Supermarket Income REIT Plc (SUPR) AI Stock Analysis

• Market Cap: £988.27M
• Dividend Yield: 7.67%
• Average Volume (3M): 2.94M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.61
• 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: 12.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 91.00p ▲(13.75% Upside)

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

Stable Rental Income

Inflation-linked rent reviews provide income security and growth, ensuring stable cash flows even during economic fluctuations.

Strong Profitability Margins

High profitability margins indicate effective cost management and operational efficiency, supporting long-term financial health.

Solid Balance Sheet

A solid balance sheet with moderate leverage and strong equity ensures financial stability and flexibility for future growth.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth could impact future liquidity and limit the company's ability to invest in new opportunities.

Revenue Growth Challenges

Challenges in maintaining revenue growth could hinder the company's ability to expand its market presence and increase shareholder value.

Decreased Total Assets

A decrease in total assets may signal potential issues in asset management or investment, affecting long-term growth prospects.

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 demonstrates 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.38M	114.77M	107.23M	124.58M	115.41M	48.99M
Gross Profit	110.14M	114.77M	107.23M	107.77M	62.71M	41.69M
EBITDA	41.93M	98.77M	92.01M	79.81M	58.17M	37.97M
Net Income	61.53M	61.53M	-21.18M	-144.87M	110.30M	81.96M
Balance Sheet
Total Assets	1.75B	1.75B	1.86B	1.93B	1.81B	1.30B
Cash, Cash Equivalents and Short-Term Investments	95.28M	95.28M	38.69M	37.48M	51.20M	19.58M
Total Debt	603.60M	603.60M	694.17M	667.47M	348.55M	409.68M
Total Liabilities	647.52M	647.52M	741.95M	716.00M	375.58M	431.32M
Stockholders Equity	1.10B	1.10B	1.12B	1.22B	1.43B	871.31M
Cash Flow
Free Cash Flow	45.66M	66.10M	92.06M	335.60M	53.16M	37.14M
Operating Cash Flow	45.69M	66.13M	92.06M	61.91M	53.17M	37.23M
Investing Cash Flow	180.53M	180.58M	-18.67M	-273.69M	-402.85M	-629.55M
Financing Cash Flow	-169.63M	-190.12M	-72.18M	175.65M	371.46M	585.97M

Supermarket Income REIT Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.00
• 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 Positive. The current price of 80 is above the 20-day moving average (MA) of 79.83, above the 50-day MA of 79.66, and above the 200-day MA of 77.30, indicating a bullish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 35.68 is Neutral, 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
BBOX	83 Outperform	£3.93B	8.49	9.42%	5.37%	35.06%	127.62%
LMP	80 Outperform	£4.28B	12.27	7.22%	6.68%	43.70%	40.28%
WHR	77 Outperform	―	―	―	―	1.73%	21.53%
SUPR	74 Outperform	£988.27M	16.05	5.54%	7.67%	7.57%	―
SHED	73 Outperform	―	―	―	―	4.41%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ASLI	60 Neutral	£98.92M	14.29	2.31%	66.07%	0.54%	―

Supermarket Income REIT Plc Corporate Events

Supermarket Income REIT Executives Increase Shareholdings

Supermarket Income REIT PLC announced that key managerial figures, including Nick Hewson, Roger Blundell, and Michael Perkins, have acquired additional shares in the company. This move, disclosed under UK Market Abuse Regulations, indicates a strong vote of confidence in the company’s future prospects and stability, potentially impacting investor perceptions and market positioning.

Supermarket Income REIT Director Increases Shareholding

Supermarket Income REIT PLC announced that Robert Abraham, an Executive Director, has acquired 64,229 Ordinary Shares in the company. This transaction, conducted on the London Stock Exchange, reflects a continued confidence in the company’s market position and potential for growth, as it strengthens the alignment of management interests with those of shareholders.

