Supermarket Income REIT Plc (SUPR) AI Stock Analysis

• Market Cap: £977.05M
• Dividend Yield: 7.79%
• Average Volume (3M): 5.02M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.95
• Revenue Growth: -8.26%
• EPS Growth: 1700.00%
• Country: UK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 82
• Industry: REIT - Retail
• EPS (TTM): 0.06
• Shares Outstanding: 1,246,236,200
• 10 Day Avg. Volume: 5,413,047
• 30 Day Avg. Volume: 5,018,421
• PEG Ratio: 0.00826
• Price to Book (P/B): N/A
• Price to Sales (P/S): 9.70
• Price to Cash Flow (P/CF): 9.60
• P/FCF Ratio: 6.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 84.67p
• Price Target Upside: 8.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Supermarket Income REIT Plc presents a strong investment case, supported by solid technical indicators, attractive valuation metrics, and positive corporate developments. While profitability challenges exist, the company's strategic initiatives and strong balance sheet position it well for future growth. Investors may find the high dividend yield particularly appealing in the current market environment.

Positive Factors

Dividend Yield

The prospective dividend yield of over 8% surpasses the REIT average, representing value and supporting a Buy rating.

Management Changes

Supermarket Income REIT has completed the internalisation of the management function, significantly reducing operational costs and aligning with shareholder interests.

Portfolio Diversification

The addition of the Carrefour portfolio diversifies Supermarket Income REIT's assets into the continental European supermarket sector with strong tenant covenants.

Negative Factors

Interest Rates

Rising interest rate expectations mean that future debt refinancing costs are higher than previously forecasted, affecting borrowing expenses.

Share Performance

Supermarket Income REIT's shares have not shared in the modest improvement in the wider sector, falling slightly like other income-oriented stocks.

Supermarket Income REIT Plc Business Overview & Revenue Model

Company Description

Supermarket Income REIT Plc (SUPR) is a real estate investment trust that focuses on acquiring and managing a portfolio of supermarket properties in the United Kingdom. The company primarily invests in omnichannel supermarket sites, which serve both in-store and online grocery shopping, ensuring a stable and secure income stream. SUPR's properties are leased to leading UK supermarket operators, providing essential retail infrastructure that benefits from strong, non-discretionary consumer demand.

How the Company Makes Money

Supermarket Income REIT Plc makes money by leasing its portfolio of supermarket properties to well-established UK supermarket operators. The company's revenue model is primarily based on collecting rental income from long-term lease agreements with these tenants. The lease agreements often include upward-only rent reviews, providing predictable and inflation-protected cash flows. SUPR's focus on omnichannel supermarkets, which facilitate both physical shopping and online deliveries, enhances the resilience and growth potential of its income streams. The company benefits from strong tenant covenants and high occupancy rates, ensuring a consistent and reliable revenue base.

Supermarket Income REIT Plc Financial Statement Overview

Summary

Supermarket Income REIT Plc demonstrates stable revenue generation but struggles with profitability, as reflected by negative net income in recent years. The balance sheet is solid with a strong equity position, though increasing leverage requires monitoring. Cash flow is robust, showing efficient cash conversion from operations despite inconsistencies in free cash flow growth. Overall, the entity has potential for growth if profitability issues are addressed.

Income Statement

Supermarket Income REIT Plc has shown a fluctuating revenue trend, with a recent decline in total revenue from 2023 to 2024. The gross profit margin remains stable, but the company is struggling with profitability, as indicated by the negative net income in recent years. EBIT margin has decreased significantly, reflecting operational challenges. The entity needs to enhance its cost management to improve net profit margins.

Balance Sheet

The balance sheet reveals a reasonable debt-to-equity ratio, although it has increased over the years. The equity ratio indicates a strong equity position relative to assets, which is a positive sign. However, the declining return on equity (ROE) highlights issues with generating adequate returns from equity investments.

