Supermarket Income REIT (SUPR) H2 2024 earnings summary

Executive summary

• Achieved strong operational performance with 100% occupancy, >99% gross to net margin, and accretive acquisitions in the U.K. and France, driving earnings growth for shareholders.

• Core tenants outperformed the underlying grocery market, with omni-channel stores capturing a significant share of growth.

• Shifted from a cautious strategy to selective acquisitions as market confidence improved, including the first strategic transaction outside the U.K.

• Focused on sustainability, with a Net Zero by 2050 commitment, science-based emissions targets, and significant tenant investments in energy efficiency.

Financial highlights

• Net rental income reached £107.2m, up 13% year-on-year, with adjusted EPS at 6.1p per share, a 4.4% increase, and a fully covered dividend of 6.1p per share, up 1% year-on-year.

• Portfolio independently valued at £1.8bn, up 5% over 12 months; EPRA NTA per share at 87p, down 6% from June 2023.

• Loan-to-value at 37%, within the long-term target range of 30%-40%; net debt/EBITDA at 7.1x.

• EPRA cost ratio improved to 14.7%, among the lowest in the sector, with further reductions targeted.

• Fitch reaffirmed BBB+ credit rating with stable outlook.

Outlook and guidance

• Confident about future earnings growth, supported by inflation-linked rental uplifts, accretive acquisitions, and positive macro backdrop.

• Market rental growth and continued capital discipline expected to drive further upside.

• No major debt refinancings until FY 2026; hedges in place until January 2026.