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Supermarket Income REIT Plc
(LSE:SUPR)
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Rating:71Outperform
Price Target:
91.00 p
▲(6.50% Upside)
Action:Reiterated
Date:05/11/26
The score is driven by very strong valuation (low P/E and high dividend yield) alongside steady overall financial strength (solid margins and balance sheet), partially offset by declining revenue/FCF trends and a neutral technical picture. Earnings call adds support via upgraded dividend guidance and cost discipline, but leverage and near-term EPS headwinds cap the upside.
Positive Factors
Operational resilience & tenant quality
Supermarket Income REIT’s grocery-led portfolio delivers durable cashflows: full occupancy, reliable rent collection and frequent rent reviews produce steady contracted income. High grocery exposure and investment-grade tenants reduce cyclicality and support long-run dividend sustainability.
Negative Factors
Elevated leverage and near-term refinancing
High pro‑forma leverage and an imminent refinancing event increase execution risk and interest‑rate exposure. Sustained net debt/EBITDA near 8x constrains financial flexibility, raises refinancing cost sensitivity and limits capacity for opportunistic acquisitions if markets tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
Operational resilience & tenant quality
Supermarket Income REIT’s grocery-led portfolio delivers durable cashflows: full occupancy, reliable rent collection and frequent rent reviews produce steady contracted income. High grocery exposure and investment-grade tenants reduce cyclicality and support long-run dividend sustainability.
Read all positive factors
Supermarket Income REIT Plc (SUPR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.14B
Dividend Yield7.37%
Average Volume (3M)2.85M
Price to Earnings (P/E)17.0
Beta (1Y)0.74
Revenue Growth-4.33%
EPS Growth-11.83%
CountryUK
Employees18
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.05
Shares Outstanding1,366,721,100
10 Day Avg. Volume2,223,132
30 Day Avg. Volume2,853,940
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.96
Price to Sales (P/S)9.22
P/FCF Ratio16.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£94.00Price Target Upside10.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.06
Revenue Forecast (FY)£126.43M
Supermarket Income REIT Plc Business Overview & Revenue Model
Company Description
Supermarket Income REIT plc (LSE: SUPR) is a property investment vehicle primarily focused on acquiring food retail assets throughout the United Kingdom. These properties are considered crucial to the nation's fundamental food supply infrastructur...
How the Company Makes Money
SUPR makes money primarily by earning rental income from tenants that operate supermarkets and other grocery-led retail assets within its property portfolio. Its key revenue stream is contracted rent under long-term leases, often with contractual ...
Supermarket Income REIT Plc Earnings Call Summary
Earnings Call Date:Mar 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 16, 2026
Earnings Call Sentiment Positive
The call highlights substantial strategic progress: rapid scaling of a sector-focused joint venture, meaningful portfolio growth to GBP 2bn, material cost reductions (EPRA cost ratio improved to 9.2% and overheads down 32%), accretive acquisitions deployed at attractive yields, and upgraded dividend guidance to a minimum 2% uplift from FY27. Operational performance remained robust with 100% occupancy, strong rent collection, and rent review uplifts. Short-term challenges include a 2% decline in net rental income, EPRA EPS decline to 2.7p, higher leverage (43%) and pro forma net debt-to-EBITDA of 8.2x, acquisition-related costs and some transitional costs from internalization, and conservative valuations limiting immediate NTA upside. On balance, the positives—particularly disciplined capital deployment, cost efficiency gains, JV monetization and clear pipeline—outweigh the manageable near-term headwinds.Positive Updates
Dividend Guidance Upgraded
Minimum dividend uplift increased to 2% per annum from FY27 onwards, reflecting confidence in cash generation and capital deployment.
Negative Updates
Net Rental Income and EPS Decline
Net rental income fell to GBP 57 million, down 2% (in line with expectations); EPRA earnings per share decreased to 2.7p from 3.0p in the prior period.
Read all updates
Q2-2026 Updates
Positive
Negative
Dividend Guidance Upgraded
Minimum dividend uplift increased to 2% per annum from FY27 onwards, reflecting confidence in cash generation and capital deployment.
