Supermarket Income REIT Plc (SUPR) AI Stock Analysis

• Market Cap: £1.05B
• Dividend Yield: 7.7%
• Average Volume (3M): 2.94M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.57
• Revenue Growth: 7.57%
• EPS Growth: N/A
• Country: UK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.03
• Shares Outstanding: 1,246,239,100
• 10 Day Avg. Volume: 2,892,521
• 30 Day Avg. Volume: 2,940,881
• PEG Ratio: -0.04
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 9.29
• P/FCF Ratio: 16.13
• 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: £90.00
• Price Target Upside: 6.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): £99.00M

• Rating: 74 Outperform
• Price Target: 99.00p ▲(17.30% Upside)
• Action: Upgraded Date: 12/07/25
• Date: Action: Upgraded 12/07/25

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.

Positive Factors

Contracted rental cash flows

Long-term supermarket leases create predictable, durable rental cash flows for a REIT. Contracted rents and lease structures with indexation or rent review mechanisms underpin recurring income, support dividend distributions, and reduce earnings volatility across 2–6 month horizons and beyond.

High and sustained operating margins

Consistently high gross margins and a materially improved net margin indicate efficient cost structures and pricing power in the portfolio. Such margin durability supports sustained cash generation, resilience to cyclical retail pressures, and capacity to cover financing and dividend obligations over the medium term.

Moderate leverage and solid equity base

A moderate debt-to-equity ratio and strong equity ratio provide financial flexibility, lowering refinancing risk and enabling selective acquisitions. Improved ROE from prior losses signals returning profitability, giving the company room to pursue accretive deals or withstand sector stress without overleveraging.

Negative Factors

Declining free cash flow growth

A notable drop in free cash flow growth erodes internal funding sources for capex, acquisitions, and dividend cover. Persistently weaker FCF growth can force higher external financing, constrain reinvestment, and reduce margin for error during tenant turnover or rent reversion cycles over the medium term.

Recent revenue growth headwinds

A contraction in revenue growth signals potential pressures on rent roll, lease renewals, or market rents. If revenue momentum remains negative, it could limit earnings scalability and the ability to offset rising costs or interest expense, challenging dividend sustainability and longer-term growth plans.

Slight asset base contraction

A declining asset base can reflect disposals, valuation weakness, or lower acquisition activity, which may reduce future income-generating capacity. Over time, shrinking assets constrain rental income growth and portfolio diversification, increasing reliance on existing tenancy performance to sustain distributions.

Supermarket Income REIT Plc Business Overview & Revenue Model

Company Description

Supermarket 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 Money

Supermarket Income REIT Plc generates revenue primarily through long-term leases with its tenants, which are predominantly large supermarket chains. The company earns rental income from these leases, which typically have inflation-linked rent reviews, providing a degree of income security and growth. Additionally, the REIT may benefit from property value appreciation over time. Key revenue streams include base rent payments and potential increases tied to consumer price index adjustments. The stability of cash flows is bolstered by the essential nature of the supermarket sector, as grocery retailers maintain strong demand even during economic downturns. SUPR might also engage in strategic partnerships or joint ventures with other investors or retail operators to enhance its portfolio and expand its market presence, further contributing to its revenue generation.

Supermarket Income REIT Plc Financial Statement Overview

Summary

Supermarket Income REIT Plc shows stable financial performance with strong profitability margins and a solid balance sheet. Despite challenges in revenue growth, the company has improved its net profit margin significantly. The balance sheet reflects moderate leverage and a strong equity position, while cash flow generation remains robust despite a decline in free cash flow growth.

Income Statement

Supermarket Income REIT Plc has shown a mixed performance in its income statement. The company experienced a slight decline in revenue growth rate of -1.99% in the most recent year, indicating a potential challenge in maintaining revenue momentum. However, the company has maintained strong gross profit margins, consistently above 80%, which suggests effective cost management. The net profit margin has fluctuated significantly, with a notable improvement to 53.6% in the latest year from a negative margin in the previous year, indicating improved profitability. The EBIT and EBITDA margins are strong, reflecting efficient operations.

