Supermarket Income REIT Plc (SUPR) AI Stock Analysis

• Market Cap: £1.03B
• Dividend Yield: 7.7%
• Average Volume (3M): 2.94M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.63
• 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: £92.50
• Price Target Upside: 11.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): £99.00M

• Rating: 74 Outperform
• Price Target: 99.00 p ▲(19.28% 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

Stable contracted rental income

Long-term supermarket leases produce predictable, contracted rental cash flows that are resilient versus cyclical retail. That contractual income supports stable distributions, more reliable debt servicing and multi-quarter planning, strengthening the REIT's income durability.

Solid balance sheet and equity base

Moderate leverage (D/E ~0.55) and a 63% equity ratio provide financial headroom and shock absorption. Improved ROE to 5.6% signals rising shareholder returns and operating recovery, enabling capacity for selective acquisitions and preserving liquidity for distributions over the medium term.

High margins and improved profitability

Very high gross margins and a large net margin reflect low operating cost relative to rental income and improved portfolio profitability. Sustained margins enhance dividend coverage and internal capital generation, supporting reinvestment and resilience to modest revenue swings.

Negative Factors

Negative revenue growth trend

A negative revenue growth trend (-4.33%) signals weakening top-line momentum for rental income or slower portfolio expansion. Over several quarters this can limit distributable income growth and force greater reliance on acquisitions or capital raises to sustain dividend levels.

Declining free cash flow growth

A -13.42% drop in free cash flow growth reduces internal funding available for dividends, capex, or acquisitions. Persistent FCF decline pressures financial flexibility, may increase dependence on external financing, and can raise the long-term cost of capital for portfolio investment.

Slight asset base contraction

A slight decline in total assets suggests limited portfolio growth or valuation adjustments. A contracting asset base can cap future rental income expansion, reduce scale benefits and constrain the REIT's ability to grow dividends organically without deploying new capital.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	111.66M	114.77M	107.23M	124.58M	115.41M	48.99M
Gross Profit	106.73M	114.77M	107.23M	107.77M	62.71M	41.69M
EBITDA	54.98M	98.77M	92.01M	79.81M	58.17M	37.97M
Net Income	61.32M	61.53M	-21.18M	-144.87M	110.30M	81.96M
Balance Sheet
Total Assets	2.04B	1.75B	1.86B	1.93B	1.81B	1.30B
Cash, Cash Equivalents and Short-Term Investments	48.04M	95.28M	38.69M	37.48M	51.20M	19.58M
Total Debt	885.22M	603.60M	694.17M	667.47M	348.55M	409.68M
Total Liabilities	936.20M	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	46.90M	66.10M	92.06M	335.60M	53.16M	37.14M
Operating Cash Flow	46.93M	66.13M	92.06M	61.91M	53.17M	37.23M
Investing Cash Flow	-92.40M	180.58M	-18.67M	-273.69M	-402.85M	-629.55M
Financing Cash Flow	52.88M	-190.12M	-72.18M	175.65M	371.46M	585.97M

Supermarket Income REIT Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 83.00
• 50DMA: Negative
• 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 Negative. The current price of 83 is below the 20-day moving average (MA) of 85.71, below the 50-day MA of 84.07, and above the 200-day MA of 79.17, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 41.75 is Neutral, neither overbought nor oversold. The STOCH value of 33.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	£1.53B	4.93	12.27%	5.71%	4.80%	37.75%
SUPR	74 Outperform	£1.03B	17.33	5.54%	7.70%	7.57%	―
CREI	72 Outperform	£414.09M	3.34	11.71%	7.17%	1.60%	211.81%
NRR	71 Outperform	£325.14M	5.78	6.35%	9.66%	84.02%	53.97%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PCTN	60 Neutral	£412.65M	6.81	7.51%	5.15%	-3.98%	412.08%
TOWN	46 Neutral	£47.77M	-16.58	-2.97%	3.94%	16.08%	56.94%

Supermarket Income REIT Plc Corporate Events

Supermarket Income REIT Chair Increases Stake with £95,795 Share Purchase

Supermarket Income REIT plc has disclosed that its non-executive chair, Nick Hewson, has purchased 115,000 ordinary shares in the company on the London Stock Exchange at a total value of £95,795. Following this transaction, Hewson now holds or has an interest in 1,631,609 ordinary shares, further aligning his financial interests with those of other shareholders.

The purchase, notified under UK market abuse regulations governing dealings by persons discharging managerial responsibilities, signals continued insider confidence in the company’s prospects and income-focused supermarket property strategy. Such transactions are closely watched by investors as potential indicators of management’s view on valuation and future performance, particularly in a specialist real estate segment tied to resilient grocery demand.

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.

Supermarket Income REIT Director Increases Shareholding with March Purchase

Supermarket Income REIT Plc reported that non-executive director Sapna Shah purchased 17,900 ordinary shares on 11 March 2026 on the London Stock Exchange. The shares were acquired at a price of £0.837959 per share, taking her total holding or interest in the company to 200,707 ordinary shares.

The transaction, disclosed under UK Market Abuse Regulation rules, signals additional personal financial commitment by a board member to the company. Such insider purchases are often monitored by investors as a potential indicator of confidence in the REIT’s strategy and future performance, although no further commentary on the rationale was provided.

The most recent analyst rating on (GB:SUPR) stock is a Hold 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 redeploys JV capital and sets 2% dividend growth target from FY27

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.

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.