Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust providing secure, inflation-linked, long income from grocery property, has today declared an interim dividend in respect of the period from 1 April 2024 to 30 June 2024 of 1.515 pence per ordinary share (the “Fourth Quarterly Dividend”).
The Fourth Quarterly Dividend will be paid on or around 16 August 2024 as a Property Income Distribution (“PID”) in respect of the Company’s tax-exempt property rental business to shareholders on the register as of 12 July 2024. The ex-dividend date will be 11 July 2024.
The Company has now declared four quarterly dividends totalling 6.06 pence per ordinary share in respect of the financial year ended 30 June 2024, in line with the Company’s full-year dividend target.
As the Company’s ordinary shares are currently trading at a discount to the published EPRA Net Tangible Assets per share, the board of directors of the Company (the “Board”) believes that it is not in the best interests of shareholders to offer the scrip dividend alternative, under which shareholders would have been able to elect to receive new ordinary shares in lieu of the cash dividend (the “Scrip Dividend Alternative”). The Board has therefore exercised its discretion to suspend the Scrip Dividend Alternative in respect of the Fourth Quarterly Dividend.
All shareholders who are entitled to receive the Fourth Quarterly Dividend will therefore receive it in cash.
The Board will keep under consideration the offer of a scrip dividend alternative in respect of future quarterly dividends
‘I’m a money expert – these five investments can outstrip property returns in the UK
By Jasmine Birtles
It is no secret that the cost of getting on the property ladder in the UK is currently at an exorbitant level. Recent research has shown that a third of millennials may never be able to own their own home and many others will continue to rent into their forties.
For decades, buying property has been viewed as the best way to build wealth and see a return on your investment. However, I don’t think that is the case.
Fluctuating house prices, high mortgage rates, and increasing upkeep costs mean that the return on property isn’t what it used to be. This is particularly the case for buy-to-let property investments which returned an average rental yield of five percent to eight percent last year.
If you’re currently struggling to afford to invest in property or looking for a more lucrative investment opportunity than buy-to-let, you’re in luck! Here, I will share five high-yield investments that could provide a higher return than property in the UK. It turns out you don’t need to be a homeowner to grow your wealth.
ETFs ETF stands for ‘Exchange Traded Fund’. In simple terms, ETFs are investment funds that are traded on stock exchanges, just like individual stocks.
ETFs are designed to track the performance of a specific index, such as the S&P 500 or Nasdaq. This means that when you invest in an ETF, you’re essentially buying a diversified group of assets that replicate the performance of the index it is tracking.
Annual returns on ETF investments vary from three percent up to 25 percent. Usually, ETFs on the lower end of this range come with lower risk.
By conducting careful research and identifying profitable opportunities, it is very possible to receive a higher return over one year than you would on a rental property.
Cryptocurrency Cryptocurrency investing can be very volatile (of no interest for this blog)
REITs REITs are the best gateway to property investing for people who can’t quite afford to put a down payment on a house!
REIT stands for ‘Real Estate Investment Trust. A REIT is a type of investment that allows everyday investors to invest in the real estate market without having to actually buy and manage properties themselves.
In simple terms, a REIT is similar to a mutual fund, but instead of investing in stocks and bonds, it invests in real estate assets.
One key feature of a REIT is that it must distribute at least 90 percent of its taxable income to its shareholders in the form of dividends. This means that investors in a REIT can earn a consistent income stream from rental payments and property sales.
But, can REITs outperform properties? It turns out they can. Data from Savills showed that, between 2010 and 2020, the average total return for a REIT in the UK was 7.2 percent. Whereas, the average total return for a residential property over the same time frame was 6.4 percent.
Some platforms allow you to invest in REITs from as little as £50, which makes them much more accessible than the property ladder!
Value stocks For the last 50 years, the stock market has outperformed the property market. Therefore, stocks might be worth considering.
In particular, value stocks have the ability to provide generous returns to investors who manage to identify undervalued opportunities. Here’s how to find undervalued stocks.
A ‘value stock’ is a fancy term for a stock that is trading below its intrinsic value. Because of their undervalued price, these stocks have a lot of room for growth.
Value investing is a strategy that is most famously used by Warren Buffet – so if you get it right, it can be very profitable.
