrew Davis	[e-mail]

NOTES TO EDITORS:   

Supermarket Income REIT plc (LSE: SUPR) is a real estate investment trust dedicated to investing in grocery properties which are an essential part of the feed the nation infrastructure. The Company focuses on grocery stores which are omnichannel, fulfilling online and in-person sales. The Company's supermarkets are let to leading supermarket operators in the UK and Europe, diversified by both tenant and geography.

The Company's assets earn long-dated, secure, inflation-linked, growing income. The Company targets a progressive dividend and the potential for capital appreciation over the longer term.

The Company is listed on the Closed-ended investment funds category of the FCA's Official List and its Ordinary Shares are traded on the LSE's Main Market. 

Atrato Capital Limited is the Company's Investment Adviser.   

Further information is available on the Company's website www.supermarketincomereit.com   

LEI: 2138007FOINJKAM7L537 

Stifel Nicolaus Europe Limited, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for Supermarket Income REIT plc and no one else in connection with this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Stifel Nicolaus Europe Limited nor for providing advice in connection with the matters referred to in this announcement.

Goldman Sachs International, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom, is acting exclusively for Supermarket Income REIT plc and no one else in connection with this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Goldman Sachs International nor for providing advice in connection with the matters referred to in this announcement.

 

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