REG - Supermarket Inc REIT - Debut £250m, 6-Year, Unsecured Bond Issuance

Supermarket Income REITAnnouncement

24/07/2025 07:00

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RNS Number : 3245S  Supermarket Income REIT PLC  24 July 2025

24 July 2025

SUPERMARKET INCOME REIT PLC

(the "Company")

 

DEBUT £250m, 6-YEAR, UNSECURED BOND ISSUANCE

 

Supermarket Income REIT plc is pleased to announce the issuance of its debut
£250 million sterling-denominated senior unsecured bond with a term of 6
years (the "Bonds"). The Bonds will be quoted on the International Securities
Market of the London Stock Exchange.

 

The Bonds will bear a coupon of 5.125% and were priced at a spread of 115
basis points over the relevant benchmark. The bond issuance received strong
demand from a broad range of high-quality institutional investors, with the
orderbook peaking in excess of £985 million.

 

Fitch Ratings Ltd is expected to assign the Bonds an investment-grade rating
of BBB+, in-line with its existing issuer ratings of Supermarket Income REIT
plc. The net proceeds of the Bonds will be used for general corporate purposes
including the refinancing of existing debt facilities. The issuance represents
a further diversification of the Company's capital structure, as it
transitions to primarily unsecured financing, and extends its average debt
maturity profile by almost two years.

 

Following the issuance of the Bonds, the Company's LTV will be 34% on a
pro-forma basis, and the weighted average debt maturity will be 4.6 years. The
issuance will allow the Company to use the value of the existing interest rate
derivatives to hedge its overall interest rate exposure to c.4.7%, once the
joint venture proceeds have been redeployed, further supporting our focus on
delivering a fully covered, growing and sustainable dividend for our
shareholders.

 

Mike Perkins, CFO of Supermarket Income REIT, commented:  

 

"As previously indicated, it has been a long-held ambition of ours to issue a
bond and we are pleased that it has received such a strong level of investor
interest. Our first bond issuance represents a significant milestone for the
Company, enhancing our financial flexibility and supporting our long-term
growth strategy.

 

Securing this longer dated financing at an attractive fixed rate lowers SUPR's
medium-term borrowing costs and enhances the potential earnings accretion of
our attractive acquisition pipeline as we continue to scale the business."

 

Barclays, Goldman Sachs and HSBC acted as Joint Active Bookrunners on the
transaction. Wells Fargo and NatWest acted as Passive Bookrunners. SUPR was
advised on the bond by Rothschild & Co.

 

 

 FOR FURTHER INFORMATION                                                                                                      
 Supermarket Income REIT plc                                                                                                 ir@suprplc.com  
 Rob Abraham/ Mike Perkins/ Chris McMahon

 Stifel Nicolaus Europe Limited                                                                                              +44 (0)20 7710 7600 
 Mark Young/ Rajpal Padam/ Catriona Neville                                                                                   
                                                                                                                              
 Goldman Sachs International                                                                                                 +44 (0)20 7774 1000

 Tom Hartley/ Luca Vincenzini

 FTI                                                                                                                         +44 (0)20 3727 1000 
 Consulting                                                    
 Dido Laurimore/ Eve Kirmatzis/ Andrew Davis                                                                                 SupermarketIncomeREIT@fticonsulting.com  

 

NOTES TO EDITORS: 

 

Supermarket Income REIT plc (LSE: SUPR, JSE: SRI), a FTSE 250 company, is
the only LSE listed company dedicated to investing in grocery properties which
are an essential part of the feed the nation infrastructure. The Company owns
83 supermarkets((1)) which are predominantly omnichannel, fulfilling online
and in-person sales and are let to leading supermarket operators in the UK and
Europe. The portfolio was valued at £1.8 billion as at 31 December 2024.

 

The Company's properties earn long-dated, secure, inflation-linked, growing
rental income. SUPR targets a progressive dividend and the potential for long
term capital growth.

 

The Company's shares are traded on the LSE's Main Market and on the Main Board
of the JSE Limited in South Africa.

 

((1))75 directly owned, plus eight supermarkets via a 50:50 joint venture
which is managed by the Company.

 

Further information is available on the Company's
website www.supermarketincomereit.com (http://www.supermarketincomereit.com/)
 

 

LEI: 2138007FOINJKAM7L537 

 

 

Stifel Nicolaus Europe Limited, which is authorised and regulated in the
United Kingdom by the Financial Conduct Authority, is acting exclusively for
Supermarket Income REIT plc and no one else in connection with this
announcement and will not be responsible to anyone other than the Company for
providing the protections afforded to clients of Stifel Nicolaus Europe
Limited nor for providing advice in connection with the matters referred to in
this announcement.

 

Goldman Sachs International, which is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential
Regulation Authority in the United Kingdom, is acting exclusively for
Supermarket Income REIT plc and no one else in connection with this
announcement and will not be responsible to anyone other than the Company for
providing the protections afforded to clients of Goldman Sachs International
nor for providing advice in connection with the matters referred to in this
announcement.

.

 

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