Start-ups Investing in new businesses can be very rewarding, however, investing in start-ups can be risky! There is no guarantee that the business you invest in will succeed. (of no interest for this blog)
If you’re looking for alternative ways to build wealth that aren’t property, you should always keep diversification in mind (i.e. spread your bets!).
A diverse portfolio is a portfolio that consists of multiple different investments, rather than putting all of your eggs in one basket!
The ability to diversify is one of the main advantages of putting your money into an asset that isn’t property. Unlike hefty house deposits, many online brokerages offer low minimum deposits that allow you to spread your funds across multiple different assets.
Diversifying will reduce the impact of losses and increase your chances of investing in an asset that will generate returns.
I’ve bought for the portfolio 4790 shares in WHR for 4k, they go xd tomorrow for 1.6p and then I’ll either add to the position or flip it, if it posts a profit.
Cash for re-investment, earmarked for RGL £1,898.00
Here’s my prediction for the best FTSE 100 stocks for H2
Jon Smith details keys events that he’s watching out for in the coming six months and explains which FTSE 100 stocks he expects to do well.
When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services.
We’re in the second half of the year, with plenty on the horizon that could make for volatility in the stock market. It kicks off tomorrow (4 July) with the UK general election. In coming months, we’re due several major central bank meetings, inflation and other data releases that could impact FTSE 100 stocks. With that in mind, here’s how I think things could pan out.
Events ahead
If we start with the general election, I actually don’t think we see a huge market reaction if the Labour party win a majority. This is because this eventuality is widely expected by people. Investors don’t like unpredictability, but if things happen as expected, there’s not too much to be concerned about in the short term.
Looking ahead, I think that the main driver for the FTSE 100 will be inflation and the reaction of interest rates. The latest data showed that inflation is now back at 2%, the target level of the Bank of England. This should likely support several cuts in interest rates between now and the end of the year.
If my prediction is correct, I think that the best Footsie stocks for me to think about buying will be ones that stand to benefit from lower inflation and lower interest rates. At the same time, I could look to add shares that could do well from increased Government spending in key areas such as property and healthcare.
Next up
One example of a stock on my watchlist for H2 is Next (LSE:NXT). The fashion and homeware retailer has been a face on the high street for over four decades. Over the past year, the stock has outperformed, rallying by 32%.
I think the stock could continue to do well as inflation continues to moderate. Consumers should feel more confident with their finances without costs spiralling higher. This could see them spend more on clothing and home furnishings. I think Next is well positioned to benefit from this, in that it isn’t high-end luxury but more middle market.
Further, Next should benefit from lower debt costs. In the annual report, it mentioned how net debt reduced by £97m to £700m for 2023. This is great, but another benefit will be felt through lower financing costs going forward. If interest rates do fall, it’ll make issuing new debt less expensive. This ultimately should help to boost cash flow and profitability.
One risk is the problem that Next has with external factors. For example, in the latest quarterly report, it spoke of how demand might be lower due to wet spring weather. To be at the mercy of the natural elements isn’t something investors will be happy about!
Making a call
Ultimately, my predictions for the coming six months are based on how I see the world right now. People might (and do) disagree with me. Yet that’s the beauty of the stock market. It’s made up of buyers and sellers, with those that make the correct calls rewarded in the long run.
NextEnergy Solar burnishes its credentials as a top income stock
NextEnergy Solar Fund’s ESG strategy and deeper dive into the financials – ICYMI
NextEnergy Solar and Bluefield offer ‘attractive’ implied returns after de-rating, says Barclays
NextEnergy Solar Fund’s ESG Vision: Insights from non-executive director Josephine Bush
About the company
About NextEnergy Solar Fund
NESF is a specialist solar power renewable energy investment company listed on the premium segment of the London Stock Exchange that invests in utility-scale solar power plants and energy storage. The Company may invest up to 30% of its gross asset value in non-UK OECD countries, 15% in solar-focused private equity structures, and 10% in energy storage.
NESF currently has a diversified portfolio comprising of the following:
99 operating solar assets across the UK and Italy (primarily on agricultural, industrial, and commercial sites)
A $50m commitment into NextPower III ESG (a private solar infrastructure fund providing exposure to operating and in-development international solar assets)
A 50MW co-investment into a Spanish solar project alongside NextPower III ESG, currently in construction
A 50MW standalone battery storage project in Fife, Scotland, currently in construction (part of a 250MW joint venture with Eelpower)
Two subsidy free UK solar ready-to-build projects (Hatherden 50MW & Whitecross 35MW)
The NESF portfolio has a combined installed power capacity of 865MW (excluding NextPower III MW on an equivalent look-through basis).
