Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Net rental income increased 6% to GBP 113.2 million (FY24: GBP 107.2 million).
  • FY26 dividend target increased to a minimum of 6.18 pence per share.
  • Completed a GBP 403 million joint venture with Blue Owl Capital, realising about GBP 200 million net proceeds.

Supermarket Income REIT plc (LSE:SUPR) (JSE:SRI), a FTSE 250 company, invests in grocery properties across the UK and Europe. The portfolio was valued at GBP 1.8 billion as of 31 December 2024 and is let to major supermarket operators. Properties provide long-dated, inflation-linked rental income, supporting dividends and long-term growth potential.

Financial Performance

For the year ended 30 June 2025, net rental income stood at GBP 113.2 million, compared with GBP 107.2 million in FY24. EPRA earnings per share were 6.0 pence, compared with 6.1 pence in FY24. IFRS earnings per share were 4.9 pence, compared with (1.7) pence in FY24.

Dividend per share declared was 6.12 pence, compared with 6.06 pence in FY24. EPRA cost ratio declined to 13.0% from 14.7%. IFRS NAV per share was 88.5 pence, compared with 89.8 pence in FY24.

Strategic and Capital Initiatives

The Group completed the internalisation of its management function, expected to deliver annual cost savings of about GBP 4 million. A debut sterling bond issuance of GBP 250 million was completed, fixing debt costs for six years at a 5.125% coupon.

A GBP 403 million joint venture was agreed with Blue Owl Capital, at a 3% premium to the 31 December 2024 book value. This generated net proceeds of about GBP 200 million. In addition, Tesco Newmarket was sold for GBP 63.5 million, a 7.4% premium to its June 2024 book valuation.

Portfolio and Operations

The portfolio was valued at GBP 1,625 million at 30 June 2025, compared with GBP 1,776 million in FY24. Net initial yield remained 5.9%. Lease renewals were secured on three supermarkets, extended to 15 years with RPI-linked annual reviews. Occupancy and rent collection remained at 100% since IPO.

International expansion included the acquisition of nine Carrefour assets in France for EUR 36.7 million through a sale-and-leaseback arrangement, at a 6.8% yield. Post-year-end acquisitions included a Tesco store in Ashford for GBP 54.1 million at a 7.0% yield and a Waitrose store in Anglesey for GBP 4.8 million at a 6.1% yield.

Positioning and Outlook

The Board announced an increased FY26 dividend target of at least 6.18 pence per share. Loan-to-value ratio stood at 31% at 30 June 2025, compared with 37% in FY24. Liquidity totalled about GBP 450 million, including cash and undrawn facilities. Fitch reaffirmed a BBB+ credit rating.