Supermarket Income REIT PLC (LSE:SUPR) is on track to deliver its targeted full-year dividend of 5.94p after reporting doubled half-year profits.
Annualised passing rent in the six months to the end of 2021 increased by 52% to £70.2mln from £46.1mln the year before following rent reviews and new acquisitions during the period.
Profit before tax jumped 109% to £68.9mln from £33.0mln the previous year.
Earnings per share (EPS) increased 34% to 7.9p from 5.9p in the second half of 2020 while EPS calculated as per the European Public Real Estate (EPRA) guidelines rose to 3.1p from 2.8p.
The interim dividend was increased to 3.0p from 2.9p, giving EPRA dividend cover of 1.13, up from 1.12 the year before.
EPRA net tangible assets surged 28% to £1,113mln from £872mln, equivalent to 113p per share, up from 108p. The value of the trust’s investment in the Sainsbury's Reversion Portfolio increased by £37.2 million to £167.5 million, following the exercise of purchase options by Sainsbury's.
The real estate investment trust’s (REIT) shares currently trade at 126.5p.
The trust’s loan to value percentage on its direct portfolio eased to 32.1% from 34.0% at the end of 2020.
“We have continued to diversify our portfolio by sourcing and acquiring high-quality omnichannel supermarket properties that represent the future model of grocery in the UK. We are delighted to have achieved the strategic milestones of becoming a premium segment listed company and receiving an investment-grade credit rating, demonstrating both the strength and maturity of our business. Since our IPO in July 2017, we have delivered a total shareholder return of 48% for our shareholders,” said Nick Hewson, the chairman of Supermarket Income.
“In this highly inflationary environment, our portfolio offers investors secure, long-term, inflation-protected income that is backed by one of the most compelling real estate asset classes in the UK investment market,” he added.