Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) benefitted from a resilient grocery sector to post some bumper results this financial year.
Annualised rental income increased 30% to £100.6 million, with operating profit increasing 37% year on year to £79.8 million, reflecting 11% growth in the sector during the reporting period.
This translated to £72.4 million in adjusted earnings, resulting in earnings per share of 6p, as previously expected.
Full-year dividends came to 6p as expected, with full-year 2024 dividends expected to come to 6.06p.
Supermarket REIT’s biggest highlight for the year was undoubtedly the sale of its stake in the Sainsbury’s Reversion Portfolio, which generated a 30% internal rate of return following the £430.9 million sale.
Post period, the REIT has successfully reduced its loan-to-value ratio to 34% with a weighted average finance cost of 3.1%.
Net asset values did take a hit due to headwinds in the wider real estate sector, with NAV per share falling from 116p to 98p.
"The UK grocery sector has again demonstrated resilience despite the challenging macroeconomic environment we have experienced during the year,” said Nick Hewson, chair of Supermarket Income REIT.
Looking forward, Hewson commented: “We remain focused on our investment strategy of acquiring and managing a high-quality portfolio of omnichannel supermarkets. These give us exposure to the fastest growing segment of the UK grocery market which itself is experiencing strong growth…
“The quality of our unique omnichannel supermarket portfolio and the increasing affordability of grocery rents, together with our robust balance sheet means we are well positioned to continue delivering long-term value for our shareholders."