REG - Supermarket Inc REIT - Interim Results for six months ended 31 Dec 2025
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RNS Number : 1238W Supermarket Income REIT PLC 11 March 2026
Supermarket Income REIT plc
("SUPR", the "Group" or the "Company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
STRONG STRATEGIC DELIVERY DRIVEN BY AN ESTABLISHED PLATFORM FOR GROWTH
Supermarket Income REIT plc (LSE: SUPR, JSE: SRI), the leading grocery real
estate business that invests in high-quality, inflation linked, grocery
assets, reports its results for the six months ended 31 December 2025 (the
"Period").
· JV proceeds now fully redeployed, updating guidance to a target
minimum sustainable dividend uplift of 2% p.a. for FY27 onwards
· Delivered results in line with market forecasts; underpinned by
strong structural grocery dynamics
· Significant pipeline of opportunities across grocery real estate
that can be unlocked by industry-leading specialism and a cost-efficient,
shareholder-aligned platform
FINANCIAL HIGHLIGHTS
Six months to Six months to Change
31-Dec-25 31-Dec-24 in Year
Annualised passing rent (1) £132.0m £118.5m +11%
EPRA earnings per share 1 (#_ftn1) 2.7 pence 3.0 pence -10%
IFRS earnings per share 2.9 pence 2.9 pence 0%
Dividend per share (declared) 3.09 pence 3.06 pence +1%
Dividend cover(1, 2 (#_ftn2) ) 88% 99% -11pts
EPRA cost ratio(1) 9.2% 13.6% -4.4pts
31-Dec-25 30-June-25 Change
in Period
Portfolio valuation(1, 3 (#_ftn3) ) £2,057m £1,625m +27%
Portfolio net initial yield(1, 3) 6.0% 5.9% +0.1pts
EPRA NTA per share(1) 87.5 pence 87.1 pence +0.5%
IFRS NAV per share 88.4 pence 88.5 pence -0.1%
Loan to value(1, 3) 45% 31% +14pts
Rob Abraham, CEO of Supermarket Income REIT plc, commented:
"SUPR has delivered a strong first half for shareholders, with significant
levels of activity as we continue to execute our strategy at pace. Capital
from the JV has been redeployed successfully to enhance both the value and
income across our high-quality grocery portfolio. The benefits of management
internalisation are clearly demonstrated with a cost ratio firmly amongst the
sector leaders. Our shareholders will directly benefit through the
introduction of our new sustainable dividend growth target of a minimum 2%
p.a. for FY27 onwards, as we continue to build on our leading position.
"The growth opportunity within grocery real estate remains highly compelling
with supermarket sales reaching record highs in December 2025. Against this
backdrop, our deep sector expertise coupled with our strong sector
relationships gives us a unique advantage as we look to double the size of the
portfolio over time. We have a compelling near-term pipeline, with omnichannel
supermarkets continuing to perform strongly, and the potential for
diversification into new geographies and complementary adjacencies within
grocery real estate opening up additional opportunities for SUPR."
Successful delivery of strategic initiatives has positioned SUPR for long-term
growth
· Scaled the joint venture with funds managed by Blue Owl Capital (the
"JV") to £845 million 4 (#_ftn4)
· £398 million of earnings enhancing acquisitions, which are expected
to contribute to providing a sustainable, growing dividend for FY27 onwards
o Movement in earnings is a temporary reflection of asset transfer into the
JV, which will unwind following the reinvestment into new assets, and one-off
impact of the proactive decision to refinance and extend the term of debt
broadly in line with current incremental cost of debt
· Highly efficient and shareholder-aligned platform with an EPRA cost
ratio of 9.2%, one of the lowest in the sector, on track to deliver below 9%
in the near term
· Robust balance sheet following the Company's debut bond issuance in
July 2025, with an LTV of 43% (including post balance sheet events)
· The Company's portfolio valuation increased by 1.3% on a
like-for-like basis(3)
· With full deployment, the Company is now targeting a sustainable
minimum dividend uplift of 2% per annum for FY27 onwards
Building on SUPR's leading position in an exciting sector
· Non-discretionary grocery spend continues to demonstrate growth and
resilience with take home sales reaching a record £13.8 billion( 5 (#_ftn5)
) in December 2025
· Mission critical omnichannel stores are capturing growth in the
online market, which now accounts for 12.6% of the total grocery market 6
(#_ftn6)
· While retaining an industry leading cost ratio, SUPR has reinforced its
position as a sector specialist following investment in senior hires, allowing
the Company to identify unique opportunities across the wider grocery real
estate universe with its relationship-led model
Further progress on key sustainability initiatives
· Awarded first ever European Public Real Estate Association ("EPRA")
Sustainability Best Practices Recommendations ("sBPR") Gold Award for
sustainability reporting to accompany the Company's seventh consecutive EPRA
Gold Award for financial reporting
· Joined the UN Global Compact, reflecting the Company's commitment
to a principles-based approach to business
A strong pipeline of future opportunities
· Strong pipeline of opportunities of over £500 million of high-quality
assets in the grocery property investment universe
· While maintaining a core focus on UK omnichannel supermarkets, the
Company is leveraging its sector specialism and relationships to grow within
the wider grocery real estate space
· This includes further investment in grocery-anchored retail parks
and European supermarkets, whilst the Company is also exploring opportunities
within grocery distribution
PRESENTATION FOR ANALYSTS
The Company will be holding an in-person presentation for analysts at 8.30am
(GMT) today at MYO St Paul's, One New Change, London, EC24M 9AF. To register
to attend in-person, please contact Headland Consultancy:
SUPR@headlandconsultancy.com. There will also be a webcast available. To join
the presentation via the webcast, please register using the following link:
Supermarket Income REIT - Half Year Results Presentation 2026 | SparkLive |
LSEG
(https://sparklive.lseg.com/SupermarketIncomeREIT/events/caa71887-fd76-48ed-809b-16e99315715e)
The results presentation is available in the Investor Centre section of the
Group's website.
