Shore Capital Markets anticipates a mixed bag of results when Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) announces its full-year earnings this Wednesday.
Earnings per share are expected to come in at 6p, a slight increase from 5.9p in 2022. This should result in a corresponding 6p dividend as forecast last September.
Analysts expect a 19% like-for-like fall in portfolio value to £1.56bn, giving rise to net tangible assets (NTA) of 89p per share.
On the upside, Supermarket REIT successfully delevered its balance sheet this year, while realising gains, through the sale of its stake in the 26-store Sainsbury’s Reversion Portfolio.
Refinancing initiatives have also helped to improve the REIT’s debt obligations, resulting in a combined interest rate of just 3.1%.
“The rental outlook for supermarkets looks mostly robust given a majority of the Supermarket REIT stores remain on reasonably long WAULTs (weighted average unexpired lease terms) with rents subject to annual indexed reviews,” said ShoreCap.
Supermarket REIT’s current share price to net tangible assets suggests it “still looks to be at the top-end of the sector and will be vulnerable to any unexpected surprises in the trading outlook”.
As such, analysts maintain a 'sell' rating with a 76p price target, suggesting no movement from the publication price.