Supermarket Income Reit overhauls debt financing

Investment trust Supermarket Income Reit said on Friday that it has undertaken a major debt refinancing.

The firm has cancelled two shorter-dated debt facilities: a £77.5m revolving credit facility (RCF) with Barclays and Royal Bank of Canada, and £62.1m provided by a syndicate of banks.

In addition, an existing interest-only £150m RCF with HSBC has been refinanced, and a new unsecured £67m, three-year debt facility struck with new lender Sumitomo Mitsui Banking Corporation.

As a result, Supermarket Income Reit - a specialist in grocery properties - -has reduced its loan-to-value ratio to 34%, with the weighted average term of debt now in excess of four years. The LTV was 40% as at December 2022.

Ben Green, director of Atrato Capital, said: "We are very pleased to be working with new lender SMBC in the refinancing, while benefiting from the continuing support of our existing relationship banks.

"We have also been able to extend hedging to further protect the company’s balance sheet at no additional cost.

"The company continues to be able to access debt financing at attractive margins. However, given the current macroeconomic environment the board considers it prudent to maintain a lower LTV."

Atrato is the investment adviser to Supermarket Income Reit.

Shares in the London-listed firm were largely flat as at 0900 BST, at 77.3p.