FOR FURTHER INFORMATION
Supermarket Income REIT plc
Rob Abraham / Mike Perkins / Chris McMahon ir@suprplc.com
Headland Consultancy +44 (0)20 3805 4885
Susanna Voyle / Antonia Pollock / Dan Mahoney 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 £2.1 billion as at 31 December 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
CHAIR'S STATEMENT
I am pleased to report yet another highly active period for the Company,
focused on generating value for shareholders and positioning SUPR for further
long-term growth. The team's tireless work on this front has been recognised
by the market with the Company's shares trading closer to EPRA NTA, having
traded at a discount of around 25% a little over a year ago.
Our earnings were in line with market expectations, with the movement this
half principally reflecting the temporary cash drag from the JV announced in
April 2025, and one-off impact from our proactive decision to refinance and
extend the term of our debt, at what is now broadly in line with market rates.
The Company efficiently deployed this capital into earnings enhancing
opportunities, with £398 million of acquisitions in the period. This is
expected to contribute to a sustainable, growing dividend for FY27 onwards,
with secure income which is underpinned by our inflation-linked leases let to
tenants in the non-discretionary grocery space.
The positive impact of our disciplined and efficient redeployment of capital
has been enhanced by our sector specialism and the strength of our
relationships in the grocery space as we have further diversified our asset
type and tenant base. While expanding our core portfolio of large format,
omnichannel supermarkets let to investment grade tenants in the UK, we have
taken advantage of strong relative value opportunities with direct sale and
lease back transactions for a portfolio of 20 Carrefour supermarkets purchased
directly by the Company, and 10 Asda supermarkets purchased by the JV. These
are all strategically important supermarket sites with long trading histories,
generating attractive returns for our shareholders. These transactions
exemplify our strategy of combining secure, inflation-linked income with
assets that are critical to operators' omnichannel fulfilment needs.
The quality of our assets is apparent in our improving valuations and it is
pleasing to see a return to EPRA NTA growth. We see tailwinds for rental
growth across the portfolio, supported by rising sales and robust
profitability from the major supermarket groups, reinforced by the mission
critical role of large format stores within the operators' omnichannel
networks. This dynamic not only validates our investment thesis but also
provides confidence in long term income growth.
To support and sustain this momentum for shareholders, we are investing in our
platform. We have welcomed a number of senior hires including Jamie Cowen, who
brings over 30 years' experience in grocery real estate investment, having
previously worked in senior investment and property development roles at
Sainsbury's. Jamie's sector expertise and deep relationships further
strengthen our origination and execution capability. Attracting talent of this
calibre speaks to the scale of the opportunity ahead for SUPR and to the
quality of the platform.
Our highly efficient operating model will continue to drive portfolio growth
and earnings as we scale and I am pleased to report that the EPRA cost ratio
reduced to 9.2% in H1 (13.6% H1 2025), keeping us on track to deliver below 9%
in the near term.
The Company continues to focus on driving sustainable value across the
portfolio. The Company's sustainability performance has been externally
recognised with the achievement of an EPRA Sustainability Best Practice
Recommendations ("sBPR") Gold Award for the first time. Engaging with our
tenants on sustainability has continued to be a key priority for the Company
and we look forward to reporting on our progress in this area in the Company's
next Sustainability Report.
Outlook
As we look ahead, we remain mindful of broader macroeconomic uncertainty,
including market volatility linked to the ongoing tensions in the Middle East.
Against this backdrop, we have now deployed the proceeds of the JV into
earnings enhancing assets and expect to deliver a sustainable, growing
dividend for FY27 onwards. The Board reiterates its minimum target dividend of
6.18p for the year ending 30 June 2026 and as a result of the Company's
investment activity over the last 12 months the Board is pleased to announce
it is targeting a 2% dividend increase for the year ending 30 June 2027. Our
strategic focus remains on sustainably growing earnings and dividends over
time as the business benefits from the reinvestment of JV proceeds,
operational efficiencies, and the contribution from recent acquisitions.
In summary, we have a compelling pipeline, access to capital, and a highly
motivated team in place with the right experience. With a fully aligned
internal management structure and a platform built for efficiency and growth,
SUPR is well placed to continue creating long‑term value for shareholders. I
look forward to keeping you updated as we maintain the discipline, creativity
and momentum demonstrated in the first half of the year - with a clear focus
on enhancing our portfolio and delivering shareholder returns.
Nick Hewson
Chair
10 March 2026
CHIEF EXECUTIVE'S REVIEW
Business Review
Chief Executive, Robert Abraham
A growing and resilient grocery market
The non-discretionary and highly resilient UK grocery market has continued to
demonstrate growth, with take‑home sales reaching a record £13.8
billion( 7 (#_ftn7) ) in December 2025. The larger, established supermarket
operators with extensive store networks have been the main beneficiaries of
this, aided by the slow and restrictive planning system that creates high
barriers to entry for new competitors.
In the six months to 31 December 2025, SUPR's key tenants, Tesco and
Sainsbury's gained market share driven by strong performance from existing
store estates, following continued investment in price, product offering and
customer experience. Both operators delivered volume growth ahead of the
market, underpinning the market share gains. The UK's two largest grocers now
have a combined market share of 45%( 8 (#_ftn8) ), up 50 basis points from
December 2024.
Asda's weaker performance was anticipated, with market share falling to
11.4%(8) in the period. The business' price-focused turnaround strategy is
expected to have a near term impact on revenues. This, alongside the
completion of Asda's significant investment into IT infrastructure and systems
(Project Future) is expected to stabilise the business during 2026.
