Supermarket Income REIT (SUPR) H2 2025 earnings summary

Executive summary

• Achieved a transformational year with six major strategic milestones, including lease renewals above ERV, internalisation, a £403m JV, debut bond issuance, capital recycling, and a secondary listing.

• Operates in a defensive, non-discretionary grocery sector with resilient income, long WAULT, and strong tenants, providing stable, predictable returns.

• Portfolio comprises mission-critical, last-mile omnichannel fulfillment hubs, with 100% occupancy and rent collection.

Financial highlights

• Net rental income rose 7.3% year-on-year to £115m, including JV rents and a 3.4% average rental uplift.

• EPRA cost ratio reduced to 13%, targeting sub-9% in the near term.

• Declared dividends of £0.0612, up 1%, with 98% dividend cover.

• Portfolio valuation increased 1.9% like-for-like to £1.6bn; EPRA NTA at £1.81 per share, broadly flat.

• Total accounting return of 7.2%, underpinned by secure, investment-grade income.

Outlook and guidance

• Positioned for growth with £315m liquidity headroom, a cost-efficient platform, and a strong acquisition pipeline.

• Targeting a fully covered and growing dividend by year-end, aiming to close the NAV discount.

• Expects yields to have peaked, with future NAV growth anticipated as market competition increases.