Supermarket Income REIT Reports Portfolio Growth and Strengthened Financing
Supermarket Income REIT (SUPR.L) reported a rise in its gross asset value to £2.2 billion, driven by the acquisition of 140 fully occupied supermarkets with an average lease length of 11 years. The company completed £676 million worth of accretive acquisitions and aims to double its portfolio size to £4 billion over time. Approximately 83% of income is inflation-linked, and about 75% comes from investment-grade tenants. The REIT also strengthened its financing platform with around £1 billion in debt financings, including a public bond offering that extended the average debt maturity to 3.6 years. With no refinancing needs until June 2028, borrowing costs averaged 4.4%, and 98% of borrowings are fixed or hedged through mid-2028. Dividend coverage was at 93% due to temporary cash drag but is expected to reach full coverage by fiscal 2027. The company reaffirmed a minimum dividend increase of 2% for the coming year, with shares currently offering an approximate yield of 7.5%.
Topics: debt_financing dividends portfolio_growth real_estate