Supermarket Income REIT Plc (SUPR) AI Stock Analysis

• Market Cap: £1.03B
• Dividend Yield: 7.32%
• Average Volume (3M): 2.91M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.89
• Revenue Growth: -8.26%
• EPS Growth: 1700.00%
• Country: UK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Retail
• EPS (TTM): 0.06
• Shares Outstanding: 1,246,236,200
• 10 Day Avg. Volume: 2,845,322
• 30 Day Avg. Volume: 2,913,858
• PEG Ratio: 0.03
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.43
• 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: £84.67
• Price Target Upside: 1.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: ―

Supermarket Income REIT Plc scores strongly due to its attractive valuation and positive technical indicators, despite challenges in profitability. Strategic corporate developments, such as refinancing and a joint venture, bolster its financial flexibility and growth potential. While profitability issues exist, the company's solid balance sheet and strategic initiatives position it well for future growth, making it a compelling option for income-focused investors.

Positive Factors

Dividends

The company's prospective dividend yield of over 8% is well ahead of the REIT average of 5%, representing value and supporting a Buy rating.

Management Changes

The internalisation of the management function is expected to significantly reduce running costs and align the company's structure more closely with shareholders.

Negative Factors

Interest Rates

Interest rate expectations have risen, making future debt refinancing more expensive as the marginal cost of borrowing is approximately 40bps higher than previous forecasts.

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 makes money by leasing its portfolio of supermarket properties to well-established UK supermarket operators. The company's revenue model is primarily based on collecting rental income from long-term lease agreements with these tenants. The lease agreements often include upward-only rent reviews, providing predictable and inflation-protected cash flows. SUPR's focus on omnichannel supermarkets, which facilitate both physical shopping and online deliveries, enhances the resilience and growth potential of its income streams. The company benefits from strong tenant covenants and high occupancy rates, ensuring a consistent and reliable revenue base.

Supermarket Income REIT Plc Financial Statement Overview

Summary

Supermarket Income REIT Plc demonstrates stable revenue generation but struggles with profitability, as indicated by negative net income in recent years. The balance sheet is solid with a strong equity position, though increasing leverage requires monitoring. Operating cash flow is robust, but inconsistencies in free cash flow growth suggest further analysis is needed. Overall, the company possesses potential for growth if profitability issues are addressed.

Income Statement

Supermarket Income REIT Plc has shown a fluctuating revenue trend, with a recent decline in total revenue from 2023 to 2024. The gross profit margin remains stable, but the company is struggling with profitability, as indicated by the negative net income in recent years. EBIT margin has decreased significantly, reflecting operational challenges. The entity needs to enhance its cost management to improve net profit margins.

Balance Sheet

The balance sheet reveals a reasonable debt-to-equity ratio, although it has increased over the years. The equity ratio indicates a strong equity position relative to assets, which is a positive sign. However, the declining return on equity (ROE) highlights issues with generating adequate returns from equity investments.

Cash Flow

The cash flow statement shows healthy operating cash flow, with a positive trajectory in free cash flow. However, the free cash flow growth rate has been inconsistent. The operating cash flow to net income ratio is favorable, indicating efficient cash conversion from operations, despite the negative net income figures.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
117.11M	107.23M	124.58M	74.45M	48.99M	26.35M
	Gross Profit
99.45M	-12.36M	107.77M	62.71M	41.69M	23.10M
	EBIT
81.11M	26.19M	112.66M	57.88M	37.97M	20.87M
	EBITDA
38.31M	0.00	0.00	0.00	37.97M	20.87M
	Net Income Common Stockholders
69.57M	-21.18M	-144.87M	110.30M	81.96M	32.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.65M	38.69M	37.48M	51.48M	19.82M	20.35M
	Total Assets
504.22M	1.86B	1.93B	1.81B	1.30B	617.55M
	Total Debt
166.37M	694.17M	667.47M	348.55M	409.68M	126.79M
	Net Debt
158.71M	655.48M	629.98M	297.35M	390.11M	106.44M
	Total Liabilities
176.23M	741.95M	716.00M	375.58M	431.32M	140.38M
	Stockholders Equity
327.99M	1.12B	1.22B	1.43B	871.31M	477.16M
Cash Flow		Free Cash Flow
76.34M	92.06M	335.60M	53.16M	37.14M	22.83M
	Operating Cash Flow
76.34M	92.06M	61.91M	53.17M	37.23M	22.83M
	Investing Cash Flow
-166.34M	-18.67M	-273.69M	-402.85M	-629.55M	-209.90M
	Financing Cash Flow
111.53M	-72.18M	198.06M	381.30M	591.55M	197.52M

Supermarket Income REIT Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 83.2 is above the 20-day moving average (MA) of 80.83, above the 50-day MA of 78.10, and above the 200-day MA of 70.84, indicating a bullish trend. The MACD of 1.40 indicates Negative momentum. The RSI at 71.53 is Negative, neither overbought nor oversold. The STOCH value of 84.73 is Negative, 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
LMP	82 Outperform	£4.10B	11.58	8.66%	6.02%	95.26%	―
BBOX	81 Outperform	£3.69B	7.56	11.28%	5.20%	38.97%	417.46%
SUPR	80 Outperform	£1.03B	14.75	6.20%	7.32%	-8.26%	1700.00%
WHR	77 Outperform	£453.75M	12.12	6.91%	6.00%	0.17%	―
SHED	73 Outperform	£709.72M	39.74	2.39%	4.86%	4.41%	―
Sector *	61 Neutral	$2.85B	10.96	0.41%	8438.88%	5.73%	-21.25%
ASLI	53 Neutral	£246.48M	96.45	0.71%	6.08%	-7.28%	―

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.