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Investing.com -- Supermarket Income REIT (LON:SUPR) swung to a profit in the year ended June 30, posting IFRS earnings per share of 4.9 pence compared with a loss of 1.7 pence a year earlier, the company said in its full-year results on Wednesday.
Net rental income rose 6% to £113.2 million from £107.2 million. EPRA earnings per share edged down to 6.0 pence from 6.1 pence.
The board declared a dividend of 6.12 pence per share, up from 6.06 pence, and set a minimum target of 6.18 pence for 2026 .
The property portfolio was valued at £1.63 billion at year-end, down 8% from £1.78 billion in 2024, though on a like-for-like basis valuations increased 1.9%.
The British property investment company reduced its loan-to-value ratio to 31% from 37%. During the year, it completed a £403 million joint venture with Blue Owl Capital, generating about £200 million in net proceeds, and sold a Tesco store in Newmarket for £63.5 million, 7.4% above its June 2024 book value.
Acquisitions included a Sainsbury’s store in Huddersfield for £49.7 million at a 7.6% net initial yield and nine Carrefour properties in France through a sale-and-leaseback for €36.7 million at a 6.8% yield.
After the reporting period, the company bought a Tesco store in Ashford for £54.1 million at a 7% yield and a Waitrose store in Anglesey for £4.8 million at a 6.1% yield.
Administrative expenses fell 5% to £14.5 million. The EPRA cost ratio improved to 13% from 14.7%, with further savings expected from the internalisation of management completed in March.
The company said the move is expected to deliver at least £4 million of annual cost savings. It also issued a £250 million sterling bond with a 5.125% coupon, fixing debt costs for six years.
Chief executive Robert Abraham said, “This has been a transformational year for SUPR which has positioned the Company to return to growth. The team has delivered shareholder value through a number of key strategic milestones, most notably the Internalisation which will deliver significant cost savings and provides greater alignment with shareholders.”
Supermarket Income REIT reported 100% occupancy and rent collection since its IPO. Its rent roll is anchored by Tesco and Sainsbury’s, which together account for 71%.
The group also completed a secondary listing on the Johannesburg Stock Exchange in December.
The company noted growth in the grocery market. UK grocery sales rose 5.4% year on year in July 2025 and are forecast to reach £259 billion for the year.
Tesco and Sainsbury’s held a combined 43% share of the market. In France, grocery sales are forecast to reach €329 billion in 2029, with Carrefour lifting its share to 21.5%.
Chair Nick Hewson said the year’s initiatives, including the joint venture and lease renewals, “have evidenced the affordability of rents across our high-performing omnichannel supermarket portfolio, supported our asset valuations, and demonstrated strong alignment with shareholder interests.”