Analysts at Liberum put a positive spin on Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF)’s valuation update, which today showed a 13.3% decline on a like-for-like basis over the six-month period for its portfolio of UK-based grocery store properties.
According to the broker, Supermarket REIT’s portfolio outperformed the MSCI IPD benchmark by six percentage points in the six months to December 31, 2022.
The MSCI IPD (Investment Property Databank) benchmark, which is a widely used performance index for commercial real estate investments, tracked a 19.4% decline in supermarket assets over the same period.
Supermarket Income REIT also beat Liberum’s own valuation forecast of -17.6%.
A “sharp decline” in net tangible asset (NTA) per share of -14.7% for the first half of the 2023 financial year is to be expected once results are published on March 30.
Currently changing hands at 91.8p, Supermarket REIT’s shares are trading at over a 5% discount to NAV.