Growth in online market underpins the essential role of omnichannel
supermarkets
The online grocery market has continued to grow, accounting for 12.6%(8) of
the total market in December 2025, from 12.0% 9 (#_ftn9) in December 2024.
Tesco and Sainsbury's have captured this growth, demonstrating strong online
sales growth over the same period at 9.5% 10 (#_ftn10) and 11.9%(10)
( )respectively.
A key pillar of SUPR's strategy is to invest in strategically located
omnichannel supermarkets, fulfilling both in-store and online shopping,
capturing the online growth. The UK's major omnichannel grocers, Tesco,
Sainsbury's, Asda, and Morrisons, benefit from substantial economies of scale
and a pre-existing last-mile fulfilment network, which allows capital light
expansion of online sales. Shorter delivery distances improve slot
availability and lower per‑order operating costs. SUPR's focus on
omnichannel stores means it is well positioned to benefit from continued
growth in the online grocery market.
SUPR has further established itself as the leading grocery landlord
The business continues to recycle and deploy capital to significantly enhance
future earnings growth. Total transaction volumes of £630 million during the
first half of the year, comprised of £398 million in purchases at a blended
net initial yield of 6.5% and the agreement to transfer five stores to the JV
at a purchase price of £232 million. The rapid redeployment of capital
receipts following the formation of the JV has generated enhanced returns as
we continue to focus on investment into high-quality mission critical assets
across the grocers' supply chains.
Key transactions
· Asda sale & leaseback (November 2025): £196 million acquisition
of 10 omnichannel supermarkets let to Asda at a net initial yield of 7.4%
through the JV. The team hand-picked the 10 preferred stores from a wider
20-store portfolio, based on its assessment of catchment dominance and a
strong alternative occupier case. The attractive pricing presents strong
relative value versus investment in long-let investment grade names, while
mitigating downside risk through the focus on asset quality. SUPR contributed
£98 million to this acquisition, reflecting its 50% share in the JV.
· Sainsbury's convenience stores (October 2025): £15.3 million
acquisition of 10 convenience stores, completed at a net initial yield of 6.1%
for 15-year index-linked leases, representing a 50 - 75 basis point spread to
similar leases on a large format store. This expansion of SUPR's investment
universe into convenience has allowed us to capture relative value.
· Carrefour sale & leaseback (November 2025): €123 million
acquisition of 20 omnichannel supermarkets 11 (#_ftn11) , let at an
attractive net initial yield of 6.6%. This continued the rollout of our
Carrefour sale and leaseback programme is a testament to the strong
relationship we have cultivated with the operator. SUPR's portfolio in France
is now of significant scale, standing at €235 million(11) across 46(11)
assets geographically diversified across France.
· £182 million in secondary market acquisitions: We continue to
identify attractive opportunities in the secondary market in line with our
core investment criteria, demonstrated by our acquisition of six further
assets at an average yield of 6.1% for 12 years of income.
We continue to see increasing institutional interest in grocery assets, with
early signs of core capital returning to the investment market, which
highlights the attractiveness of SUPR's portfolio. This was demonstrated by
the pricing achieved on the agreed terms for the transfer of five of SUPR's
portfolio assets into the JV at 3% above 30 June 2025 book value.
Modest valuation growth driven by contractual rental uplifts
Cushman & Wakefield valued the Direct Portfolio as at 31 December 2025,
and the properties in the JV were independently valued by Jones Lang LaSalle.
These valuations are 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 Direct Portfolio was valued at a total market value of £1,750 million
(including assets held for sale). During the period, the Company agreed to
transfer five stores into the JV for a total consideration of £232
million 12 (#_ftn12) (3% above June 2025 book value).
The Joint Venture properties were valued at £613 million, reflecting a
combined Portfolio value of £2,057 million (including assets held for sale),
and a like-for-like valuation increase across the Company's Portfolio of 1.3%
vs MSCI All Property Capital Growth Index during the same period which was up
0.4%.
The valuation increase has been primarily driven by contractual rent reviews,
with 82% linked to inflation and 2% on a fixed basis as at 31 December 2025.
The average annualised rental increase from rent reviews during the period was
3.8%.
UK supermarkets 31 December 2025
NIY 5.8%(3)
NRY 5.3%(3)
NEY 13 (#_ftn13) (Direct Portfolio) 5.7%
NEY(13) (Joint Venture) 6.2%
Established an efficient platform for growth
The internalisation has created a simplified management structure and
generated significant cost savings. SUPR's EPRA cost ratio is 9.2% today and
is expected to reduce to below 9% in the near term. The benefit of this can be
compounded over time as SUPR's asset base continues to scale.
Internalising the management structure has also allowed SUPR to continue
investing in its team of sector experts, most recently with the hire of Jamie
Cowen as Strategy Director and Justin Upton as Head of Investment. Jamie joins
from Sainsbury's, where he worked as the Director of Estates & Investment,
and brings over 30 years' experience in grocery real estate investment and
operations to the business. Justin brings 25 years' experience in real estate
capital markets having worked at Henderson Global Investors, M&G
Investments and most recently as CIO at Urban Logistics REIT.
A compelling pipeline of opportunities
The team has continued to identify and secure a healthy pipeline of
opportunities in the grocery real estate market, with £500 million of UK
assets available in our core target UK supermarkets. We are also tracking
further opportunities, both in terms of asset classes and geographically. This
includes further investment in grocery-anchored retail parks and European
supermarkets, as well as expanding SUPR's investment universe to encompass
grocery distribution. Continued growth of the platform will enable further
diversification, both geographically and by asset class.
