Supermarket Income REIT (SUPR) H1 2026 earnings summary

Executive summary

• Achieved significant strategic milestones, including internalising management, reducing overhead costs by 32%, and expanding the team, supporting long-term growth and shareholder alignment.

• Delivered strong portfolio growth and operational efficiencies, with a focus on grocery real estate and mission-critical assets, and a resilient, inflation-linked portfolio.

• Successfully redeployed JV proceeds into £398 million of earnings-accretive acquisitions at a 6.5% net initial yield, maintaining high-quality, inflation-linked income streams.

• Upgraded dividend guidance to a minimum 2% annual uplift from FY27 onwards, reflecting confidence in future earnings growth.

• Portfolio value increased to £2.1 billion, up 20% since June 2025, with a 1.3% like-for-like valuation growth over six months.

Financial highlights

• Net rental income was £57 million, down 2% year-over-year, mainly due to timing gaps in JV proceeds and redeployment.

• EPRA cost ratio improved to 9.2%, a 440 basis point reduction, with over £2 million in cost savings and a 32% reduction in overheads.

• Dividends paid were £0.031 per share, up 1% from the prior period; dividend cover at 88%.

• EPRA NTA per share rose to 87.5p, with a 4% total accounting return for H1.

• Loan to value increased to 45% as of December 2025, reflecting acquisition activity.

Outlook and guidance

• Ambition to double the portfolio size, supported by a £500 million near-term pipeline of high-quality grocery assets.

• Dividend guidance upgraded to a minimum 2% annual uplift from FY27 onwards, with a minimum target dividend of 6.18p for FY26.

• Targeting further cost ratio reductions below 9% for FY27, with operational levers to potentially reach 8%.

• Net debt/EBITDA expected to return to 7–8x within 12 months as new assets contribute income.

• Sustainable total accounting returns projected in the 8–10% range in a stable yield environment.