Supermarket Income REIT (SUPR) H1 2025 earnings summary

Executive summary

• Strong operational performance and sector resilience, supported by key tenants Sainsbury's, Tesco, and Carrefour, with strategic initiatives focused on earnings growth, dividend cover, and closing the NAV discount.

• Net rental income rose 10% to £57.8m–£58m for the six months to December 2024, with adjusted EPS up 3% to 3.0p and dividend per share declared at 3.1p, fully covered.

• Proposed internalisation of management for £19.7m, expected to deliver at least £4m annual cost savings and improved shareholder alignment.

• Strategic capital recycling through disposals and acquisitions, including sale of Tesco Newmarket at a 7.4% premium and new investments in Sainsbury's Huddersfield and Carrefour stores.

• Completed secondary listing on the Johannesburg Stock Exchange, broadening investor base and increasing liquidity.

Financial highlights

• Net rental income for the period was £57.8m–£58m, up 10% year-over-year, with gross-to-net margin at 99.4%.

• Adjusted earnings per share rose 3% to 3.0p; dividends paid/declared at 3.1p per share, with cover at 0.99x.

• Portfolio independently valued at £1.83bn, up 0.5% like-for-like, with EPRA NTA per share at 88p.

• EPRA cost ratio improved to 13.6% (down from 15.1%), targeting below 9% post-internalisation.

• Loan-to-value at 38–39%, with 93% of debt fixed or hedged at 4% average cost and average debt maturity of 3.7 years.

Outlook and guidance

• Focus on delivering management internalisation, progressing strategic joint ventures, and capital recycling.

• Targeting EPRA cost ratio below 9% and further cost reductions at FY25 results.

• Plans to refinance debt facilities, extend maturity profile, and close the share price discount to NAV.

• On track to deliver full-year 2025 dividend target of 6.12p per share.