We have demonstrated the attractiveness of grocery real estate to
institutional capital and the team's ability to partner with third party
capital providers, through the rapid expansion of the JV, to £845 million
including five stores for which the Company agreed terms to transfer to the JV
in November 2025. JVs are an attractive, capital-light route to scale as SUPR
seeks to take advantage of the breadth of investment opportunities currently
available.
Driving sustainable value across the portfolio
The Company continues to make strong progress across all three pillars of its
sustainability strategy, as detailed in the most recent Sustainability Report
published in September 2025. The Company's commitment to improving ESG
performance has been recognised externally, with the Company achieving its
first EPRA Sustainability Best Practice Recommendations (sBPR) Gold Award in
September 2025.
Understanding tenant sustainability performance, particularly energy
usage, continues to be a key priority for the Company. Strong data-request
responses in the period is a reflection of the Company's proactive engagement
and collaboration with tenants and property managers. Grant Thornton is again
providing independent assurance over the Company's Scope 1, 2 and 3 emissions,
and a refreshed tenant ESG assessment has been implemented to deepen
understanding of tenant targets and initiatives. The Company will also
introduce Munich RE's Climate Risk Intelligence tool to enhance climate risk
analysis for its next TCFD Report.
Community engagement remains a core pillar of the Company's Sustainability
Strategy. In December, the Company was proud to support its charity partner,
FareShare, with more than 30 hours of volunteering in Tesco stores as part of
the FareShare Winter Food Collection drive. Looking ahead, the Company is
planning additional volunteering events throughout 2026 to support its target
of having more than 85% of employees participate in volunteering each year.
The Company's next annual Sustainability Report will be published alongside
the Full Year Results and will provide an update on progress against the
Company's Sustainability Strategy.
Outlook
We have continued to build on the delivery of our strategic initiatives during
the first half of the year. Efficient capital recycling has been at the heart
of transforming SUPR's earnings profile, with £630 million in transaction
volumes 14 (#_ftn14) . This, in part, has been achieved through the scaling
of the JV to £845 million(4), since its inception in May 2025.
We have streamlined the SUPR platform following the internalisation of
management, supported by several senior investment hires reinforcing the
Company's sector specialism, and remain on target to achieve one of the lowest
EPRA cost ratios in the sector at below 9% in the near term.
This provides a strong basis from which to further grow the platform. We are
currently tracking over £500 million in opportunities in our core UK markets,
with further opportunities across Europe and the broader grocery real estate
value chain. The Company's focus is to scale and diversify the portfolio
keeping UK omnichannel supermarket assets at the core, while leveraging the
team's sector specialism to broaden into adjacencies within grocery real
estate that deliver long-dated, inflation-linked income from grocery tenants.
In the meantime, we have paved the way for further growth in shareholder
returns, with the Board reiterating its 6.18 pence minimum dividend target for
FY26 and targeting a sustainable 2% per annum dividend increase for FY27
onwards.
KEY PERFORMANCE INDICATORS
Our objective is to provide secure, inflation-linked, long-dated income from
grocery property. Set out below are the key performance indicators we use to
track our progress.
KPI Definition Performance
1. Total Shareholder Return Shareholder return is one of the Group's principal measures of performance. 0.1% for the six months ended 31 December 2025
Total Shareholder Return ("TSR") is measured by the movement in the Company's (Six months ended
net return index which reflects movements in share price over the period plus
31 December 2024: (-1.1%)
dividends reinvested in shares on the ex-dividend date, expressed as a
percentage of the share price at the start of the period.
(24.0% for the year to 30 June 2025)
2. Total Accounting Return Growth in the Group's NTA over a period plus dividends paid for that period 4.0% for the six months ended 31 December 2025
(Six months ended
31 December 2024: (4.1%))
(Year ended 30 June 2025: 7.2%)
3. EPRA EPS A measure of EPS designed by EPRA to present underlying earnings from core 2.7 pence per share for the six months ended 31 December 2025
operating activities.
(Six months ended
31 December 2024: 3.0 pence)
(Year ended 30 June 2025: 6.0 pence)
4. WAULT WAULT measures the average unexpired lease term of the Property Portfolio, 12 years WAULT as at 31 December 2025
weighted by rent.
(As at 30 June 2025: 11 years)
5. EPRA NTA per share The value of our assets (based on an independent valuation) less the book 87.5 per share as at 31 December 2025 (As at 30 June 2025: 87.1 pence per
value of our liabilities, attributable to Shareholders and calculated in share)
accordance with EPRA guidelines. EPRA states three measures of NAV to be used;
of which the Group deem EPRA NTA as the most meaningful measure. See Note 26
for more information.
6. Net Loan to Value Net borrowings divided by the market value of investment properties reported 45.0% as at 31 December 2025 (As at 30 June 2025: 31%)
on a proportionally consolidated basis.
The Group uses alternative performance measures including the European Public
Real Estate ("EPRA") Best Practice Recommendations ("BPR") to supplement its
IFRS measures as the Board considers that these measures give users of the
financial statements the best understanding of the underlying performance of
the Group's property portfolio. The EPRA measures are widely recognised and
used by public real estate companies and investors and seek to improve
transparency, comparability and relevance of published results in the sector.
Reconciliations between EPRA measures and the IFRS financial statements can be
found in Notes 12 and 26 to the financial statements.
EPRA PERFORMANCE INDICATORS
The table below shows additional performance measures, calculated in
accordance with the Best Practices Recommendations of the European Public Real
Estate Association (EPRA). We provide these measures to aid comparison with
other European real estate businesses.
For a full reconciliation of all EPRA performance indicators, please see the
Notes to EPRA measures within the supplementary section of the interim
financial statements.