Balance Sheet

The balance sheet of Supermarket Income REIT Plc shows a stable financial position with a debt-to-equity ratio of 0.55, indicating moderate leverage. The equity ratio stands at 63%, reflecting a solid equity base. Return on equity has improved significantly to 5.6% from negative values, suggesting enhanced profitability for shareholders. The company's total assets have decreased slightly, but the overall financial stability remains robust.

Cash Flow

The cash flow statement reveals a decrease in free cash flow growth rate by -13.42%, which could be a concern for future liquidity. However, the operating cash flow to net income ratio is strong at 1.08, indicating good cash generation relative to net income. The free cash flow to net income ratio is also healthy, suggesting that the company is generating sufficient cash to cover its net income.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	114.77M	107.23M	124.58M	115.41M	48.99M
Gross Profit	114.77M	107.23M	107.77M	62.71M	41.69M
EBITDA	98.77M	92.01M	79.81M	58.17M	37.97M
Net Income	61.53M	-21.18M	-144.87M	110.30M	81.96M
Balance Sheet
Total Assets	1.75B	1.86B	1.93B	1.81B	1.30B
Cash, Cash Equivalents and Short-Term Investments	95.28M	38.69M	37.48M	51.20M	19.58M
Total Debt	603.60M	694.17M	667.47M	348.55M	409.68M
Total Liabilities	647.52M	741.95M	716.00M	375.58M	431.32M
Stockholders Equity	1.10B	1.12B	1.22B	1.43B	871.31M
Cash Flow
Free Cash Flow	66.10M	92.06M	335.60M	53.16M	37.14M
Operating Cash Flow	66.13M	92.06M	61.91M	53.17M	37.23M
Investing Cash Flow	180.58M	-18.67M	-273.69M	-402.85M	-629.55M
Financing Cash Flow	-190.12M	-72.18M	175.65M	371.46M	585.97M

Supermarket Income REIT Plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 84.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SUPR, the sentiment is Neutral. The current price of 84.4 is below the 20-day moving average (MA) of 86.04, above the 50-day MA of 83.72, and above the 200-day MA of 79.00, indicating a neutral trend. The MACD of 0.69 indicates Positive momentum. The RSI at 44.30 is Neutral, neither overbought nor oversold. The STOCH value of 26.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
SRE	77 Outperform	£1.65B	4.93	12.51%	5.71%	4.80%	37.75%
SUPR	74 Outperform	£1.05B	17.33	5.54%	7.70%	7.57%	―
CREI	72 Outperform	£418.12M	3.34	11.71%	7.17%	1.60%	211.81%
NRR	71 Outperform	£333.33M	5.78	6.94%	9.66%	84.02%	53.97%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PCTN	60 Neutral	£427.46M	6.81	7.51%	5.15%	-3.98%	412.08%
TOWN	46 Neutral	£49.46M	-16.58	-2.97%	3.94%	16.08%	56.94%

Supermarket Income REIT Plc Corporate Events

Supermarket Income REIT Sets March Date for Half-Year Results and Investor Presentations

Supermarket Income REIT plc, a FTSE 250 specialist in grocery property investment, concentrates on omnichannel supermarkets that underpin national food infrastructure and serve both online and in-store customers in the UK and Europe. The portfolio, valued at £1.6 billion as of 30 June 2025, is structured to provide long-dated, inflation-linked rental income that supports progressive dividends and long-term capital growth for shareholders.

The company will release its half-year results for the six months to 31 December 2025 on 11 March 2026 and will host an in-person and webcast presentation for analysts and investors that morning. Management will follow this with a separate online presentation via the Investor Meet Company platform on 13 March 2026, broadening access for retail and institutional investors and underlining the REIT’s focus on active engagement with its investor base.