As at 31 December 2021, the Company had a gross asset value of £1,094 million, being the aggregate of the net asset value of the ordinary shares, the fair value of the preference shares and the amount of NESF Group debt outstanding, and a net asset value of £615million.
NESF’s investment objective is to provide ordinary shareholders with attractive risk-adjusted returns, principally in the form of regular dividends, by investing in a diversified portfolio of solar energy and energy storage infrastructure assets. The majority of NESF’s long-term cash flows are inflation-linked via UK government subsidies.
For further information on NESF please visit nextenergysolarfund.com
Commitment to ESG
NESF is committed to ESG principles and responsible investment which make a meaningful contribution to reducing CO2 emissions through the generation of clean solar power. NESF will only select investments that meet the requirements of NEC Group’s Sustainable Investment Policy. Based on this policy, NESF benefits from NEC’s rigorous ESG due diligence on each investment. NESF is committed to reporting on its ESG performance in accordance with the UN Sustainable Development Goals framework and the EU Sustainable Finance Disclosure Regulation.
NESF has been awarded the London Stock Exchange’s Green Economy Mark and has been designated a Guernsey Green Fund by the Guernsey Financial Services Commission.
NESF’s sustainability-related disclosures in the financial services sector in accordance with Regulation (EU) 2019/2088 can be accessed on the ESG section of both the NESF website (nextenergysolarfund.com/esg/) & NEC Group website (nextenergycapital.com/sustainability/transparency-and-reporting/).
About NextEnergy Group
NESF is managed by NextEnergy Capital, part of the NextEnergy Group. NextEnergy Group was founded in 2007 to become a leading market participant in the international solar sector. Since its inception, it has been active in the development, construction and ownership of solar assets across jurisdictions. NextEnergy Group operates via its three business units: NextEnergy Capital (Investment Management), WiseEnergy (Operating Asset Management) and Starlight (Asset Development).
NextEnergy Capital
NextEnergy Capital comprises the Group’s investment management activities. To date, NEC has invested in over 325 individual solar plants for a capacity in excess of 2.3GW across it institutional funds. www.nextenergycapital.com
NextEnergy Solar Fund (“NESF”) is a solar infrastructure investment company focused on the UK and other OECD countries, that is listed on the premium segment of the London Stock Exchange. It currently owns 865MW spread among 99 individual assets in the UK and Italy, comprising a gross asset value of £1,094m. NESF is one of the largest listed solar energy investment companies in the world.
NextPower II (“NPII”) a private fund made up of 105 individual operating solar power plants and an installed capacity of 149MW, focused on consolidating the substantial, highly fragmented Italian solar market. NPII was successfully divested in January 2022, a 2016 vintage vehicle that generated net IRRs to its investors in excess of 25%, versus a gross target of 10-12%.
NextPower III ESG (“NPIII”) is a private fund exclusively focused on the international solar infrastructure sector, principally targeting projects in carefully selected OECD countries, including the US, Portugal, Spain, Chile, Poland and Italy. NPIII ESG is a fund that provides a positive social and environmental impact to the countries it has and will invest into. NPIII has completed its fundraise with a total of $896m, including a SMA raised. The target of the fund was $750m.
NextPower UK ESG (“NPUK ESG”) is a private unlevered fund investing in greenfield subsidy-free solar projects, with PPA’s, in the UK. NPUK ESG was launched in December 2021. The UK Infrastructure Bank is providing financing to the initial seed assets of the fund, and plans to invest up to £250m, half of the fund’s total target fund size, on a match-funding basis.
WiseEnergy
WiseEnergy® is NextEnergy Capital Group’s operating asset manager. WiseEnergy is a leading specialist operating asset manager in the solar sector. Since its founding, WiseEnergy has provided solar asset management, monitoring and technical due diligence services to over 1,300 utility-scale solar power plants with an installed capacity in excess of 2.2GW. WiseEnergy clients comprise leading banks and equity financiers in the energy and infrastructure sector.
www.wise-energy.com
Starlight
Starlight is NextEnergy Group’s development company that is active in the development phase of solar projects. It has developed over 100 utility-scale projects internationally and continues to progress a large pipeline of c.2.5GW of both green and brownfield project developments across global geographies.