Measure Definition Performance
1. EPRA EPS A measure of EPS designed by EPRA to present underlying earnings from core 2.7 pence per share for the
operating activities.
six months ended 31 December 2025 (3.0 pence per share for the six months
ended 31 December 2024)
2. EPRA Net Reinstatement Value (NRV) per share An EPRA NAV per share metric which assumes that entities never sell assets and 98.7 pence per share as at
aims to represent the value required to rebuild the entity.
31 December 2025 (As at
30 June 2025: 96.0 pence per share)
3. EPRA Net Tangible Assets (NTA) per share An EPRA NAV per share metric which assumes entities buy and sell assets, 87.5 pence per share as at
thereby crystallising certain levels of unavoidable deferred tax.
31 December 2025 (As at
30 June 2025: 87.1 pence per share)
4. EPRA Net Disposal Value (NDV) per share An EPRA NAV per share metric which represents the Shareholders' value under a 87.5 pence per share as at
disposal scenario, where deferred tax, financial instruments and certain other
31 December 2025 (As at
adjustments are calculated to the full extent of their liability, net of any
30 June 2025: 88.0 pence
resulting tax.
per share)
5. EPRA Net Initial Yield (NIY) & EPRA "Topped-Up" Net Initial Yield Annualised rental income based on the cash rents passing at the balance sheet 6.0% NIY and "Topped Up" as at 31 December 2025 (As at 30 June 2025: NIY 5.8%
date, less non-recoverable property operating expenses, divided by the market & "Topped Up" 5.9%)
value of the property, increased with (estimated) purchasers' costs.
6. EPRA Vacancy Rate Estimated Market Rental Value (ERV) of vacant space divided by ERV of the 0.2% as at 31 December 2025 (As at 30 June 2025: 0.3%)
whole portfolio.
7. EPRA Cost Ratio (Including direct vacancy costs) Administrative & operating costs (including costs of direct vacancy) 9.2% for the six months ended 31 December 2025
divided by gross rental income.
(Year ended 30 June 2025: 13.0%)
8. EPRA Cost Ratio (Excluding direct vacancy costs) Administrative & operating costs (excluding costs of direct vacancy) 8.8% for the six months ended 31 December 2025
divided by gross rental income.
(Year ended 30 June 2025: 12.4%)
9. EPRA LTV Net debt divided by total property portfolio and other eligible assets. 49.0% as at 31 December 2025 (As at 30 June 2025: 36.1%)
10. EPRA Like-for-like Rental Growth Changes in net rental income for those properties held for the duration of 0.8% for the six months to 31 December 2025 (six months to 31 December 2024:
both the current and comparative reporting period. 2.1%)
11. EPRA Capital Expenditure Amounts spent for the purchase and development of investment properties £423.6 million for the six months ended 31 December 2025 (£82.1 million for
(including any capitalised transaction costs). the year ended 30 June 2025)
FINANCIAL OVERVIEW
Overview
This has been another very busy period for the Company, with a focus on
efficient redeployment of capital further to the completion of our Joint
Venture in May 2025. Our priority is to support a sustainable and growing
dividend for shareholders.
During the six months to 31 December 2025, we completed £398 million of
acquisitions 15 (#_ftn15) at a blended net initial yield of 6.5%, which will
deliver a meaningful improvement in earnings. As anticipated, the redeployment
period resulted in a short-term impact on rental income, and together with a
one-off impact from our proactive decision to refinance and extend the term of
our debt, at what is now broadly in line with the incremental cost of debt,
resulted in EPRA earnings of £33.8 million, or 2.7 pence per share,
representing a 10% reduction compared with the prior period.
The portfolio continues to demonstrate strong operational performance. We
captured rental growth from our predominantly inflation-linked leases,
achieving an average annualised rental uplift of 3.8% from rent reviews
completed during the period. We remain focused on disciplined cost control,
and, supported by the savings achieved through internalisation, our EPRA cost
ratio reduced to 9.2%, down from 13.6% in the prior period.
The portfolio was valued at £2.1 billion (including our share of joint
venture and assets held for sale), delivering like ‑for-like valuation
growth of 1.3% over the six months. This compares favourably with the MSCI All
Property Capital Growth Index, which increased by 0.4%, and highlights the
quality and resilience of our assets. EPRA NTA increased by 0.5% to 87.5 pence
per share, with valuation gains across the existing portfolio partially offset
by purchaser costs associated with the £398 million of acquisitions
(including share of joint ventures). Total Accounting Return ("TAR") for the
period was 4.0%, with 88% of the return underpinned by income from a
high-quality tenant base.
Strengthening the balance sheet remains a core strategic objective. In July
2025, we successfully issued our debut £250 million unsecured bond, an
important milestone for the Company. The issuance attracted strong demand from
a broad range of institutional investors, with an orderbook that peaked at
over £985 million.
The actions taken over the past twelve months have positioned the Company
strongly for the next phase of growth. We remain focused on delivering a
sustainable and growing dividend and are pleased to confirm a 2% per annum
dividend increase for FY27 onwards.
Presentation of financial information
The condensed interim financial information is prepared under IFRS, where the
Group's interests in joint venture are shown as a single line item in the
income statement and balance sheet, and its subsidiaries are consolidated at
100 per cent. Internally, management reviews the Group's results on a basis
that adjusts for these forms of ownership to present a proportionate share.
The Group uses alternative performance measures including the European Public
Real Estate ("EPRA") Best Practice Recommendations ("BPR") to supplement its
IFRS measures as the Board considers that these measures give users of the
financial statements the best understanding of the underlying performance of
the Group's property portfolio. The EPRA measures are widely recognised and
used by public real estate companies and investors and seek to improve
transparency, comparability and relevance of published results in the sector.
Reconciliations between EPRA measures and the IFRS financial statements can be
found in notes 12 and 26 to the financial statements.