The most recent analyst rating on (GB:SUPR) stock is a Buy with a £98.00 price target. To see the full list of analyst forecasts on Supermarket Income REIT Plc stock, see the GB:SUPR Stock Forecast page.

Supermarket Income REIT Adds Peel Hunt as Joint Corporate Broker

Supermarket Income REIT plc, a specialist real estate investment trust listed in London and Johannesburg, invests exclusively in grocery-led properties that support both online and in-store supermarket sales for major operators in the UK and Europe. Its £1.6 billion portfolio generates long-dated, secure, inflation-linked rental income, supporting a progressive dividend strategy and potential long-term capital growth.

The company has appointed Peel Hunt LLP as a joint corporate broker, joining Goldman Sachs International and Stifel Nicolaus Europe Limited in advising on capital markets matters. The expanded brokerage line-up is likely aimed at strengthening investor engagement, enhancing liquidity in the shares, and supporting the REIT’s positioning and access to capital across its dual listings in the UK and South Africa.

The most recent analyst rating on (GB:SUPR) stock is a Hold with a £90.00 price target. To see the full list of analyst forecasts on Supermarket Income REIT Plc stock, see the GB:SUPR Stock Forecast page.

Supermarket Income REIT Declares Second Quarterly Cash Dividend

Supermarket Income REIT plc has declared an interim dividend of 1.545 pence per ordinary share for the quarter from 1 October to 31 December 2025, to be paid in cash on or around 27 February 2026 as a Property Income Distribution to shareholders on the register at 30 January 2026. The decision to pay the second quarterly dividend fully in cash, with no scrip alternative for this period, underscores the company’s focus on delivering predictable income from its grocery-focused property portfolio, while leaving open the possibility of reintroducing a scrip option for future dividends as it continues to position itself as a stable income vehicle in the essential food infrastructure segment.

The most recent analyst rating on (GB:SUPR) stock is a Buy with a £91.00 price target. To see the full list of analyst forecasts on Supermarket Income REIT Plc stock, see the GB:SUPR Stock Forecast page.

Supermarket Income REIT Buys Three UK Grocers for £98m in Portfolio Expansion

Supermarket Income REIT has acquired three long-established UK supermarkets for a combined £97.6 million at an average net initial yield of 5.5%, as it continues to expand its portfolio of income-generating grocery assets. The properties—a Tesco in Aylesbury, a Sainsbury’s in Sale and a Waitrose in Frimley—are all on triple-net leases with 11 to 16 years unexpired, feature inflation-linked rent review mechanisms and support omnichannel operations through home delivery and click-and-collect facilities. Funded via the drawdown of its existing debt facilities, the acquisitions are expected to be earnings accretive and will lift the company’s pro-forma loan-to-value ratio to about 43%, extend the portfolio’s weighted average unexpired lease term to 12 years and increase exposure to investment-grade tenants to 75%, reinforcing SUPR’s position as a leading landlord to major grocery chains and underlining its capital recycling strategy, including around £400 million redeployed this year alongside growth of its joint venture with Blue Owl Capital-managed funds.

The most recent analyst rating on (GB:SUPR) stock is a Buy with a £91.00 price target. To see the full list of analyst forecasts on Supermarket Income REIT Plc stock, see the GB:SUPR Stock Forecast page.

Supermarket Income REIT’s BBB+ Rating Reaffirmed by Fitch

Supermarket Income REIT plc has had its BBB+ investment grade rating reaffirmed by Fitch Ratings, with a stable outlook. This reaffirmation underscores the company’s robust financial standing and its strategic focus on grocery properties, which are essential to food infrastructure. The stable rating is likely to bolster stakeholder confidence and support the company’s growth objectives in the grocery property investment sector.

The most recent analyst rating on (GB:SUPR) stock is a Buy with a £91.00 price target. To see the full list of analyst forecasts on Supermarket Income REIT Plc stock, see the GB:SUPR Stock Forecast page.