Supermarket Income REIT Plc (SUPR) AI Stock Analysis

• Market Cap: £968.33M
• Dividend Yield: 7.8%
• Average Volume (3M): 2.91M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.68
• 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: 1,246,236,200
• 10 Day Avg. Volume: 3,449,434
• 30 Day Avg. Volume: 2,907,875
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £79.00
• Price Target Upside: 0.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: 83.00p ▲(5.73% Upside)

Supermarket Income REIT Plc's overall stock score is driven by its stable financial performance and attractive valuation. The company's strong profitability margins and solid balance sheet are significant strengths. However, the technical analysis indicates a bearish trend, which slightly offsets the positive valuation aspects. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Stable Rental Income

Supermarket Income REIT Plc benefits from stable and predictable rental income due to long-term leases with leading grocery retailers, providing a reliable revenue stream that is resilient to economic downturns.

Strong Profitability Margins

High gross profit margins indicate effective cost management and operational efficiency, contributing to the company's ability to sustain profitability over the long term.

Solid Balance Sheet

A solid balance sheet with moderate leverage and a strong equity base provides financial stability and flexibility, supporting long-term growth and resilience against economic fluctuations.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth may indicate challenges in maintaining market momentum and could impact future profitability if not addressed through strategic initiatives.

Decrease in Free Cash Flow Growth

A reduction in free cash flow growth could constrain the company's ability to invest in new opportunities or return capital to shareholders, potentially affecting long-term growth prospects.

Fluctuating Net Profit Margin

While the net profit margin has improved, its previous volatility suggests potential instability in profitability, which could pose risks if underlying issues are not resolved.

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. Revenue growth has been challenging, but 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: 78.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 78.5 is above the 20-day moving average (MA) of 78.13, below the 50-day MA of 78.95, and above the 200-day MA of 74.91, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 50.56 is Neutral, neither overbought nor oversold. The STOCH value of 53.67 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	79 Outperform	£3.60B	8.47	9.42%	5.53%	35.06%	127.62%
WHR	77 Outperform	£481.79M	11.55	7.68%	5.66%	1.73%	21.53%
LMP	74 Outperform	£4.27B	10.73	8.66%	6.76%	122.74%	60.58%
SHED	73 Outperform	―	―	―	―	4.41%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
SUPR	64 Neutral	£968.33M	15.73	5.54%	7.80%	7.57%	―
ASLI	52 Neutral	£137.46M	19.85	2.31%	56.46%	0.54%	―

Supermarket Income REIT Plc Corporate Events

Supermarket Income REIT Secures £90 Million Refinancing Deal

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.

Supermarket Income REIT Secures £90 Million Refinancing with Barclays

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.

Supermarket Income REIT Forms Strategic JV with Blue Owl Capital

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.

Supermarket Income REIT Declares Interim Dividend, Suspends Scrip Option

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.

Supermarket Income REIT Completes Management Internalisation

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.

Supermarket Income REIT PLC Adjusts Voting Rights Structure

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.

Supermarket Income REIT Approves Key Resolutions at General Meeting

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.

Supermarket Income REIT Sees Change in Major Holdings by Ameriprise Financial

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.

Supermarket Income REIT Reports Strong Interim Results and Strategic Progress

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.

Supermarket Income REIT to Internalize Management for Strategic Growth

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.

Supermarket Income REIT to Announce Half-Year Results in March

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.

Supermarket Income REIT Advances Portfolio Initiatives with Strategic Sales and Acquisitions

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.

BlackRock Crosses 5% Threshold in Supermarket Income REIT

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.