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Supermarket Income REIT (LSE: SUPR)

Last close As at 15/04/2024

GBP0.72

▲ −1.90 (−2.56%)

Market capitalisation

GBP925m

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.

Latest Insights

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Real Estate | Outlook

Supermarket Income REIT — Progressive dividend policy remains in place

Real Estate | Update

Supermarket Income REIT — Maintaining returns, with accretive opportunities

Investment Companies | Update

Supermarket Income REIT — Reducing NAV but focusing on income

Real Estate | Update

Supermarket Income REIT — SUPR takes majority interest in indirect portfolio
Supermarket Income REIT_resized
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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 (4.4) (9.5) (16.0)
Relative (7.2) (13.3) (17.8)
52 week high/low 89.8p/70.3p

Financials

During H124, rent reviews and recycling of capital into higher yielding assets and tight cost control offset the income foregone following the sale of SUPR’s highly successful investment in the Sainsbury’s Reversion joint venture. H124 DPS of 3.03p was 97% covered by adjusted earnings and the company remains confident in meeting its full year DPS target of 6.06p (+1%) on a fully covered basis. Although the UK grocery sector is generating strong sales growth, supermarket property yields continue to widen in line with the broader property market. June’s increase in portfolio net initial yield to 5.8% from 5.6% was only partially offset by rental growth and like-for-like valuations were 3.2% lower. NAV per share was 88p (FY23: 93p). Positively, SUPR’s strong balance sheet leaves it well-placed to take advantage of the emerging accretive acquisition opportunities.

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 12.3 11.3
2023A 93.3 79.8 57.2 4.6 15.8 10.7
2024E 103.9 92.6 75.9 6.1 11.9 8.6
2025E 107.5 96.0 77.1 6.2 11.7 9.7

Research

Update

Real Estate

Supermarket Income REIT — Maintaining returns, with accretive opportunities
Supermarket Income REIT_resized

Update

Investment Companies

Supermarket Income REIT — Reducing NAV but focusing on income

Real Estate

Outlook

Supermarket Income REIT — Progressive dividend policy remains in place
View All

Thematics

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