Supermarket Income REIT redeploys JV capital and sets 2% dividend growth target from FY27

Supermarket Income REIT Plc ( (GB:SUPR) ) has provided an announcement.

Supermarket Income REIT reported interim results for the six months to 31 December 2025 that were broadly in line with market expectations, with annualised passing rent up 11% and portfolio valuation rising 27% to £2.06 billion, while EPRA earnings per share dipped 10% and dividend cover fell to 88%. The company highlighted that lower earnings mainly reflect temporary cash drag from its expanded joint venture and one-off refinancing costs, which it expects to unwind after fully redeploying JV capital into £398 million of earnings-enhancing acquisitions.

Management said all JV proceeds have now been redeployed and updated guidance to a target sustainable minimum dividend uplift of 2% per year from FY27 onwards, supported by secure, inflation-linked income. The REIT’s EPRA cost ratio improved sharply to 9.2%, among the lowest in the sector, underscoring the benefits of internalising management and its shareholder-aligned platform.

The portfolio’s like-for-like valuation increased 1.3%, with a portfolio net initial yield of 6.0% and loan-to-value rising to 45% as the group used leverage, including a debut bond issue, to scale its grocery assets. Management emphasised that rising supermarket sales and the mission-critical role of omnichannel stores in both physical and online grocery are creating a compelling growth backdrop, and said it aims to double the portfolio over time.

SUPR has broadened its tenant and asset mix through direct sale-and-leaseback deals, including 20 Carrefour supermarkets acquired by the company and 10 Asda supermarkets acquired via the JV, all described as strategically important, long-trading sites. The group is also pursuing diversification into grocery-anchored retail parks, European supermarkets and potentially grocery distribution assets, backed by a pipeline of more than £500 million in opportunities.

On the sustainability front, Supermarket Income REIT secured its first EPRA Sustainability Best Practices Gold Award alongside a seventh consecutive EPRA Gold Award for financial reporting, and joined the UN Global Compact to reinforce its commitment to responsible business practices. The board noted that strong strategic execution and sector specialism have helped narrow the discount of the company’s shares to net tangible assets, supporting its positioning as a leading player in grocery real estate.

The most recent analyst rating on (GB:SUPR) stock is a Hold with a £89.00 price target. To see the full list of analyst forecasts on Supermarket Income REIT Plc stock, see the GB:SUPR Stock Forecast page.

Spark’s Take on GB:SUPR Stock

According to Spark, TipRanks’ AI Analyst, GB:SUPR is a Outperform.

Supermarket Income REIT Plc is well-positioned with a stable financial performance and strong corporate actions. The technical indicators suggest a positive momentum, and the valuation is attractive due to a high dividend yield. The recent strategic acquisitions and executive confidence further bolster the stock’s appeal.

To see Spark’s full report on GB:SUPR stock, click here.

More about Supermarket Income REIT Plc

Supermarket Income REIT plc is a FTSE 250-listed grocery real estate investor focused on high-quality omnichannel supermarkets and grocery properties that support both online and in-store sales. Its portfolio, valued at about £2.1 billion as of 31 December 2025, is let to leading UK and European supermarket operators on long-dated, inflation-linked leases, targeting progressive dividends and long-term capital growth.

Average Trading Volume: 3,161,497

Technical Sentiment Signal: Strong Buy

Current Market Cap: £1.04B

See more insights into SUPR stock on TipRanks’ Stock Analysis page.