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Supermarket Income REIT

LN: SUPR

Market Cap£1221.9m

Last Close 124p

Supermarket Income REIT, listed on the special funds segment of the LSE, invests in supermarket property, let to leading UK supermarket operators, on long, RPI-linked leases. The investment objective is to provide an attractive level of income, with the potential for capital growth.

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Investment summary

The decision by Sainsbury’s to exercise its purchase option over additional stores in the ‘indirect portfolio’ will trigger additional capital growth for Supermarket Income REIT (SUPR) within its JV, further underlining the attractiveness of this investment. Meanwhile, SUPR continues to make good progress with capital deployment, supported by a continuing strong acquisition pipeline and recently enhanced debt capital resources.

Y/E Jun
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2020A 25.5 21.2 16.8 5.0 24.8 15.4
2021A 46.2 38.7 36.8 5.6 22.1 18.9
2022E 68.6 57.0 57.5 6.2 20.0 21.0
2023E 79.8 67.3 64.8 6.6 18.8 18.6
Industry outlook

Supermarket property has a long record of positive total returns underpinned by stable income returns in part due to long-leases, a strong occupier covenant, and the non-cyclical nature of grocery retailing. Supermarkets have been net beneficiary of the pandemic which has boosted sales, particularly online and fulfilled by omnichannel stores.

Last updated on 12/01/2022
Content on Supermarket Income REIT
Supermarket Income REIT – Unlocking value in the JV
Real Estate | Update | 11 January 2022
architecture-building-business-264507
Supermarket Income REIT – Supermarket sweep
Real Estate | Update | 13 December 2021
architecture-building-business-264507
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Share price graph
Balance sheet
Forecast net cash (£m) 618.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 2.5 6.4 14.8
Relative* 0.2 2.1 3.9
52-week high/low 125.0p/106.5p
*% relative to local index
Key management
Ben Green Investment Adviser
Steve Windsor Investment Adviser