Supermarket Income REIT (LSE: SUPR)

Last close As at 18/03/2024

GBP0.75

−0.90 (−1.18%)

Market capitalisation

GBP948m

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 main sectors the market continues to adjust to an increased cost of capital. SUPR’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.

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Supermarket Income REIT_resized

Sector

Real Estate

Equity Analyst

Martyn King

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)

544.3

Forecast gearing ratio (%)

45

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 0.5 (4.8) (11.2)
Relative (2.8) (7.7) (13.9)
52 week high/low 89.8p/70.3p

Financials

Results for the six months to 31 December 2023 (H124) will be released during March. Fitch Ratings recently affirmed SUPR’s investment grade credit rating, highlighting the company’s long-term defensive income streams, its high quality omnichannel focused portfolio, and the financial profile improvements that followed the sale of SUPR’s highly successful investment in the Sainsbury’s Reversion JV. The FY23 results reported in September 2023 showed strong earnings growth driven by acquisitions and rent reviews. FY23 DPS of 6.0p was 0.97x covered by EPRA earnings and the company expressed confidence that the targeted FY24 DPS of 6.06p (+1%) will be fully covered as adjusted earnings benefit from rental growth, cost efficiency and fixed debt costs. We expect the more stable tone in property values apparent in H223 to have continued.

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2022A 69.7 58.2 57.4 5.9 12.9 11.8
2023A 93.3 79.8 57.2 4.6 16.5 11.2
2024E 103.9 92.6 75.9 6.1 12.5 8.9
2025E 107.5 96.0 77.1 6.2 12.3 10.1

Thematics

thematic

Real Estate

South African industrial property fundamentals are strong

thematic

Real Estate

South African retail property funds remain resilient

thematic

Consumer

IPO apocalypse

thematic

TMT

ESG, moving beyond the box tick

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