Summarised Financial results
The below table provides a summary of EPRA earnings on a proportionally
consolidated basis, being inclusive of the Group's share of the Joint
Venture's profit for the six months ended 31 December 2025.
Proportionally consolidated Six months to 31 December 2025 Six months to 31 December 2024 Change
(£'000) (£'000) (£'000)
Net rental income 56,570 57,829 (1,259)
Management fees 607 - 607
Net income 57,177 57,829 (652)
Administrative expenses (5,168) (7,575) 2,407
Net finance costs (18,358) (12,980) (5,378)
Exceptional items 184 113 71
EPRA earnings 33,835 37,387 (3,552)
Valuation surplus(1) 5,236 7,202 (1,966)
Fair value movement on derivatives (3,183) (8,320) 5,137
Exceptional items (184) (113) (71)
IFRS profit before tax 35,704 36,156 (452)
1. Change in fair value of investment properties and proportionate
share of change in fair value of Joint Venture assets and assets held for sale
Net rental income
The portfolio generated net rental income of £56.6 million for the six months
ended 31 December 2025 (31 December 2024: £57.8 million). The modest decrease
reflects the short‑term impact of redeploying the proceeds received
following completion of our joint venture in May 2025.
On a like‑for‑like basis, EPRA net rental income increased by 0.8% (31
December 2024: 2.1%). During the period, the Group completed 19 rent reviews,
representing an uplift of £1.5 million compared with previous passing rent,
or 4.9% (or 3.8% on an annualised basis). This increase more than offset the
rent reduction associated with the three lease renewals completed in February
2025.
Direct property expenditure remained stable at £0.3 million (31 December
2024: £0.3 million). The portfolio continues to deliver a strong
gross‑to‑net margin of 99.5% (31 December 2024: 99.4%), one of the highest
in the sector. This performance reflects the strength of our single‑let
strategy, strong covenant quality of our tenant base, and triple net lease
structure.
Administrative expenses and EPRA cost ratio
We remain focused on operational efficiency and disciplined cost management.
Supported by the significant cost savings delivered through internalisation,
administrative expenses reduced by £2.4 million, representing a 32% decrease
compared with the prior period.
These efficiencies contributed to a further improvement in our cost base, with
the EPRA cost ratio declining by 440 basis points to 9.2% for the period. We
remain firmly on track to achieve our target EPRA cost ratio of below 9%.
31 December 31 December
2025 2024
EPRA cost ratio including direct vacancy costs 9.2% 13.6%
EPRA cost ratio excluding direct vacancy costs 8.8% 13.3%
Net finance costs
Net finance costs (including our share of joint ventures) increased by £5.4
million to £18.4 million. This was primarily driven by an increase in the
weighted average cost of debt from 3.6% to 4.8%, alongside a £55.9 million
rise in the average drawn debt balance compared with the prior period.
We continue to actively manage our debt profile, and in July 2025 we took
advantage of favourable market conditions to issue our debut £250 million
unsecured bond. The resulting uplift in finance costs is expected to be a
one‑off impact in the current financial year. With our financing costs now
broadly aligned to prevailing market rates and supported by a diversified mix
of funding sources, we anticipate our medium‑term cost of debt to remain
within the 4.7% to 5.0% range.
EPRA earnings
The Company delivered EPRA earnings of £33.8 million for the six months ended
31 December 2025 (31 December 2024: £37.4 million). EPRA earnings per share
were 2.7 pence, compared with 3.0 pence in the prior period.
The reduction primarily reflects the timing of the redeployment of proceeds
received following completion of the joint venture, together with the one-off
increase in interest costs associated our proactive decision to refinance and
extend the term of our debt. These impacts have offset the cost savings
achieved from internalisation.
The Board remains confident in the Company's strategic direction and its
ability to generate sustainable long‑term value for shareholders.
A full reconciliation between IFRS and EPRA earnings can be found in note 12
of the Financial Statements.
EPRA net tangible assets and IFRS net assets
31 December 2025 30 June 2025
Proportionally consolidated £'000 £'000
Investment properties 1,818,494 1,618,169
Fair value of financial asset held at amortised cost 7,380 7,280
Total portfolio value 1,825,874 1,625,449
Assets held for sale 230,929 -
Bank and other borrowings (980,083) (603,602)
Cash 54,943 100,937
Other net liabilities (39,300) (34,711)
EPRA net tangible assets 1,092,363 1,088,073
Fair value of interest rate derivatives 5,054 11,224
Fair value adjustment for financial assets held at amortised cost 3,966 3,955
IFRS net assets 1,101,383 1,103,252
Movement in EPRA NTA per share Pence
EPRA NTA per share at 30 June 2025 87.1
EPRA earnings 2.7
Dividends paid (3.1)
Realised and unrealised gains 0.5
Other 0.3
EPRA NTA per share as at 31 December 2025 87.5
EPRA Net Tangible Assets ("EPRA NTA") remains the Group's primary net asset
measure, as it captures both income and capital returns while excluding the
fair value of interest rate derivatives and incorporating the revaluation to
fair value of investment properties held at amortised cost.
At 31 December 2025, EPRA NTA totalled £1,092 million, equivalent to 87.5
pence per share, representing a 0.5% increase since 30 June 2025. Realised and
unrealised gains from the investment property portfolio were largely offset by
purchaser costs associated with the £398 million 16 (#_ftn16) of grocery
real estate acquired during the period.
Including dividends paid, the Group generated a Total Accounting Return
("TAR") of 4.0%, compared with 4.1% in the prior period.