How it is doing
19 Jun 2024
NextEnergy Solar Fund Ltd (LSE:NESF) burnished its credentials as one ofFTSE 350’s top income stocks with an 11% increase in total dividends to 8.35p, giving a yield of 11%.
With the payout covered 1.3 times by earnings, the group has increased its target for the current year to 8.43p. It has also signed off a £20 million share buyback programme.
The guidance was given alongside full-year results, which revealed a modest decline in the net asset value (NAV) to 104.7p. NESF generated income of £80 million in the 12 months ended March 31, up £1 million on the year earlier.
Gearing was up marginally at 29.3% with the weighted average cost of capital 0.7 percentage points higher at 6.4%.
The Telegraph thinks CVC Income and Growth is a Buy for income seekers, while This is Money explains why RTW Biotech Opportunities could go off like a rocket.
By Frank Buhagiar•02 Jul, 2024•
Questor: This Hargreaves Lansdown bidder’s loan fund is a ‘buy’ for income seekers
CVC Capital Partners, which floated on the stock market in April 2024, is part of a consortium that recently bid 1,140p a share for the retail investment platform Hargreaves Lansdown. The Telegraph’s Questor tips CVC Income and Growth (CVCG) as a buy for income seekers. For over the past five years, CVCG’s sterling shares, which currently yield 7.5%, have generated a total return of +43.4% compared to the average +19.7% generated by six of the fund’s peers – and that average includes CVCG. Similar story over ten years with the fund returning +84.9%.
The majority of this sector-leading return has come from the fund’s quarterly dividends which are covered by income and gains made from the loans it provides to credit-impaired companies. Now, ‘Credit-impaired companies’ may set a few alarm bells ringing but The Telegraph tipster points out that, “The portfolio is evenly split between ‘performing credit’ where companies are meeting their loan repayments as they repair their ratings, and ‘credit opportunities’ where fund managers Pieter Staelens and Mitchell Glynn see the ability to buy undervalued debt ahead of a refinancing, rating upgrade or acquisition.” As the fund managers explain, a poor credit rating doesn’t necessarily make a business bad.
The key is picking the right business and the right kind of debt. Almost three-quarters of the 128 loans the fund holds are ranked senior. So, CVCG is first in line for repayment in the event the loanee goes under. The loans are also secured against assets, thereby protecting the fund further, while borrowers pay a margin over base rate on their loans adding another layer of protection. All of which leads Questor to conclude “the shares continue to offer good value for income investors.”
RTW BIOTECH OPPORTUNITIES: Innovation ‘super-cycle’ could see biotech fund go off like a Rocket
So says This is Money after speaking to RTW Biotech Opportunities’ Roderick Wong. For in the 15 years since he established fund manager RTW, which today oversees £5.5 billion of investments, never has “Wong been more excited about the investment case for life sciences and in particular biotechnology than now.” Two reasons cited for Wong’s bullishness: the sector’s emergence from a three-year bear market; and signs that biotech is in the ‘early stages of an innovation super-cycle’ thanks to new technologies. While AI may be stealing the limelight when it comes to technology at present, Wong believes investors should be taking a closer look at biotech too.
And for those wanting to invest in the sector, the £522m RTW Biotech Opportunities Trust he manages offers a diverse portfolio of companies at all stages of the corporate life cycle from start-ups to established listed businesses. For Wong likes to hold companies for their full life cycles. In the article, Wong says “We like to be in from the start when a company is private. We do our due diligence and then work closely with them, maybe taking a seat on the board, and gaining confidence as we go along. Yet unlike venture capitalists, we don’t exit when the company goes public. Often, we will stick with our investment and reap bigger rewards as a result.”
And the approach has generated sector-leading results. RTW Biotech Opportunities’ shares have generated a +45% return since the fund’s October 2019 launch. The average return from the biotech and healthcare sector? +22%. And that outperformance was achieved despite biotech having to endure a three-year bear market. Question is, what would the fund’s performance look like during an “innovation super-cycle”?