Cash Flow

The cash flow statement shows healthy operating cash flow, with a positive trajectory in free cash flow. However, the free cash flow growth rate has been inconsistent. The operating cash flow to net income ratio is favorable, indicating efficient cash conversion from operations, despite the negative net income figures.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
107.23M	124.58M	74.45M	48.99M	26.35M
	Gross Profit
107.23M	107.77M	62.71M	41.69M	23.10M
	EBIT
26.19M	112.66M	57.88M	37.97M	20.87M
	EBITDA
6.03M	0.00	0.00	37.97M	20.87M
	Net Income Common Stockholders
-21.18M	-144.87M	110.30M	81.96M	32.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.69M	37.48M	51.48M	19.82M	20.35M
	Total Assets
1.86B	1.93B	1.81B	1.30B	617.55M
	Total Debt
694.17M	667.47M	348.55M	409.68M	126.79M
	Net Debt
655.48M	629.98M	297.35M	390.11M	106.44M
	Total Liabilities
741.95M	716.00M	375.58M	431.32M	140.38M
	Stockholders Equity
1.12B	1.22B	1.43B	871.31M	477.16M
Cash Flow		Free Cash Flow
92.06M	335.60M	53.16M	37.14M	22.83M
	Operating Cash Flow
92.06M	61.91M	53.17M	37.23M	22.83M
	Investing Cash Flow
-18.67M	-273.69M	-402.85M	-629.55M	-209.90M
	Financing Cash Flow
-72.18M	198.06M	381.30M	591.55M	197.52M

Supermarket Income REIT Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SUPR, the sentiment is Positive. The current price of 78.2 is above the 20-day moving average (MA) of 76.28, above the 50-day MA of 73.75, and above the 200-day MA of 70.59, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 62.14 is Neutral, neither overbought nor oversold. The STOCH value of 92.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SUPR.

Supermarket Income REIT Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUPR	82 Outperform	£977.05M	14.05	6.20%	7.79%	-8.26%	1700.00%
SREI	68 Neutral	£245.53M	80.97	1.05%	6.58%	―	―
BLND	65 Neutral	£3.76B	20.65	3.17%	6.06%	-30.83%	―
Sector *	60 Neutral	$3.00B	12.40	0.61%	9872.56%	7.62%	-2.59%
HMSO	54 Neutral	£1.22B	―	-2.09%	6.08%	6.08%	―
LAND	50 Neutral	£4.19B	39.70	1.61%	7.08%	-1.73%	―

Supermarket Income REIT Plc Corporate Events

Supermarket Income REIT Declares Interim Dividend, Suspends Scrip Option

Supermarket Income REIT plc has announced an interim dividend of 1.53 pence per share for the period from January to March 2025, to be paid in cash on or around May 23, 2025. Due to the company’s shares trading at a discount, the board has decided to suspend the scrip dividend alternative, opting instead for a cash-only distribution. This decision reflects the board’s focus on shareholder interests and financial prudence, while they continue to evaluate the potential for offering a scrip dividend in future quarters.

Supermarket Income REIT Completes Management Internalisation

Supermarket Income REIT plc has completed the internalisation of its management function, appointing Rob Abraham as CEO and Mike Perkins as CFO. This strategic move, approved by shareholders, is expected to enhance earnings and reduce the discount to NAV, ensuring continued value delivery for shareholders.

Supermarket Income REIT PLC Adjusts Voting Rights Structure

Supermarket Income REIT PLC announced a change in its voting rights structure following the transfer out of temporary proxy voting shares. Ameriprise Financial, Inc., a major shareholder, adjusted its holdings, resulting in a slight decrease in its voting rights percentage from 5.055% to 4.812%. This adjustment reflects a strategic realignment of voting rights, which could impact the company’s governance and influence within the industry.

Supermarket Income REIT Approves Key Resolutions at General Meeting

Supermarket Income REIT plc announced that all resolutions were passed at its General Meeting, including the approval of transaction documents, a new directors’ remuneration policy, and an increase in directors’ remuneration limit. The company also approved the rules for its Long Term Incentive Plan, which allows for the establishment of further plans adjusted for local regulations. This outcome supports the company’s strategic initiatives and may enhance its operational flexibility and attractiveness to investors.

Supermarket Income REIT Sees Change in Major Holdings by Ameriprise Financial

Supermarket Income REIT PLC has announced a change in its major holdings, with Ameriprise Financial, Inc. adjusting its voting rights in the company. As of March 10, 2025, Ameriprise’s total voting rights in Supermarket Income REIT increased slightly to 5.055%, reflecting a strategic adjustment in their investment position. This change in holdings could influence the company’s strategic decisions and potentially impact its market positioning, as Ameriprise Financial is a significant stakeholder.

