Supermarket Income REIT Reports 27.5% Shareholder Return Amid Portfolio Growth

Supermarket Income REIT plc (LSE:SUPR) announced a total shareholder return of 27.5% since internalizing its management, according to its annual results for the year ended June 30, 2026. The real estate investment trust significantly expanded its holdings, with its portfolio valuation increasing to £2.0 billion from £1.6 billion in the prior year.

Portfolio Expansion and Financial Performance

The company's growth was fueled by £454 million in property acquisitions during the fiscal year. Notable additions included 10 Asda omnichannel supermarkets, 20 Carrefour supermarkets in France, and 10 Sainsbury’s convenience stores.

Despite the expansion, EPRA earnings per share (EPS) declined by 4.1% to 5.7 pence from 6.0 pence. The company attributed this decrease to the timing of redeploying proceeds from its joint venture with Blue Owl Capital and one-off interest costs related to debt refinancing. The board declared a dividend of 6.2 pence per share, an increase from 6.1 pence in the previous year.

Key financial metrics reported include:

• Net Initial Yield: 6.0%
• EPRA Cost Ratio: Improved to 9.2% from 13.0%
• Loan-to-Value (LTV) Ratio: Increased to 43.9% from 31.1%

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Capital Structure and Market Context

Supermarket Income REIT has been active in capital markets. In July 2025, it issued its first £250 million unsecured bond with a 5.125% fixed interest rate and a six-year term. Following the fiscal year's end, the company completed a £100 million equity raise in July 2026 and deployed those proceeds to acquire £222 million in additional grocery assets.

The company's expansion occurs as UK grocery sales grew 3.2% in the 12 months to June 2026, outpacing the 1.7% food inflation rate for the same period. Looking ahead, the company has set a minimum dividend growth target of 2% per annum beginning in fiscal year 2027.

Board Changes

The company also announced upcoming changes to its board. Vince Prior will step down following the annual general meeting after nine years of service. Chair Nick Hewson will extend his tenure for up to two years until the 2028 AGM, subject to annual shareholder approval.