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Supermarket Income REIT gets tailwind from buoyant grocery sector

Last updated: 14:23 22 Mar 2024 GMT, First published: 13:59 02 Mar 2021 GMT

Snapshot

  • Supermarket Income REIT purchases new Tesco site
  • Supermarket Income REIT comfortable on busy grocery store sector
  • Supermarket REIT ‘walking the talk’ with Tesco acquisition, says Shore Cap
  • Atrato Capital highlights strong performance and growth opportunities for Supermarket Income REIT
tesco

About the company

Supermarket Income REIT PLC is a real estate investment trust dedicated to investing in grocery properties which are an essential part of the UK's feed the nation infrastructure.

The company focuses on grocery stores which are omnichannel, fulfilling online and in-person sales.

Supermarket Income REIT provides investors with attractive, long-dated, secure, inflation-linked, growing income with the potential for capital appreciation over the longer term.

How it is doing

22 Mar 2024

Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) revealed it acquired a Tesco omnichannel supermarket in Stoke-on-Trent, Staffordshire, for £34.7 million.

The 54,450-square-foot site, which reflects a net initial yield of 7.5%, supports both in-person and online click-and-collect and also has a petrol station situated on the lot.

Supermarket Income REIT will take over an unexpired lease term of 11 years, with the agreement subject to annual RPI-linked rent reviews – albeit subject to a 4% cap and a 0% minimum.

Funding for this acquisition was sourced from Supermarket Income REIT's existing revolving credit facility.

14 Mar 2024

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.

13 Mar 2024

Supermarket Income REIT’s balance sheet is in stronger shape following the sale in 2023 of the company’s interest in the 26-store Sainsbury’s Reversion Portfolio (SRP), notes Shore Capital

“SUPR used that sale to de-lever its balance sheet and conduct a debt refinancing exercise that involved the cancellation of two shorter-dated debt facilities, the reduction and extension of an existing debt facility, and the completion of a new unsecured debt facility with a new lender.”

Insight: Supermarket Income REIT comfortable on busy grocery store sector

06 Apr 2020

Negotiating rents has been one of the key issues during the coronavirus crisis: most landlords have been accepting rent deferrals or offering discounts altogether to help their tenants.

But Supermarket Income REIT PLC (LON:SUPR) has stood out after receiving all of its rents for March even before the expected deadline.

What the brokers say

22 Mar 2024

Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) is “walking the talk” with its latest Tesco acquisition, reckon analysts at Shore Capital Markets.

The London-listed investment trust bought the 54,000-square-foot omni-channel store for around £35 million, hot on the heels of its recent commitment to deploy existing debt capital into value opportunities with shorter lease terms.

Shore Cap said the deal “should be immediately earnings accretive and also enhance NTA once the opportunity to regear the existing lease term arises”.

What management says

13 Mar 2024

Atrato Capital managing director, Robert Abraham and finance director Michael Perkins visit the Proactive studio to discuss the interim results of Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF), emphasising the sector's strong performance.

Abraham said key tenants, Tesco and Sainsbury's, have reported robust sales growth and market share, particularly in omni-channel stores, which have seen the most significant sales increases. The investment market presents an attractive pipeline of accretive assets for SUPR, with current leverage allowing capacity for targeting these opportunities, he added.

Perkins noted that SUPR reported a 15% increase in net rental income for the six months ending December 2023, driven by acquisitions and rent review income, maintaining stable adjusted earnings of 2.9 pence. Despite operating at lower leverage, the company is on track to meet its full-year dividend target of 6.06 pence.

Atrato Capital highlights strong performance and growth opportunities for...

Atrato Capital managing director, Robert Abraham and finance director Michael Perkins visit the Proactive studio to discuss the interim results of Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF), emphasising the sector's strong performance. Abraham said key tenants, Tesco and Sainsbury's,...

2 weeks, 1 day ago