Portfolio Valuation
Our Portfolio, which includes share of joint ventures, the fair value
of financial assets held at amortised cost, and assets held for sale, was
valued at £2,057 million as set out below:
Movement in portfolio valuation £'000
Group opening property portfolio valuation 1,415,819
Property additions 300,013
Transfer to assets held for sale (224,980)
Capital expenditure 19,385
Revaluation movement 1,012
Foreign exchange movement 720
Group closing property portfolio valuation 1,511,969
Fair value of financial assets held at amortised cost 7,380
Share of investment properties held in joint venture 306,525
Assets held for sale 230,929
Total property portfolio value 2,056,803
Valuation yields remained broadly stable over the first six months of the
year, and the portfolio delivered like‑for‑like valuation growth of 1.3%,
comparing favourably with the MSCI All Property Capital Growth Index, which
recorded an increase of 0.4% over the same period.
Net Debt, Leverage and Financing
Adjusted net debt is a proportionally consolidated measure that includes the
Group's share of joint ventures and is defined as borrowings less cash and
cash equivalents.
The Group's adjusted net debt increased by £422 million during the first six
months of the year, closing at £925 million (30 June 2025: £503 million).
This increase was primarily driven by the redeployment of net proceeds
received from the transfer of eight supermarket assets into the Group's
strategic joint venture with Blue Owl in May 2025. Including post period-end
transactions, the pro‑forma loan‑to‑value (LTV) ratio is 43%.
The Group also considers net debt to EBITDA as a key performance indicator for
monitoring leverage. Including post‑period‑end transactions, the Group's
net debt to EBITDA ratio is 8.2x, although this is expected to reduce with the
benefit of a full period of income from properties acquired during the year.
The Group anticipates operating within a medium‑term target range of 7.0x to
8.0x.
Financing
31 Dec 2025 30 Jun 2025
Undrawn facilities(1) £173m £350m
Loan to value 43%(1) 31%
Net debt / EBITDA ratio (period-end) 8.2x(1) 5.1x
Weighted average cost of debt (at period end) 4.8% 4.2%
Interest cover 3.1x 3.8x
Average debt maturity 3.0 years 3.9 years
% of drawn debt which is fixed/hedged(1) 92% 100%
1. ( ) Including post period end transactions (and share of joint ventures)
The Group continued to actively manage its debt structure during the
six‑month period, executing a series of strategic financing transactions
across multiple markets. In July 2025, we successfully issued our debut £250
million unsecured bond, marking an important milestone for the Company. The
issuance attracted strong demand from a broad base of institutional investors,
with an order book that peaked at more than £985 million.
At the period end, the Group's weighted average debt maturity is 3.0 years.
Including post‑period‑end transactions, the Group had £228 million of
undrawn facilities and available cash, which we expect to deploy into the
Group's attractive pipeline of investment opportunities and to repay
near‑term maturing debt facilities.
The Group's interest rate exposure is mitigated through a combination of
fixed‑rate debt and derivative instruments, including interest rate swaps
and caps. 92% of the Group's drawn debt is fixed or hedged; this is expected
to increase to 100% following completion of the sale of the five supermarket
assets to the joint venture. Over the medium term, the Group expects its
weighted average cost of debt to range between 4.7% and 5.0%.
The Group continues to monitor compliance with its banking covenants and
maintains substantial headroom on both LTV and ICR metrics. As at 31 December
2025, property values would need to fall by approximately 20% before breaching
the gearing covenant, while net operating income would need to decline by 44%
before triggering an interest cover covenant breach.
The Company is committed to maintaining its current credit rating, and were
pleased to report that Fitch Ratings, as part of its annual review, reaffirmed
the Group's BBB+ rating with a stable outlook.
PRINCIPAL RISKS AND UNCERTAINTIES
The risk management framework is designed to identify, evaluate, and manage
risks in a manner consistent with the Group's strategic objectives. The Audit
and Risk Committee support the Board in its oversight of the Group's risk
management and internal control systems. It conducts regular reviews of the
Group's risk register as part of its oversight of risk management and internal
controls. All principal risks and uncertainties set out on pages 49 to 51 of
our 2025 Annual Report and Accounts remain relevant, with no significant
changes during the period. A small refinement has been made to the first risk
below that there can be no guarantee that the dividend will grow in line with
target, instead of inflation, to reflect the updated guidance of a target
minimum sustainable dividend uplift of 2% p.a. for FY27 onwards; this does not
materially alter the overall risk profile.
A summary of those principal risks and uncertainties is provided below:
· There can be no guarantee that the dividend will grow in line with target
· A significant fall in property valuations
· Use of floating rate debt will expose the business to underlying interest rate
movement
· Major event / business interruption
· The default of one or more of our grocery tenants
· Increased competition may impact the Group's ability to source assets
· Key person risk
· Cyber Security & Disaster Recovery
· Changes in regulatory policy could lead to our assets becoming unlettable
· We operate as a UK REIT and have a tax-efficient corporate structure, with
advantageous consequences for UK Shareholders. Any change to our tax status or
in UK tax legislation could affect our ability to achieve our investment
objectives and provide favourable returns to Shareholders
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm that, to the best of their knowledge, this set of
interim consolidated financial statements has been prepared in accordance with
IAS 34 as adopted by the United Kingdom and that the operating and financial
review included herein provides a fair review of the information required by
DTR 4.2.7 and DTR 4.2.8 of the Disclosure and Transparency Rules of the United
Kingdom's Financial Conduct Authority, namely:
· an indication of important events that have occurred during the
period and their impact on the interim consolidated financial statements and a
description of the principal risks and uncertainties for the remaining months
of the Group's financial year; and
· disclosures of any material related party transactions in the
period. These are included in Note 25.
A full list of Directors of the Company can be found at the end of this
interim report. Shareholder information is as disclosed on the Supermarket
Income REIT plc website.
