Supermarket Income REIT (LSE: SUPR)

Currency in GBP

Last close As at 26/01/2023

GBP0.99

0.80 (0.81%)

Market capitalisation

GBP1,220m

Supermarket Income REIT, 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.

Property values across the UK commercial property sector are negatively repricing to increased risk-free yields. However, 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.

Supermarket Income REIT_resized

Sector

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)

541.6

Forecast gearing ratio (%)

41

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (2.9) (7.0) (18.9)
Relative (6.6) (15.9) (20.8)
52 week high/low 133.0p/96.0p

Financials

Supermarket Income REIT (SUPR) has acquired an additional 25.5% beneficial interest in the Sainsbury’s Reversion Portfolio (SRP) from its joint venture (JV) partner. It now has a 51% interest with 49% held by Sainsbury’s. SUPR’s positioning in the winding up of the SRP structure is strengthened, its relationship with Sainsbury’s, operator of the stores, is deepened, and it expects to further enhance the return on its SRP investment. Separately, reflecting widespread expectations that yields will continue to widen across real estate sectors, our forecast net tangible assets (NTA) per share is reduced by c 10%.

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2021A 46.2 38.7 36.8 5.6 17.7 15.1
2022A 69.7 58.2 57.4 5.9 16.8 15.3
2023E 94.5 80.9 71.7 5.8 17.1 15.5
2024E 100.3 86.4 70.9 5.7 17.4 14.6

Thematics

Consumer

IPO apocalypse

TMT

ESG, moving beyond the box tick

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