Supermarket Income REIT Reports Strong Interim Results and Strategic Progress

Supermarket Income REIT Plc reported resilient financial performance for the six months ending December 2024, with a 13% increase in annualised passing rent and a 167% rise in IFRS earnings per share. The company is advancing its strategic objectives, including the internalisation of its management function, which is expected to yield significant cost savings and enhance shareholder alignment. The sale of a Tesco store above book value and acquisitions in the UK and France underscore the attractiveness of its assets and strategic capital recycling efforts. The company is also focused on maintaining a strong balance sheet, with 93% of its debt hedged to fixed rates, and continues to explore opportunities for earnings-enhancing acquisitions.

Supermarket Income REIT to Internalize Management for Strategic Growth

Supermarket Income REIT Plc has announced plans to internalize its management function by acquiring Atrato Group’s management services for £19.7 million, funded by the sale of a Tesco store. This move aims to achieve significant cost savings, enhance earnings, and improve shareholder returns, while also providing strategic flexibility and potential for future growth. The internalization is expected to align the company’s management with shareholder interests and simplify its structure, positioning it for further expansion and a potential listing category change.

Supermarket Income REIT to Announce Half-Year Results in March

Supermarket Income REIT plc has announced that it will release its half-year results for the period ending December 31, 2024, on March 11, 2025. The company will host an in-person and webcast presentation for analysts and investors, followed by an investor presentation on March 13, 2025, through the Investor Meet Company platform. This announcement is significant as it provides stakeholders with insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor relations.

Supermarket Income REIT Advances Portfolio Initiatives with Strategic Sales and Acquisitions

Supermarket Income REIT plc announced significant progress in its portfolio initiatives, including the sale of a Tesco store at a premium price and lease renewals that enhance its capital value. The company also expanded its portfolio with the acquisition of nine Carrefour supermarkets in France, financed through new senior unsecured notes, reinforcing its growth strategy and market positioning.

BlackRock Crosses 5% Threshold in Supermarket Income REIT

Supermarket Income REIT PLC announced that BlackRock, Inc. has crossed the 5% threshold of voting rights, indicating an acquisition or disposal of both voting rights and financial instruments. This change in BlackRock’s holdings reflects a strategic adjustment in their investment, potentially impacting the company’s influence on shareholder decisions and market perception.

Supermarket Income REIT Retains ‘BBB+’ Rating with Stable Outlook

Supermarket Income REIT plc announced that Fitch Ratings has reaffirmed its investment grade long-term Issuer Default Rating of ‘BBB+’ with a stable outlook. This affirmation from Fitch underscores the company’s stable financial position and supports its strategy of generating secure, long-term income from grocery property investments, benefiting its stakeholders by maintaining strong market confidence.

BlackRock Reduces Stake in Supermarket Income REIT PLC

Supermarket Income REIT PLC announced a change in substantial holdings as BlackRock, Inc. reduced its voting rights in the company to below 5%. This adjustment in holdings may impact the company’s shareholder structure, though the overall influence of BlackRock remains significant given its previous stake level.

Supermarket Income REIT Director Acquires 100,000 Shares

Supermarket Income REIT PLC announced a share acquisition by Roger Blundell, a non-executive director of the company, who purchased 100,000 ordinary shares. This transaction, conducted on the London Stock Exchange, demonstrates internal confidence in the company’s prospects, potentially impacting shareholder perceptions and market positioning by reinforcing trust in its financial stability and future growth.

Supermarket Income REIT Appoints Roger Blundell as Non-Executive Director

Supermarket Income REIT plc has announced the appointment of Roger Blundell as an independent non-executive director, effective immediately. Blundell, a seasoned Chartered Accountant with over 30 years of experience in real estate and retail, will join several of the company’s committees and succeed Jon Austen as Chair of the Audit and Risk Committee. This strategic appointment aligns with the Board’s succession plan and is expected to enhance the board’s expertise, contributing positively to the company’s governance and operational oversight.