Supermarket Income REIT plc (LON:SUPR, JSE: SRI), the leading grocery real estate business that invests in high-quality, inflation-linked, grocery assets, has reported its audited results for the year ended 30 June 2026.
• Continued growth in the resilient, non-discretionary grocery sector provides shareholders with a sustainable and attractive dividend yield
• Acquired £454 million of accretive properties in the year, diversifying the portfolio and scaling the JV with Blue Owl to £855 million
• Delivering value for shareholders with an EPRA cost ratio of 9.2% and targeting sustainable minimum dividend growth of 2% per annum from FY27
• Total shareholder return of 27.5% since internalisation
• Well-positioned for future growth, leveraging deep sector knowledge and relationships to execute on a pipeline of grocery property opportunities
FINANCIAL HIGHLIGHTS
| Year ended30-June-26 | Year ended30-June-25 | Change in Year | |
| EPRA earnings per share[1] | 5.7 pence | 6.0 pence | -4.1% |
| IFRS earnings per share | 6.9 pence | 4.9 pence | +39.4% |
| Dividend per share declared | 6.2 pence | 6.1 pence | +1.0% |
| Dividend cover1,[2] | 93% | 98% | -5.0ppts |
| EPRA cost ratio1 | 9.2% | 13.0% | -3.8ppts |
| 30-June-26 | 30-June-25 | Change in Year | |
| Portfolio valuation1,[3] | £2,010m | £1,625m | +23.7% |
| Portfolio net initial yield1,3 | 6.0% | 5.9% | +0.1ppts |
| EPRA NTA per share1 | 87.5 pence | 87.1 pence | +0.4% |
| IFRS NAV per share (diluted) | 89.2 pence | 88.4 pence | +0.9% |
| Total accounting return | 7.5% | 7.2% | +0.3ppts |
| Loan to value1,3 | 43.9% | 31.1% | +12.8ppts |
Rob Abraham, CEO of Supermarket Income REIT plc, commented:
“Over the past 18 months, we have transformed SUPR into a more efficient, scalable platform that is fully aligned with our shareholders and built to achieve long-term sustainable growth. In the year, we acquired £454 million of earnings enhancing assets, further diversified our portfolio, achieved one of the lowest EPRA cost ratios in the sector and introduced a minimum dividend growth target of 2% per annum from FY27.”
“Since year-end, we have continued to execute our strategy at pace. Following our successful equity raise in July 2026; we have already made £222 million of accretive acquisitions and have ambitions to grow the portfolio to £4 billion and beyond. The fundamentals of the grocery market remain compelling and, as the leading landlord in the sector, we believe we are best placed to deliver on our clear strategy and the significant opportunities that exist.”
Continued strategic progress to create an efficient and scalable growth platform to deliver shareholder returns
· Grew the Company’s real estate portfolio from £1.6 billion as at 30 June 2025 to £2.0 billion as at 30 June 2026, including expanding the joint venture with funds managed by Blue Owl Capital (the “JV”) to £855 million from £403 million at inception
· The reduction in earnings primarily reflects the timing of the redeployment of proceeds received following completion of the JV, together with the one-off increase in interest costs associated with our proactive decision to refinance and extend the term of our debt
· Acquired £454 million of assets during the period to support increases in future dividends, including:
o 10 high-performing Asda omnichannel supermarkets through the JV
o Further expansion into France with 20 additional Carrefour supermarkets
o Diversification into convenience with 10 Sainsbury’s foodstores
o Nine high-quality foodstores through secondary market acquisitions
· Portfolio valuation increased by 2.5% on a like-for-like basis vs. MSCI All Property Capital Growth Index which was up 0.1%
· Post year-end renewed two large format store leases, resulting in improved terms and extended duration of income
· Continued to reduce the Company’s operational costs achieving one of the lowest EPRA cost ratios in the sector of 9.2%, and on track to achieve below 9% in the near-term
· Targeting minimum dividend growth of 2% per annum from FY27
Delivering on ambitions to grow the portfolio
· Completed a £100 million equity raise in July 2026, which together with leverage, has funded £222 million of grocery acquisitions
· These funds have been fully deployed post year-end into nine grocery assets[4], at an average net initial yield of 6.6%[5]:
o Acquired five strong trading foodstores
o Further diversification with first acquisition of a grocery distribution centre, let to Sainsbury’s
o Exchanged contracts to acquire an attractive portfolio of three supermarkets for £118 million
Proactively strengthening the balance sheet
· Fitch BBB+ investment grade rating reaffirmed providing access to attractively priced long-dated debt
· Debut £250 million unsecured bond issuance in July 2025 with a six-year duration and a fixed interest coupon of 5.125%
· £445 million debt refinancing in July 2026, delivering lower borrowing costs and increasing average debt maturity
· LTV of 43.9% and a Net Debt / EBITDA of 7.8x for the 12 months to 30 June 2026
Operating in a growing and resilient, non-discretionary sector
· Grocery spend reached £256 billion in 2025[6]
· Demonstrating volume growth, with grocery sales increasing by 3.2% in the 12 months to June 2026[7], ahead of food inflation at 1.7% for the same period[8]
· Mission critical omnichannel stores are capturing double digit growth in the online market, which now accounts for 12.6% of total grocery market[9]
Progress on ESG initiatives
· Became an accredited Living Wage Employer, certified by the Living Wage Foundation
· Joined the UN Global Compact, reflecting the Company’s commitment to a principles-based approach to business
· Achieved a ‘Prime’ Corporate ESG performance rating by ISS STOXX and a second consecutive European Public Real Estate Association (“EPRA”) Sustainability Best Practices Recommendations (“sBPR”) Gold Award for sustainability reporting
Diverse pipeline of opportunities to assist in delivering future growth ambitions
· Actionable pipeline of over £500 million high-quality grocery assets
· Disciplined approach to capital allocation focused on attractive risk-adjusted returns and sustainable earnings growth for shareholders
· With its established position in UK grocery real estate, specialist market knowledge and unique sector relationships, SUPR is well-positioned to deliver its growth plans
[1] The alternative performance measures used by the Group have been defined and reconciled to the IFRS financial statements within the Annual Report
[2] Calculated as EPRA earnings divided by dividend paid in the year
[3] Including share of joint venture portfolio and the fair value of financial assets held at amortised cost
[4] Including five assets for which the Company has exchanged contracts to acquire
[5] Based on respective transaction costs
[6] IGD: UK grocery market value
[7] Kantar: UK grocery market sales growth for the 52 weeks to 14 June 2026
[8] CPIH food and non-alcoholic beverages inflation rate for the 12 months to June 2026
[9] Kantar: UK grocery market online share for the 12 weeks to 14 June 2026
[10] Based on a share price of 65.5p as at 24 January 2025
[11] Total shareholder return from 26 March 2025 to 30 June 2026
[12] Tesco Preliminary Results 2025/26 published 16 April 2026.
