UK's Supermarket Income REIT EPRA earnings per share fall on refinancing costs
UK's Supermarket Income REIT EPRA earnings per share fall on refinancing costs
Overview
UK grocery real estate investor's EPRA earnings per share fell 4.1% yr/yr
IFRS earnings per share rose 39.4% yr/yr
Dividend per share increased 1% yr/yr; company completed £100 mln equity raise post year-end
Outlook
Company targeting minimum dividend growth of 2% per annum from FY27
Board recommends target dividend of 6.30p for year ending 30 June 2027, up 2%
Company sees pipeline of over £500 mln in high-quality grocery assets for future growth
Result Drivers
PORTFOLIO EXPANSION - Co acquired £454 mln of properties, diversifying its portfolio and scaling its JV with Blue Owl Capital
EARNINGS IMPACT FROM JV AND INTEREST COSTS - Reduction in earnings primarily reflects timing of redeployment of JV proceeds and one-off increase in interest costs from refinancing
OPERATIONAL EFFICIENCY - EPRA cost ratio fell to 9.2%, among the lowest in the sector, due to internalisation and cost reductions
Company press release: ID:nRSP9066Ua
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Dividend |
| GBP 0.06 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the commercial reits peer group is "buy"
Wall Street's median 12-month price target for Supermarket Income REIT PLC is GBp93.00, about 12.8% above its September 15 closing price of GBp82.45
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Sept 15 - UK grocery inflation edges higher over last month, says Worldpanel
Sept 15 - UK's Wickes sees sales pick up as customers chase value
Sept 15 - UK food price inflation could hit nearly 7% in 2027, says industry researcher
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)