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Supermarket Income REIT maintains dividend plans as 100% of rents roll-in

After upward rent reviews at one of its Tesco superstore and a Morrisons supermarket since the start of the year, the total rent from the portfolio was increased to £28.4mln from £28.03mln

Supermarket Income REIT plc -

Supermarket Income REIT plc (LON:SUPR) has joined the precious few companies maintaining their dividends through the coronavirus crisis as it also reported growing rental income.  

The investment company, which owns a portfolio of Tesco, Sainsbury’s and Morrisons supermarket stores, said it had received 100% of its expected rent payments for the March quarter, in stark contrast to some other more prominent property companies in recent days.

READ: Coronavirus driving structural shift for grocery sector

What’s more, after upward rent reviews at one of its Tesco superstore and a Morrisons supermarket since the start of the year, the total rent from the portfolio was increased to £28.4mln from £28.03mln, it added in a statement.

Taking heart from the solidity of its portfolio, the REIT confirmed that it would not change the timetable for its intended third-quarter interim dividend, which is due to be announced on April 8.

After the payment of the third-quarter dividend, the company expects to have cash balances of £32mln, with a net loan-to-value ratio standing at 37.5%, well within the 60% required in its banking covenants, and interest cover will be 6.8 versus a covenanted 2.0.

“While it is too early to fully understand the long-term implications of the ongoing health crisis, the company has a robust balance sheet and is in a strong position to continue operating as usual despite the wider uncertainty,” it said in the statement.

Quick facts: Supermarket Income REIT PLC

Price: 108.28 GBX

LSE:SUPR
Market: LSE
Market Cap: £512.84 m
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