Supermarket Income REIT


£353.1m market cap

104.5p last close

Supermarket Income REIT, listed on the special funds segment of the London Stock Exchange, 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, with a 7–10% pa total shareholder return target over the medium term.

Investment summary

Following FY19 results that showed strong growth driven by the continued steady build-up of the portfolio, contracted RPI-linked rental growth, and improving efficiency, Supermarket Income REIT (SUPR) intends to raise c £50m in a share placing and offer with the proceeds directed at further portfolio acquisitions. FY19 shareholder total return was 8.0%, taking the total to 16.1% in the two years since IPO. The FY20 DPS target has been increased in line with inflation to 5.80p, implying a yield of 5.6%.

Share price graph
Balance sheet
Forecast net debt (£m) 0
Forecast gearing ratio (%) 0
Price performance
Actual 0.0 0.0 3.5
Relative* 0.7 3.3 (1.1)
52-week high/low 107.5p/95.5p
*% relative to local index
Key management
Ben Green Investment Adviser
Steve Windsor Investment Adviser