Supermarket Income REIT (SUPR) H2 2022 earnings summary

Executive summary

• Achieved strong growth with total assets reaching £1.8bn as of 30 June 2022, a 39% year-over-year increase.

• Net rental income rose 50% year-over-year to £72.1m, with significant contributions from joint ventures.

• Portfolio expanded to 49 stores, with a current rent roll of £90.9m and 81% of rents inflation-linked.

• Included in FTSE 250 and EPRA indices, reflecting increased market recognition.

• 100% of drawn debt is hedged or fixed rate, supporting financial stability.

Financial highlights

• EPRA NTA per share increased 6.5% year-over-year to 115p.

• FY22 total shareholder return was 7%, with a dividend cover of 1.08x.

• Adjusted EPRA earnings rose 56% to £57.4m, and EPRA EPS increased to 5.9p from 5.6p.

• Net LTV reduced to 19.0% from 34.0% year-over-year.

• Operating profit increased to £123.3m, and profit for the year reached £110.3m.

Outlook and guidance

• Targeting a FY23 dividend of 6p per share.

• Sector outlook remains positive, with structurally supported, inflation-linked rental growth and a strong, flexible balance sheet.

• Focus on opportunistic value-add transactions and future-proofed, omnichannel stores.