LONDON - Supermarket Income REIT plc (LSE: LON:SUPR), a UK-based real estate investment trust, has announced plans for its upcoming Annual General Meeting (AGM) set for Monday, December 16, 2024. The meeting will include shareholder votes on proposed amendments to the company's investment policy and new service agreements with the Atrato Group.
The proposed policy changes aim to expand the company's investment reach within Europe while maintaining a UK-centric strategy, with at least 60% of rental income originating from UK supermarket operators. The adjustments would enable investment in both UK and European supermarket operators, broadening the potential tenant base and diversifying the asset portfolio. The company has already received written approval from the Financial Conduct Authority for these amendments.
Additionally, the REIT is seeking approval to enter into new service agreements which are anticipated to result in significant cost savings. The new investment advisory agreement would alter the management fee calculation from net asset value (NAV) to market capitalisation. Based on the share price as of November 15, 2024, this change is expected to save the company approximately £1.9 million annually. Further annual savings of around £0.3 million are predicted from transitioning AIFM, company secretarial, and payment services to the Atrato Group.
The company believes these changes will materially benefit earnings per share and dividend cover. The proposed new service agreements are considered fair and reasonable by the company's directors and have been advised as such by Stifel Nicolaus Europe Limited, the company's sponsor.
The AGM will be held at the offices of Macfarlanes LLP in London, and shareholders are encouraged to vote by proxy ahead of the meeting. The Notice of AGM, along with additional documentation, is available on the company's website and the National Storage Mechanism.
The information in this article is based on a press release statement from Supermarket Income REIT plc.
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