Supermarket Income REIT Plc (GB:SUPR)
LSE:SUPR
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Supermarket Income REIT Plc
(LSE:SUPR)
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Rating:71Outperform
Price Target:
91.00 p
▲(5.88% Upside)
Action:Reiterated
Date:05/11/26
The score is driven by very strong valuation (low P/E and high dividend yield) alongside steady overall financial strength (solid margins and balance sheet), partially offset by declining revenue/FCF trends and a neutral technical picture. Earnings call adds support via upgraded dividend guidance and cost discipline, but leverage and near-term EPS headwinds cap the upside.
Positive Factors
Operational resilience & tenant quality
Supermarket Income REIT’s grocery-led portfolio delivers durable cashflows: full occupancy, reliable rent collection and frequent rent reviews produce steady contracted income. High grocery exposure and investment-grade tenants reduce cyclicality and support long-run dividend sustainability.
Negative Factors
Elevated leverage and near-term refinancing
High pro‑forma leverage and an imminent refinancing event increase execution risk and interest‑rate exposure. Sustained net debt/EBITDA near 8x constrains financial flexibility, raises refinancing cost sensitivity and limits capacity for opportunistic acquisitions if markets tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
Operational resilience & tenant quality
Supermarket Income REIT’s grocery-led portfolio delivers durable cashflows: full occupancy, reliable rent collection and frequent rent reviews produce steady contracted income. High grocery exposure and investment-grade tenants reduce cyclicality and support long-run dividend sustainability.
Read all positive factors
Supermarket Income REIT Plc (SUPR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.03B
Dividend Yield7.7%
Average Volume (3M)2.94M
Price to Earnings (P/E)7.0
Beta (1Y)0.70
Revenue Growth-4.33%
EPS Growth-11.83%
CountryUK
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.05
Shares Outstanding1,246,239,100
10 Day Avg. Volume2,892,521
30 Day Avg. Volume2,940,881
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.97
Price to Sales (P/S)9.29
P/FCF Ratio16.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£90.67Price Target Upside5.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.06
Revenue Forecast (FY)£107.19M
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 omnichan...
How the Company Makes Money
SUPR makes money primarily from rental income generated by leasing its supermarket properties to tenants. Its core revenue stream is contracted rent under long-term leases, which may include inflation-linked or periodic rent review mechanisms wher...
Supermarket Income REIT Plc Earnings Call Summary
Earnings Call Date:Mar 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 23, 2026
Earnings Call Sentiment Positive
The call highlights substantial strategic progress: rapid scaling of a sector-focused joint venture, meaningful portfolio growth to GBP 2bn, material cost reductions (EPRA cost ratio improved to 9.2% and overheads down 32%), accretive acquisitions deployed at attractive yields, and upgraded dividend guidance to a minimum 2% uplift from FY27. Operational performance remained robust with 100% occupancy, strong rent collection, and rent review uplifts. Short-term challenges include a 2% decline in net rental income, EPRA EPS decline to 2.7p, higher leverage (43%) and pro forma net debt-to-EBITDA of 8.2x, acquisition-related costs and some transitional costs from internalization, and conservative valuations limiting immediate NTA upside. On balance, the positives—particularly disciplined capital deployment, cost efficiency gains, JV monetization and clear pipeline—outweigh the manageable near-term headwinds.Positive Updates
Dividend Guidance Upgraded
Minimum dividend uplift increased to 2% per annum from FY27 onwards, reflecting confidence in cash generation and capital deployment.
Negative Updates
Net Rental Income and EPS Decline
Net rental income fell to GBP 57 million, down 2% (in line with expectations); EPRA earnings per share decreased to 2.7p from 3.0p in the prior period.
Read all updates
Q2-2026 Updates
Positive
Negative
Dividend Guidance Upgraded
Minimum dividend uplift increased to 2% per annum from FY27 onwards, reflecting confidence in cash generation and capital deployment.