Supermarket Income REIT Successfully Passes All AGM Resolutions

Supermarket Income REIT plc announced the successful passing of all resolutions at its Annual General Meeting, including the adoption of the Annual Report, approval of the Directors’ Remuneration Report, and the election and re-election of several directors. Notably, Jon Austen retired from the Board, with Roger Blundell succeeding him as the Audit and Risk Committee Chair. The resolutions reflect the company’s ongoing commitment to strategic governance and shareholder engagement, potentially reinforcing its market position and investor confidence.

Supermarket Income REIT Expands Joint Venture with Major Asda Acquisition

Supermarket Income REIT plc has announced a significant expansion of its joint venture with Blue Owl Capital through the acquisition of 10 Asda supermarkets for £196 million and the transfer of £232 million worth of its own assets into the joint venture. This strategic move aims to scale and diversify the joint venture to £833 million, enhance earnings per share by recycling lower-yield assets into higher-yield ones, and extend the average lease term. The transactions are expected to increase SUPR’s exposure to investment-grade tenants and provide additional management fee income, reinforcing its strategy of capital recycling and earnings growth.

Supermarket Income REIT Expands French Portfolio with Carrefour Acquisition

Supermarket Income REIT plc has acquired a portfolio of 20 Carrefour supermarkets in France for €123 million through a sale and leaseback transaction, aligning with its strategy to invest in opportunities that support long-term dividend growth. This acquisition enhances SUPR’s operational scale in France, with the stores benefiting from low competition and forming part of Carrefour’s online fulfilment network. The transaction, funded through an existing credit facility, is expected to enhance earnings and diversify the company’s portfolio, with Carrefour stores now representing approximately 10% of SUPR’s gross asset value.

Supermarket Income REIT Expands with £41M in Strategic Acquisitions

Supermarket Income REIT plc has completed £40.9 million in acquisitions, enhancing earnings and WAULT, with a net initial yield of 6.4%. These acquisitions include a Tesco store in Northern Ireland and 10 Sainsbury’s convenience stores across the UK, marking the company’s entry into the convenience grocery sector. The acquisitions are part of the company’s strategy to redeploy proceeds from a joint venture with Blue Owl Capital, aiming to capitalize on the value in both large and small format grocery spaces.

Supermarket Income REIT Announces Upcoming AGM with Remote Access

Supermarket Income REIT plc has announced its Annual General Meeting (AGM) set for November 24, 2025, allowing shareholders to participate remotely. The company encourages shareholders to vote in advance, emphasizing the importance of their participation. The AGM details, along with the Annual Report and Financial Statements, are accessible on the company’s website. This announcement reflects the company’s commitment to transparency and shareholder engagement, potentially strengthening its market position and stakeholder relations.

Supermarket Income REIT Declares Interim Dividend for Q3 2025

Supermarket Income REIT plc has announced an interim dividend of 1.545 pence per ordinary share for the period from July to September 2025, payable on November 21, 2025. This dividend will be distributed as a Property Income Distribution, with no scrip dividend alternative available, reflecting the company’s commitment to providing cash returns to its shareholders. This announcement underscores the company’s strategy of delivering consistent and growing rental income from its grocery property investments, reinforcing its position as a key player in the essential food infrastructure sector.

Supermarket Income REIT Reports Transformational Year with Strategic Growth Initiatives

Supermarket Income REIT Plc reported a transformational year with strategic initiatives aimed at scaling operations and enhancing earnings growth. The company achieved significant milestones, including internalizing management functions for cost savings, issuing a debut sterling bond, and forming a joint venture with Blue Owl Capital. These actions are expected to improve earnings and dividend cover. The company also expanded its portfolio with acquisitions in the UK and France and renewed leases, demonstrating rent affordability. The grocery market’s resilience and growth, particularly in the UK and France, support the company’s strategic positioning. The firm’s focus on sustainability and governance continues with awards and initiatives, enhancing its appeal to investors.