Supermarket Income REIT

Overview
Price performance
Financials
Research
Thematics

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.

The broad commercial property market is showing increasing signs of stabilisation. The company’s supermarket assets have the benefit of visible income from long, mostly indexed, leases, a strong occupier covenant and the non-cyclical nature of grocery retailing. Investment volumes in supermarket property have been significantly more resilient than for the wider market.

Latest Insights

Real Estate |
Update

10.07.24

Supermarket Income REIT — The next stage of growth

Real Estate |
Outlook

06.11.23

Supermarket Income REIT — Progressive dividend policy remains in place

Real Estate |
Update

22.05.23

Supermarket Income REIT — Maintaining returns, with accretive opportunities

Investment Companies |
Update

28.02.23

Supermarket Income REIT — Reducing NAV but focusing on income

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Sector

Real Estate

Equity Analyst

Martyn King

Director, Financials

Key Management

Chris McMahon

Investor relations
Michael Perkins

Finance director
Rob Abraham

Managing director
Steven Noble

Chief investment officer

Balance Sheet

Forecast net debt (£m)

658.4

Forecast gearing ratio (%)

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	0.9	6.5	(0.5)
Relative	0.7	5.8	(9.2)
52 week high/low	88.5p/70.3p

Financials

Despite strong growth in UK grocery sector sales, supermarket property yields continued to widen in H124 and, anticipating a turn in the interest cycle, SUPR had identified attractive opportunities to resume accretive portfolio growth. It has since acquired one store in the UK and has made its first investment in France, acquiring a portfolio of 17 omnichannel stores, operated by Carrefour, for €75m. Earnings accretion has been locked in with seven-year, fixed rate, unsecured euro-denominated borrowing. The acquisition adds another very strong tenant covenant and opens up significant further opportunities for growth in the large European market, with a continued focus on structural growth in online grocery shopping.