REG - Supermarket Inc REIT - VALUATION UPDATE AND NOTICE OF HALF YEAR RESULTS

Supermarket Income REITAnnouncement

23/02/2023 07:00

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RNS Number : 7748Q  Supermarket Income REIT PLC  23 February 2023

23 February 2023

 

SUPERMARKET INCOME REIT PLC 

(the "Company") 

LEI: 2138007FOINJKAM7L537 

 

Valuation update and notice of half year results

  

Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust
providing secure, inflation-linked, long income from grocery property in the
UK, announces an update to the Company's unaudited valuation of its Direct
Portfolio(1) as at 31 December 2022.

 

·    The Direct Portfolio has been independently valued as at 31 December
2022 at £1,625 million, representing a decline of 13.3% on a like-for-like
basis over the six month period.

·    The valuation reflects a net initial yield of 5.5% as at 31 December
2022 (30 June 2022: 4.6%)(2).

 

The decline in valuation reflects the outward shift in property yields applied
by valuers as a result of higher interest rates and the overall macroeconomic
environment. However, the valuation decline has been partially mitigated by
our contractual inflation-linked rental uplifts. The average increase in rent
from rent reviews performed during the six month period to 31 December 2022
was 3.7%(3).

 

Ben Green, Director of Atrato Capital Limited, the Investment Adviser
to Supermarket Income REIT plc, said:  

 

"Supermarket property has been less volatile than the broader UK property
market but has not been immune to the outward yield shift experienced across
investment markets.

We have the advantage of operating in the non-discretionary spend grocery
sector which continues to outperform the wider economy.

Our high quality, future proof, omnichannel supermarket property portfolio
will continue to deliver stable, long term, inflation-linked income for our
shareholders."

 

Notice of Results

 

The Company will announce its half year results for the six month period ended
31 December 2022 on 30 March 2023. An in-person presentation for sell-side
analysts and investors will be held at 8.30 a.m. on the day of the results.
The presentation will also be viewable via a webcast with a Q&A function
for those unable to attend in-person.

 

Those wishing to attend in-person or virtually via the webcast should contact
FTI Consulting using the details below.

 

Further information regarding the results and presentation will also be made
available on the Supermarket Income REIT website here:
https://www.supermarketincomereit.com/financial-publications
(https://www.supermarketincomereit.com/financial-publications) .

 

 

 FOR FURTHER INFORMATION                                                                           
 Atrato Capital Limited                                                                           +44 (0)20 3790 8087 
                                  
 Steve Noble / Rob Abraham / Chris McMahon                                                        ir@atratocapital.com (mailto:ir@atratocapital.com)   

 Stifel Nicolaus Europe Limited                                                                   +44 (0)20 7710 7600 
 Mark Young / Matt Blawat / Rajpal Padam                                                           

 Goldman Sachs International                                                                      +44 (0)20 7774 1000

 Jimmy Bastock / Tom Hartley
                                                                                                   
 FTI Consulting                                                                                   +44 (0)20 3727 1000 

  
 Dido Laurimore / Eve Kirmatzis / Andrew Davis                                                    SupermarketIncomeREIT@fticonsulting.com
                                                                                                  (mailto:SupermarketIncomeREIT@fticonsulting.com)   

NOTES TO EDITORS: 

Supermarket Income REIT plc (LSE: SUPR) is a real estate investment trust
dedicated to investing in grocery properties which are an essential part of
the UK's feed the nation infrastructure. The Company focuses on grocery stores
which are omnichannel, fulfilling online and in-person sales. All of the
Company's supermarkets are let to leading UK supermarket operators,
diversified by both tenant and geography. 

 

The Company provides investors with attractive, long-dated, secure,
inflation-linked, growing income with the potential for capital appreciation
over the longer term and targets a 7% to 10% p.a. total shareholder return
over the medium term((4)). The Company has increased its dividend every year
since IPO.

 

The Company is listed on the premium segment of the Official List of the UK
Financial Conduct Authority and its Ordinary Shares are traded on the Main
Market of the London Stock Exchange, having listed initially on the Specialist
Fund Segment of the Main Market on 21 July 2017.

 

Atrato Capital Limited is the Company's Investment Adviser. 

 

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

 

(1) Direct portfolio valuation as at 31 December 2022 excludes one supermarket
property presented as a financial asset at amortised cost under IFRS, valued
at £10.6m. The Company owns 50 supermarkets in total, with a weighted average
unexpired lease term (WAULT) of 14 years, of which 80% of rent reviews are
inflation-linked. The Direct Portfolio excludes the Company's investment in
the Sainsbury's Reversion Portfolio.

 

(2) Cushman & Wakefield valued the Direct Portfolio as at 31 December
2022, in accordance with the RICS Valuation - Global Standards which
incorporate the International Valuation Standards and the RICS UK Valuation
Standards edition current at the valuation date. The properties were valued
individually without any premium/discount applying to the portfolio as a
whole.

 

(3) Average annualised increase for rents subject to an inflation-linked
review during the period 1 July 2022 to 31 December 2022.

 

(4) There is no certainty that these illustrative projections will be
achieved.

 

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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