REG - Supermarket Inc REIT - SUPR completes £41m of accretive acquisitions

Supermarket Income REITAnnouncement

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RNS Number : 8389G  Supermarket Income REIT PLC  10 November 2025

10 November 2025

SUPERMARKET INCOME REIT PLC 

(the "Company") 

 

SUPR COMPLETES £41M OF ACCRETIVE ACQUISITIONS

Supermarket Income REIT plc (LSE: SUPR) announces that it is has completed
£40.9 million of acquisitions that are accretive to earnings and WAULT across
two transactions at an average net initial yield of 6.4%(1).

Following these transactions the Company has now redeployed £99.8 million of
the proceeds of the Company's strategic joint venture with funds managed by
Blue Owl Capital ("Blue Owl"), which was announced in April 2025, at a net
initial yield of 6.7%.

Tesco, Craigavon acquisition

The acquisition of this upper quartile performing food store in Craigavon,
Northern Ireland, at a purchase price of £25.6 million (excluding acquisition
costs) reflects an attractive net initial yield of 6.5%(2). The 8.6-acre site
comprises a 130,000 sq ft gross internal area omnichannel supermarket and a
petrol filling station and is the primary omnichannel Tesco store within a
25-minute drivetime of the site. It serves as an online fulfilment hub with 12
home delivery vans, as well as offering Click & Collect services. The
unexpired term of the triple-net lease is 15 years with five-yearly,
CPI-linked rent reviews (annually compounded, subject to a 4% cap and 0%
floor), with a highly affordable rent of £12.70 per sq. ft.

Acquisition of a portfolio of 10 Sainsbury's convenience stores marks entry
into convenience-grocery

The Company has also completed the acquisition of 10 Sainsbury's convenience
stores at a purchase price of £15.3 million (excluding acquisition costs),
reflecting a net initial yield of 6.1%(3). The stores are being acquired from
Sainsbury's with attractive 15-year triple-net leases that benefit from
five-yearly, CPI-linked rent reviews (annually compounded, subject to a 3% cap
and 1% floor).

The acquisition of these strong trading stores represents SUPR's first
investment in convenience grocery. These strongly performing stores have an
average gross internal area of 5,800 sq ft and are situated in densely
populated town-centre locations across the UK, with strong footfall and
visibility.

Locations of the Sainsbury's assets:

·    Boston Manor

·    Bristol

·    Doncaster

·    Edinburgh

·    Melbourne

·    Nottingham

·    Royal Leamington Spa

·    Sheffield

·    Solihull

·    South Benfleet

The Company increasingly sees opportunity within the small format grocery
space, where strong trading stores can be acquired at attractive prices and
retain the key triple-net, inflation-linked fundamentals of the adjacent large
format grocery sector.

Following these acquisitions, the Company's pro-forma LTV is 36%, with the
portfolio WAULT at 11 years.

Rob Abraham, CEO of Supermarket Income REIT, commented:

"We continue to make good progress with redeploying the proceeds from our
joint venture into income accretive opportunities. We have a strong pipeline
of large format omnichannel supermarkets, whilst we also see attractive
relative value in smaller format convenience stores as demonstrated by our
acquisition from Sainsbury's. Our relationship-led model and sector specialism
continues to set us apart in the market, enabling us to unlock these unique
opportunities and strategically scale the business."

Notes

(1) NIY assuming respective standard purchaser's costs

(2) NIY assuming standard purchaser's costs of 6.8%

(3) NIY assuming standard purchaser's costs of 7.8%

 

 

 FOR FURTHER INFORMATION                                                                               
 Supermarket Income
 REIT
   
 Rob Abraham / Mike Perkins / Chris McMahon                                                         ir@suprplc.com (mailto:ir@suprplc.com)     
                                                                                                      

 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                                                                       

 Headland Consultancy                                                                               +44 (0)20 3805 4885

    
 Susanna Voyle / Antonia Pollock / Dan Mahoney                                                       SUPR@headlandconsultancy.com (mailto:SUPR@headlandconsultancy.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 national food infrastructure. The Company focuses on
grocery stores 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 £1.6 billion as at 30 June 2025.

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. 

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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