Supermarket Income REIT (SUPR), listed on the premium segment of the LSE, invests in supermarket property, let to leading UK supermarket operators, on long, RPI-linked leases. The investment objective is to provide an attractive level of income, with the potential for capital growth.
Across all main sectors, the market continues to adjust to an increased cost of capital. The company’s supermarket assets have the benefit of visible income from long, mostly indexed, leases, a strong occupier covenant and the non-cyclical nature of grocery retailing. Investment volumes in supermarket property have been significantly more resilient than for the wider market.
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Chris McMahon
Investor relations
Michael Perkins
Finance director
Rob Abraham
Managing director
Steven Noble
Chief investment officer
Forecast net debt (£m)
544.3
Forecast gearing ratio (%)
45
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (3.4) | (7.2) | 0.1 |
Relative | (2.1) | (10.5) | (9.6) |
52 week high/low | 88.5p/70.3p |
Although the UK grocery sector is generating strong sales growth, supermarket property yields continued to widen in H124, in line with the broader property market. Combined with the market expectation that interest rates will soon fall, Supermarket Income REIT has identified attractive opportunities to resume accretive portfolio growth. Since H124 it has acquired one store in the UK and has made its first investment in France, acquiring a portfolio of 17 omnichannel stores, operated by Carrefour, for €75m. The acquisition adds another very strong tenant covenant and opens up significant further opportunities for growth in the large European market, with a continued focus on structural growth in online grocery shopping.
Y/E Jun | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 69.7 | 58.2 | 57.4 | 5.9 | 12.1 | 11.1 |
2023A | 93.3 | 79.8 | 57.2 | 4.6 | 15.6 | 10.6 |
2024E | 103.9 | 92.6 | 75.9 | 6.1 | 11.7 | 8.4 |
2025E | 107.5 | 96.0 | 77.1 | 6.2 | 11.5 | 9.6 |