Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) has been given a positive evaluation from Jefferies following the fund's half-year 2024 earnings report.
Jefferies maintained a ‘buy’ recommendation on the stock, with a price target of 90p.
Commenting on the 6.06p dividend per share (DPS) target laid out by Supermarket REIT, analysts said: “We forecast the dividend to be fully covered by the financial year 2024 due to continued rental uplifts for the group as mentioned by management with DPS increasing year on year by a moderate 1%.
“Additionally, we forecast a slowdown in both acquisitions and disposals for FY 24-26 with acquisitions being made on an opportunistic basis.”
Supermarket REIT’s balance sheet remains “relatively robust”, said Jefferies, “with LTV (loan to value) of 33% as of 31 Dec 2023”.
Its shares were swapping for 74.5p in Thursday afternoon trade.