Supermarket Income REIT (LSE: SUPR)

Currency in GBP

Last close As at 09/06/2023


0.60 (0.73%)

Market capitalisation


Supermarket Income REIT (SUPR), listed on the premium 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.

Across all sectors, UK commercial property values are negatively repricing to increased risk-free yields. Supermarket property is not immune but visible income, from long-leases (for SUPR rents are mostly indexed), a strong occupier covenant and the non-cyclical nature of grocery retailing should mitigate the impacts.

Supermarket Income REIT_resized


Real Estate

Equity Analyst

Martyn King

Martyn King

Director, Financials

Key Management

  • Chris McMahon

    Investor relations

  • Haffiz Kala

    Finance director

  • Rob Abraham

    Managing director

  • Steven Noble

    Chief investment officer

Balance Sheet

Forecast net debt (£m)


Forecast gearing ratio (%)


Share Price Performance

Price Performance
% 1M 3M 12M
Actual (5.4) (6.3) (37.4)
Relative (3.3) (2.3) (36.8)
52 week high/low 131.0p/77.6p


End-H123 annualised passing rent increased 36% to £95.5m, reflecting acquisitions and indexed rent uplifts. With acquisitions set to contribute fully in H2 and all debt fixed/hedged, we expect adjusted EPS to accelerate (H1: 2.9p) to fully cover the expected FY23 DPS of 6.0p. With the market adjusting to higher capital costs, the portfolio value reduced by c 13% on a like-for-like basis, as the topped up net initial yield increased from 4.6% to 5.5%. EPRA NTA per share was 92p (end-FY22: 115p). Since end-H123, the sale of SUPR’s highly successful JV interest has completed, generating total gross proceeds of £431m by the end of July. The first tranche (£279m) has been partly used to repay debt and fund the £38m acquisition of an omnichannel store at a net initial yield of 6.0%. With pro-forma LTV set to fall to less than 30% and the company is considering the best use of its capital flexibility, including further accretive acquisitions and share repurchases, in addition to debt reduction.

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2021A 47.9 38.7 36.8 5.6 14.7 12.6
2022A 72.1 58.2 57.4 5.9 13.9 12.7
2023E 96.9 82.6 74.0 6.0 13.7 11.8
2024E 106.1 92.5 75.8 6.1 13.5 11.4



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