Supermarket Income REIT (SUPR.L) reported a strong turnaround for the year ended June 30, posting IFRS earnings per share of 4.9 pence compared with a 1.7 pence loss last year.
Net rental income rose 6% to £113.2 million, though EPRA earnings per share edged slightly lower to 6.0 pence. The board declared a dividend of 6.12 pence per share, up from 6.06 pence, and set a minimum target of 6.18 pence for 2026.
The property portfolio was valued at £1.63 billion, down 8% year-on-year but up 1.9% on a like-for-like basis. Loan-to-value was cut to 31% from 37%, supported by a £403 million joint venture with Blue Owl Capital and the £63.5 million sale of a Tesco store at a 7.4% premium to book value.
The company expanded its portfolio with acquisitions, including a Sainsbury's store in Huddersfield for £49.7 million and nine Carrefour properties in France for €36.7 million. Post-year-end, SUPR purchased a Tesco store in Ashford and a Waitrose in Anglesey. Administrative expenses dropped 5% to £14.5 million, improving the EPRA cost ratio to 13%, with additional savings expected from the recently completed internalisation of management, projected to save at least £4 million annually. A £250 million sterling bond was issued to lock in debt costs for six years.
CEO Robert Abraham called the year "transformational," highlighting strategic milestones that position the company for renewed growth and greater shareholder alignment. SUPR maintained 100% occupancy and rent collection, with Tesco and Sainsbury's accounting for 71% of its rent roll.
The company also noted strong market fundamentals, with UK grocery sales rising 5.4% year-on-year in July and forecast to hit £259 billion in 2025. Tesco and Sainsbury's hold a combined 43% share of the market, while Carrefour continues to grow in France, expected to reach a 21.5% market share by 2029. Chair Nick Hewson said the year's initiatives confirmed the affordability of rents across SUPR's portfolio and strengthened asset valuations.
Wednesday SUPR.L closed at $77.8 or 1.02% lower on the London Stock Exchange.
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