Supermarket Income REIT gives upbeat outlook as full-year profits rise
Supermarket Income Reit
75.90p
11:35 19/09/24
Grocery store investor Supermarket Income REIT hailed a resilient performance during its most recent financial year, growing rental income and profits despite ongoing macro challenges, as it delivered an optimistic outlook for the year ahead.
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Supermarket Income REIT, who generates 75% of its rental income from Tesco and Sainsbury's alone, owns a portfolio of 73 stores including 17 Carrefour stores in France.
The company, which achieved 100% occupancy and 100% rent collection, predicted strong grocery market growth across the UK and France over 2024, where industry sales are forecast to grow by 5.8% and 2.1% respectively.
Annualised passing rents increased by 12% over the 12 months to 30 June to £113.1m, reflecting a 4% average like-for-like rental uplift and the £135.8m of accretive acquisitions made during the year.
Adjusted earnings per share were up 4% at 6.1p, while the company lifted its dividend to 6.1p, just 1% higher than last year.
"The company's operational performance has been resilient with 100% occupancy and 100% rent collection despite the broader market and macro-economic challenges of the past years," said chair Nick Hewson.
"Looking ahead, we remain optimistic that the improving interest rate environment should provide positive tailwinds for the company."