Read all positive updates
Company Guidance
The key guidance was an upgraded minimum dividend uplift of 2% per annum from FY‑27, supported by targets to drive the EPRA cost ratio below 9% next year (current 9.2%, a 440bp improvement) and longer‑term operational leverage toward c.8%; management expects pro‑forma net debt/EBITDA to move from c.8.2x to the lower end of a 7x–8x range within 12 months while maintaining LTV around current 43% and strong covenant headroom. Balance sheet and funding guidance included a weighted average cost of debt of 4.8%, 92% of drawn debt fixed or hedged (moving toward 100%), one drawn facility maturing in 12 months that will be refinanced, and diversified longer‑dated funding (debut bonds and U.S. private placement with a blended tenor just over six years at ~5%). Portfolio and pipeline guidance comprised ambitions to double the portfolio (current value GBP 2.0bn, up 20% since June ’25) with a near‑term pipeline >GBP 500m, having deployed GBP 398m at a 6.5% net initial yield, scaled the JV to GBP 845m (23 stores at c.6.5% NIY) and completed accretive sale‑and‑leasebacks (e.g. 10 stores at 7.4% NIY, Carrefour tranche EUR 123m at 6.6% NIY). Operationally they reiterated targets of high occupancy and rent collection (100%), a gross‑to‑net rent ratio of 99.5%, rental momentum from 19 rent reviews averaging a 3.8% uplift, around 90% grocery income, c.80% inflation‑linked rents (with c.76% of income investment‑grade), and financial metrics of EPRA earnings per share 2.7p, EPRA NTA 87.5p, dividends paid 3.1p, and a H1 total accounting return of 4%.Supermarket Income REIT Plc Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| 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
Positive
85.95
Price Trends
81.04
Positive
81.67
Positive
78.74
Positive
Market Momentum
>-0.01
Positive
57.31
Neutral
39.12
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 85.95 is above the 20-day moving average (MA) of 81.80, above the 50-day MA of 81.04, and above the 200-day MA of 78.74, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 57.31 is Neutral, neither overbought nor oversold. The STOCH value of 39.12 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £1.58B | 4.93 | 12.27% | 5.71% | 4.79% | 37.75% | |
72 Outperform | £414.95M | 3.34 | 11.57% | 7.17% | 1.60% | 211.81% | |
71 Outperform | £1.03B | 6.99 | 5.56% | 7.70% | -4.33% | -11.83% | |
71 Outperform | £331.62M | 5.78 | 6.35% | 9.66% | 84.02% | 53.97% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | £374.35M | 6.81 | 7.51% | 5.15% | -3.98% | 412.08% | |
46 Neutral | £52.19M | -9.68 | -4.75% | 3.94% | 4.77% | -1540.79% |
* Real Estate Sector Average
GB:SUPR
Supermarket Income REIT Plc
82.95
8.92
12.05%
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12.60
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GB:NRR
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GB:TOWN
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-6.98%
GB:SRE
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GB:PCTN
Picton Property Income
73.30
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5.82%
Supermarket Income REIT Plc Corporate Events
Regulatory Filings and Compliance
Supermarket Income REIT Executive Director Increases Shareholding
Positive
Apr 10, 2026
Supermarket Income REIT Plc reported that executive director and PDMR Robert Abraham has acquired 30,342 ordinary shares in the company on the London Stock Exchange. Following this transaction, Abraham’s total holding or interest in the comp...
Business Operations and StrategyDividends
Supermarket Income REIT Declares Cash Interim Dividend for First Quarter 2026
Positive
Apr 9, 2026
Supermarket Income REIT plc has declared a third-quarter interim dividend of 1.545 pence per ordinary share for the period from 1 January to 31 March 2026. The cash-only dividend, classified as a Property Income Distribution from its tax-exempt pr...
Business Operations and StrategyRegulatory Filings and Compliance
Supermarket Income REIT Director Increases Stake with Share Purchase
Positive
Mar 23, 2026
Supermarket Income REIT plc has disclosed that non-executive director Sapna Shah purchased 47,380 ordinary shares in the company on 19 March 2026 on the London Stock Exchange. The transaction, executed at £0.837 per share for a total consider...
Business Operations and StrategyPrivate Placements and Financing
Supermarket Income REIT Secures Larger JV Loan to Refinance Debt
Positive
Mar 18, 2026
Supermarket Income REIT has expanded the secured term loan within its joint venture with funds managed by Blue Owl Capital, increasing the facility by £222 million to £437 million with a bank syndicate including Barclays, HSBC, ING, Lloy...
Regulatory Filings and Compliance
Supermarket Income REIT Director Increases Stake with Share Purchase
Positive
Mar 16, 2026
Supermarket Income REIT PLC reported that non-executive director Frances Davies purchased 30,000 ordinary shares in the company on 13 March 2026 on the London Stock Exchange. Following this transaction, which totaled approximately £25,132 at ...
Regulatory Filings and Compliance
Supermarket Income REIT Chair Increases Stake with £95,795 Share Purchase
Positive
Mar 13, 2026
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 o...
Regulatory Filings and Compliance
Supermarket Income REIT Director Increases Shareholding with March Purchase
Positive
Mar 12, 2026
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 o...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Supermarket Income REIT redeploys JV capital and sets 2% dividend growth target from FY27
Positive
Mar 11, 2026
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 ea...
Business Operations and StrategyFinancial Disclosures
Supermarket Income REIT Sets March Date for Half-Year Results and Investor Presentations
Neutral
Feb 25, 2026
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...
Business Operations and Strategy
Supermarket Income REIT Adds Peel Hunt as Joint Corporate Broker
Positive
Feb 19, 2026
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 Europ...
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.