Read all positive updates
Company Guidance
The key guidance was an upgraded minimum dividend uplift of 2% per annum from FY‑27, supported by targets to drive the EPRA cost ratio below 9% next year (current 9.2%, a 440bp improvement) and longer‑term operational leverage toward c.8%; management expects pro‑forma net debt/EBITDA to move from c.8.2x to the lower end of a 7x–8x range within 12 months while maintaining LTV around current 43% and strong covenant headroom. Balance sheet and funding guidance included a weighted average cost of debt of 4.8%, 92% of drawn debt fixed or hedged (moving toward 100%), one drawn facility maturing in 12 months that will be refinanced, and diversified longer‑dated funding (debut bonds and U.S. private placement with a blended tenor just over six years at ~5%). Portfolio and pipeline guidance comprised ambitions to double the portfolio (current value GBP 2.0bn, up 20% since June ’25) with a near‑term pipeline >GBP 500m, having deployed GBP 398m at a 6.5% net initial yield, scaled the JV to GBP 845m (23 stores at c.6.5% NIY) and completed accretive sale‑and‑leasebacks (e.g. 10 stores at 7.4% NIY, Carrefour tranche EUR 123m at 6.6% NIY). Operationally they reiterated targets of high occupancy and rent collection (100%), a gross‑to‑net rent ratio of 99.5%, rental momentum from 19 rent reviews averaging a 3.8% uplift, around 90% grocery income, c.80% inflation‑linked rents (with c.76% of income investment‑grade), and financial metrics of EPRA earnings per share 2.7p, EPRA NTA 87.5p, dividends paid 3.1p, and a H1 total accounting return of 4%.Supermarket Income REIT Plc Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 111.66M | 114.77M | 107.23M | 124.58M | 115.41M | 48.99M |
| Gross Profit | 106.73M | 114.77M | 107.23M | 107.77M | 62.71M | 41.69M |
| EBITDA | 97.29M | 98.77M | 101.49M | 112.66M | 57.88M | 37.97M |
| Net Income | 61.32M | 61.53M | -21.18M | -144.87M | 110.30M | 81.96M |
Balance Sheet | ||||||
| Total Assets | 2.04B | 1.75B | 1.86B | 1.93B | 1.81B | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 48.04M | 95.28M | 38.69M | 37.48M | 51.20M | 19.58M |
| Total Debt | 885.22M | 603.60M | 694.17M | 667.47M | 348.55M | 409.68M |
| Total Liabilities | 936.20M | 647.52M | 741.95M | 716.00M | 375.58M | 431.32M |
| Stockholders Equity | 1.10B | 1.10B | 1.12B | 1.22B | 1.43B | 871.31M |
Cash Flow | ||||||
| Free Cash Flow | 46.90M | 66.10M | 92.06M | 335.60M | 53.16M | 37.14M |
| Operating Cash Flow | 46.93M | 66.13M | 92.06M | 61.91M | 53.17M | 37.23M |
| Investing Cash Flow | -92.40M | 180.58M | -18.67M | -273.69M | -402.85M | -629.55M |
| Financing Cash Flow | 52.88M | -190.12M | -72.18M | 175.65M | 371.46M | 585.97M |
Supermarket Income REIT Plc Technical Analysis
Neutral
85.45
Price Trends
85.69
Negative
83.62
Positive
81.32
Positive
Market Momentum
-0.44
Positive
42.32
Neutral
22.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SUPR, the sentiment is Neutral. The current price of 85.45 is above the 20-day moving average (MA) of 84.92, below the 50-day MA of 85.69, and above the 200-day MA of 81.32, indicating a neutral trend. The MACD of -0.44 indicates Positive momentum. The RSI at 42.32 is Neutral, neither overbought nor oversold. The STOCH value of 22.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SUPR.
