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Supermarket Income REIT Plc (GB:SUPR)
LSE:SUPR
UK Market

Supermarket Income REIT Plc (SUPR) AI Stock Analysis

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GB

Supermarket Income REIT Plc

(LSE:SUPR)

Rating:80Outperform
Price Target:
Supermarket Income REIT Plc scores strongly due to its attractive valuation and positive technical indicators, despite challenges in profitability. Strategic corporate developments, such as refinancing and a joint venture, bolster its financial flexibility and growth potential. While profitability issues exist, the company's solid balance sheet and strategic initiatives position it well for future growth, making it a compelling option for income-focused investors.
Positive Factors
Dividends
The company's prospective dividend yield of over 8% is well ahead of the REIT average of 5%, representing value and supporting a Buy rating.
Management Changes
The internalisation of the management function is expected to significantly reduce running costs and align the company's structure more closely with shareholders.
Negative Factors
Interest Rates
Interest rate expectations have risen, making future debt refinancing more expensive as the marginal cost of borrowing is approximately 40bps higher than previous forecasts.

Supermarket Income REIT Plc (SUPR) vs. iShares MSCI United Kingdom ETF (EWC)

Supermarket Income REIT Plc Business Overview & Revenue Model

Company DescriptionSupermarket Income REIT plc (LSE: SUPR) is a real estate investment trust dedicated to investing in grocery properties which are an essential part of the UK's feed the nation infrastructure. The Company focuses on grocery stores which are omnichannel, fulfilling online and in-person sales. All of the Company's 45 properties are let to leading UK supermarket operators, diversified by both tenant and geography.
How the Company Makes MoneySupermarket 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 indicated by negative net income in recent years. The balance sheet is solid with a strong equity position, though increasing leverage requires monitoring. Operating cash flow is robust, but inconsistencies in free cash flow growth suggest further analysis is needed. Overall, the company possesses potential for growth if profitability issues are addressed.
Income Statement
65
Positive
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
72
Positive
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
78
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
117.11M107.23M124.58M74.45M48.99M26.35M
Gross Profit
99.45M-12.36M107.77M62.71M41.69M23.10M
EBIT
81.11M26.19M112.66M57.88M37.97M20.87M
EBITDA
38.31M0.000.000.0037.97M20.87M
Net Income Common Stockholders
69.57M-21.18M-144.87M110.30M81.96M32.76M
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.65M38.69M37.48M51.48M19.82M20.35M
Total Assets
504.22M1.86B1.93B1.81B1.30B617.55M
Total Debt
166.37M694.17M667.47M348.55M409.68M126.79M
Net Debt
158.71M655.48M629.98M297.35M390.11M106.44M
Total Liabilities
176.23M741.95M716.00M375.58M431.32M140.38M
Stockholders Equity
327.99M1.12B1.22B1.43B871.31M477.16M
Cash FlowFree Cash Flow
76.34M92.06M335.60M53.16M37.14M22.83M
Operating Cash Flow
76.34M92.06M61.91M53.17M37.23M22.83M
Investing Cash Flow
-166.34M-18.67M-273.69M-402.85M-629.55M-209.90M
Financing Cash Flow
111.53M-72.18M198.06M381.30M591.55M197.52M

Supermarket Income REIT Plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price83.20
Price Trends
50DMA
78.10
Positive
100DMA
73.65
Positive
200DMA
70.84
Positive
Market Momentum
MACD
1.40
Negative
RSI
71.53
Negative
STOCH
84.73
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 83.2 is above the 20-day moving average (MA) of 80.83, above the 50-day MA of 78.10, and above the 200-day MA of 70.84, indicating a bullish trend. The MACD of 1.40 indicates Negative momentum. The RSI at 71.53 is Negative, neither overbought nor oversold. The STOCH value of 84.73 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBLMP
82
Outperform
£4.10B11.588.66%6.02%95.26%
81
Outperform
£3.69B7.5611.28%5.20%38.97%417.46%
80
Outperform
£1.03B14.756.20%7.32%-8.26%1700.00%
GBWHR
77
Outperform
£453.75M12.126.91%6.00%0.17%
73
Outperform
£709.72M39.742.39%4.86%4.41%
61
Neutral
$2.85B10.960.41%8438.88%5.73%-21.25%
53
Neutral
£246.48M96.450.71%6.08%-7.28%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SUPR
Supermarket Income REIT Plc
83.20
16.18
24.14%
GB:LMP
LondonMetric Property
202.00
14.81
7.91%
GB:SHED
Urban Logistics REIT plc
156.40
45.68
41.26%
GB:BBOX
Tritax Big Box REIT
148.70
0.02
0.01%
GB:ASLI
abrdn European Logistics Income PLC
60.20
6.35
11.79%
GB:WHR
Warehouse REIT PLC
106.80
30.58
40.12%

