Supermarket Income REIT Delivers H1 2026 Earnings
Supermarket Income REIT plc released its half-year results for the period ended December 31, 2025, highlighting a portfolio valuation reaching £2 billion amid active expansion.83
Financial Highlights
EPRA earnings per share declined 10% to 2.7 pence from 3.0 pence year-over-year, attributed to higher debt costs from recent acquisitions.8385 Net rental income fell 2% to £57 million as certain assets shifted to joint ventures and capital redeployment occurred.83 Revenue stood at £48.59 million, down from £57.83 million prior year, while net income remained stable at £36.32 million.82
EPRA net tangible assets per share rose slightly by 0.4% to 87.5 pence. The company maintained 100% occupancy and full rent collection.83
Portfolio Growth and Acquisitions
The portfolio value surged 20% to £2 billion. Management deployed £398 million in acquisitions at a blended net initial yield of 6.5%, including £170 million in UK investment-grade assets, £98 million in sub-investment-grade sale-and-leasebacks, £28 million in Waitrose stores, and £103 million in European properties. A standout deal was a €123 million sale-and-leaseback with Carrefour for 20 stores at 6.6% yield.83
Strategic Developments
The REIT transitioned to an internalized management structure, cutting administrative costs by 32% and the EPRA cost ratio by 440 basis points to 9.2%, targeting below 9% by FY2027. The joint venture platform grew to £845 million in assets, yielding £2 million in annual fees. New hires include Jamie Cowen as Strategy Director and Justin Upton as Head of Investment.83
Dividends held at 3.09 pence per share, up 1%, with guidance for at least 2% annual growth from FY2027. Coverage remains partial due to earnings dip.85
Future Outlook
Executives aim to double the portfolio to £4 billion, backed by a £500 million-plus pipeline. Plans include boosting European exposure to 15% and reducing leverage to 7-8x net debt to EBITDA within 12 months. Target portfolio: 90% grocery income, 12-year average lease term, 80% inflation-linked rents, 70% investment-grade.83