Supermarket Income REIT Plc Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £404.74M | 7.89 | 10.24% | 7.17% | 9.07% | 21.13% | |
73 Outperform | £1.51B | 7.53 | 12.69% | 5.84% | 12.54% | 29.71% | |
72 Outperform | £343.35M | 11.14 | 6.98% | 8.49% | 44.75% | 13.02% | |
71 Outperform | £1.14B | 17.02 | 5.56% | 7.37% | -4.33% | -11.83% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | £367.71M | 14.46 | 4.93% | 4.88% | -5.46% | -27.41% | |
55 Neutral | £54.09M | -10.30 | -4.75% | 4.00% | 4.77% | -1540.79% |
* Real Estate Sector Average
GB:SUPR
Supermarket Income REIT Plc
83.00
10.26
14.10%
GB:CREI
Custodian REIT
83.70
9.95
13.49%
GB:NRR
NewRiver REIT
78.80
15.18
23.85%
GB:TOWN
Town Centre Securities
130.00
8.03
6.58%
GB:SRE
Sirius Real Estate
94.40
2.90
3.17%
GB:PCTN
Picton Property Income
73.00
2.66
3.78%
Supermarket Income REIT Plc Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Supermarket Income REIT Directors Boost Stakes in Post-Issue Share Purchases
Positive
Jul 17, 2026
Supermarket Income REIT Plc has disclosed that six board members participated in its recent equity issuance, acquiring new ordinary shares at £0.83 each on the London Stock Exchange. Executive directors Robert Abraham and Michael Perkins, non...
Business Operations and StrategyPrivate Placements and FinancingShareholder Meetings
Supermarket Income REIT Sets General Meeting to Approve New Share Issue
Neutral
Jul 16, 2026
Supermarket Income REIT has published a shareholder circular and notice of general meeting detailing its proposed share issue, with the documents now available on the company’s website and being posted to investors. The issue remains conditi...
Business Operations and StrategyPrivate Placements and FinancingShareholder Meetings
Supermarket Income REIT Raises £100m to Fund Nine-Asset Grocery Property Pipeline
Positive
Jul 15, 2026
Supermarket Income REIT has raised £100 million through an issue of 120,481,928 new ordinary shares at 83 pence each, representing about 10 per cent of its existing share capital. The raise was executed via a UK placing, a South African placi...
Business Operations and StrategyM&A Transactions
Supermarket Income REIT buys three UK grocery stores for £118m
Positive
Jul 15, 2026
Supermarket Income REIT has agreed to acquire a portfolio of three established supermarkets in Manchester, Edinburgh and Halifax for a total consideration of £118 million, at an average net initial yield of 6.9%, with completion expected in S...
Business Operations and StrategyPrivate Placements and Financing
Supermarket Income REIT launches retail share offer to fund new supermarket acquisitions
Positive
Jul 15, 2026
Supermarket Income REIT has launched a conditional retail offer of new ordinary shares via the RetailBook platform, open to eligible UK-based retail investors alongside an institutional UK placing and a South African placing. The offer, with a min...
Business Operations and StrategyPrivate Placements and Financing
Supermarket Income REIT to Raise £100m for Earnings-Accretive Grocery Acquisitions
Positive
Jul 15, 2026
Supermarket Income REIT plans to raise about £100 million through a new share issue, combining an institutional placing, a South African placing for qualifying investors, and a UK retail offer to fund a £216 million pipeline of grocery a...
Business Operations and StrategyDividends
Supermarket Income REIT Declares Fourth Quarterly Cash Dividend
Positive
Jul 2, 2026
Supermarket Income REIT plc has declared an interim fourth quarterly dividend of 1.545 pence per ordinary share for the period from 1 April to 30 June 2026. The dividend, classified as a Property Income Distribution from its tax-exempt property re...
Business Operations and StrategyPrivate Placements and Financing
Supermarket Income REIT Secures £445m Refinancing to Extend Debt Maturities
Positive
Jul 2, 2026
Supermarket Income REIT plc has completed a £445 million debt refinancing package that lowers its borrowing costs and extends the maturity profile of its loans. The new financing consists of a £375 million syndicated facility and a £...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.