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Supermarket Income REIT's NAV rises as grocery shopping surges during pandemic

Published: 08:23 02 Mar 2021 GMT

Supermarket Income REIT PLC -

Supermarket Income REIT PLC (LON:SUPR) said its focus on properties that have omnichannel potential has been validated by the surge in online grocery sales during the pandemic.

Nick Hewson, chairman, said: “The last 12 months have highlighted the critical role of grocery property in the UK's feed the nation infrastructure.

“Our supermarkets play a key role in supporting the response of the UK grocery sector to the pandemic and as a result we have experienced strong property investor interest in our market and consequently a tightening of yields.

The trust focuses on sites occupied by the UK’s big four major grocery chains and the value of its direct holdings rose by 5.5% in the six months to December 2020 with NAV per share improving to 104p from 101p.

The REIT bought 13 supermarket properties worth £314mln during the latest six months, with a further £177mln invested in the second half of the year so far.

Rental income reflected the growing size of the portfolio and rose 71% to £20.4mln during the first half compared to £11.9mln at 31 December 2019.

“We have a high degree of certainty of income through the Group's long, upward-only, inflation-linked rental uplifts, leased to tenants with undoubted covenants,” Supermarket Income said in a statement.

“Throughout the COVID-19 crisis this has been borne out as we collected 100% of rents with no defaults, deferrals, or rent reductions.”

The interim dividend rises by 1.7% to 2.93p and the company said it is on track to meet its target 2021 payment of 5.86p.

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