Supermarket Income REIT Plc Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Supermarket Income REIT Secures £90 Million Refinancing Deal
Positive
May 1, 2025

Supermarket Income REIT plc has successfully completed a £90 million refinancing through a new unsecured debt facility with Barclays, replacing existing secured debt facilities with Wells Fargo and Bayerische Landesbank. This strategic move, which includes capping the interest rate at 5.0% for three years using existing interest rate hedges, is expected to enhance the company’s financial flexibility and maintain its competitive edge in the market. The refinancing, alongside a recent joint venture, positions the company with an expected pro-forma loan-to-value ratio of approximately 31%, reflecting its robust financial health and strong lender relationships.

Spark’s Take on GB:SUPR Stock

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

Supermarket Income REIT Plc’s strong technical indicators and strategic corporate developments drive its positive outlook. The company benefits from an attractive valuation due to a high dividend yield and reasonable P/E ratio. Despite challenges in profitability, its solid balance sheet and strategic initiatives position it well for future growth.

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

Private Placements and FinancingBusiness Operations and Strategy
Supermarket Income REIT Secures £90 Million Refinancing with Barclays
Positive
May 1, 2025

Supermarket Income REIT plc has completed a £90 million refinancing through a new unsecured debt facility with Barclays, replacing existing secured debts with Wells Fargo and Bayerische Landesbank. This strategic move is expected to enhance the company’s financial flexibility and maintain attractive debt financing margins, which could positively impact its operational stability and stakeholder confidence.

Spark’s Take on GB:SUPR Stock

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

Supermarket Income REIT Plc’s strong technical indicators and strategic corporate developments drive its positive outlook. The company benefits from an attractive valuation due to a high dividend yield and reasonable P/E ratio. Despite challenges in profitability, its solid balance sheet and strategic initiatives position it well for future growth.

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

Business Operations and Strategy
Supermarket Income REIT Forms Strategic JV with Blue Owl Capital
Positive
Apr 24, 2025

Supermarket Income REIT plc has announced a strategic joint venture with Blue Owl Capital, a US asset manager, to manage a portfolio of UK supermarket assets valued at £403 million. This joint venture aims to grow the portfolio to £1 billion, leveraging the expertise of both companies. The transaction allows Supermarket Income REIT to recycle capital, reduce debt, and potentially increase earnings through management and performance fees. This move strengthens its position in the UK grocery real estate sector and provides a platform for future growth, benefiting shareholders by enhancing earnings and maintaining a stake in a growing asset pipeline.

Spark’s Take on GB:SUPR Stock

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

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.

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

Dividends
Supermarket Income REIT Declares Interim Dividend, Suspends Scrip Option
Neutral
Apr 3, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Supermarket Income REIT Completes Management Internalisation
Positive
Mar 26, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
Supermarket Income REIT PLC Adjusts Voting Rights Structure
Neutral
Mar 26, 2025

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.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Supermarket Income REIT Approves Key Resolutions at General Meeting
Positive
Mar 21, 2025

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.

Business Operations and Strategy
Supermarket Income REIT Sees Change in Major Holdings by Ameriprise Financial
Neutral
Mar 13, 2025

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.

Business Operations and StrategyFinancial Disclosures
Supermarket Income REIT Reports Strong Interim Results and Strategic Progress
Positive
Mar 11, 2025

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.

Delistings and Listing ChangesM&A TransactionsBusiness Operations and Strategy
Supermarket Income REIT to Internalize Management for Strategic Growth
Positive
Mar 4, 2025

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.

Financial Disclosures
Supermarket Income REIT to Announce Half-Year Results in March
Neutral
Feb 28, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Supermarket Income REIT Advances Portfolio Initiatives with Strategic Sales and Acquisitions
Positive
Feb 24, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
BlackRock Crosses 5% Threshold in Supermarket Income REIT
Neutral
Feb 21, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.