For and on behalf of the Board
Nick Hewson
Chair
10 March 2026
INDEPENDENT REVIEW REPORT TO SUPERMARKET INCOME REIT PLC
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 31 December 2025 is not prepared, in
all material respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31
December 2025 which comprises the Interim Consolidated Statement of
Comprehensive Income, Interim Consolidated Statement of Financial Position,
Interim Consolidated Statement of Changes in Equity, Interim Consolidated Cash
Flow Statement and the related notes.
Basis for conclusion
We conducted our review in accordance with the International Standard on
Review Engagements (UK) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" ("ISRE (UK) 2410"). A
review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with International
Standards on Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410, however future events or conditions may cause the Group to
cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the Group's ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group
or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for conclusion paragraph of
this report.
Use of our report
Our report has been prepared in accordance with the terms of our engagement to
assist the Company in meeting the requirements of the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority and for
no other purpose. No person is entitled to rely on this report unless such a
person is a person entitled to rely upon this report by virtue of and for the
purpose of our terms of engagement or has been expressly authorised to do so
by our prior written consent. Save as above, we do not accept responsibility
for this report to any other person or for any other purpose and we hereby
expressly disclaim any and all such liability.
BDO LLP
Chartered Accountants
London, UK
10 March 2026
BDO LLP is a limited liability partnership registered in England and Wales
(with registered number OC305127).
InterIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six month period ended 31 December 2025
Notes Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Gross rental income 5 48,897 58,171 114,009
Service charge income 5 4,607 4,266 9,044
Service charge expense 6 (4,919) (4,608) (9,819)
Net Rental Income 48,585 57,829 113,234
Administrative and other expenses 7 (5,010) (7,575) (14,469)
Other income 15 1,214 - 305
Operating profit before changes in fair value of investment properties, share 44,789 50,254 99,070
of income from joint venture and loss on disposals
Changes in fair value of investment properties 14 5,820 7,202 28,001
Termination fee 25 - - (20,800)
Share of income from joint venture 15 2,940 - 1,540
Loss on disposal of investment properties - - (1,327)
Operating profit 53,549 57,456 106,484
Finance income 10 4,264 10,536 19,688
Finance expense 10 (19,272) (23,516) (46,673)
Changes in fair value of interest rate derivatives (2,837) (8,320)
20 (18,842)
Profit before taxation 35,704 36,156 60,657
Tax credit for the period 11 617 374 871
Profit for the period 36,321 36,530 61,528
Items to be reclassified to profit or loss in subsequent periods
Fair value movements of interest rate derivatives 20 - (730) (1,539)
Foreign exchange movement (19) 120 (144)
Total comprehensive income for the period 36,302 35,920 59,845
Total comprehensive income for the period attributable to ordinary 36,302 35,920 59,845
shareholders
Earnings per share - basic (pence) 2.9p 2.9p 4.9p
Earnings per share - diluted (pence) 12 2.9p 2.9p 4.9p
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2025
Notes Unaudited Audited Unaudited
31 December 2025 30 June 2025 31 December 2024
£'000 £'000 £'000
Non-current assets
Investment properties 14 1,511,969 1,415,819 1,763,040
Investment in joint venture 15 95,794 96,556 -
Financial asset at amortised cost 17 11,346 11,235 11,130
Interest rate derivatives 20 3,227 3,133 9,327
Deferred tax asset 1,627 1,011 514
Right of use asset 110 - -
Equipment 31 32 -
Total non-current assets 1,624,104 1,527,786 1,784,011
Current assets
Assets held for sale 16 230,929 - 62,950
Interest rate derivatives 20 1,827 8,091 13,071
Trade and other receivables 18 132,684 119,612 11,244
Cash and cash equivalents 48,036 95,281 40,631
Total current assets 413,476 222,984 127,896
Total assets 2,037,580 1,750,770 1,911,907
Non-current liabilities
Borrowings 21 781,080 603,602 664,700
Trade and other payables 19 3,545 1,672 1,118
Total non-current liabilities 784,625 605,274 665,818
Current liabilities
Borrowings 21 104,138 - 79,908
Deferred rental income 21,813 19,601 23,713
Trade and other payables 19 25,621 22,643 25,022
Total current liabilities 151,572 42,244 128,643
Total liabilities 936,197 647,518 794,461
Total net assets 1,101,383 1,103,252 1,117,446
Equity
Share capital 22 12,462 12,462 12,462
Share premium reserve 22 500,386 500,386 500,386
Capital reduction reserve 514,791 553,113 591,248
Share based payment reserve 167 16 -
Retained earnings 73,708 37,387 12,389
Cash flow hedge reserve 23 - - 809
Other reserves (131) (112) 152
Total equity 1,101,383 1,103,252 1,117,446
Notes Unaudited Audited Unaudited
31 December 2025 30 June 2025 31 December 2024
£'000 £'000 £'000
Net asset value per share - basic 26 88.4p 88.5p 89.7p
Net asset value per share - diluted 26 88.2p 88.4p 89.7p
EPRA Net tangible asset per share 26 87.5p 87.1p 87.6p
These unaudited condensed consolidated interim financial statements were
approved and authorised for issue by the Board of Directors on 10 March 2026
and were signed on its behalf by: Nick Hewson, Chair.
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six month period ended 31 December 2025 (unaudited)
Share capital Share premium reserve Other reserve Capital reduction reserve Share based payment reserve Retained Total
£'000 £'000 £'000 £'000 £'000 earnings £'000
£'000
As at 1 July 2025 12,462 500,386 (112) 553,113 16 37,387 1,103,252
Comprehensive income for
the period
Profit for the period - - - - - 36,321 36,321
Other comprehensive income - - - (19)
(19) - -
Total comprehensive income for the period - - (19) - - 36,321 36,302
Transactions with owners
Equity-settled share-based transactions - - - 151 - 151
-
Interim dividends paid - - - (38,322) - - (38,322)
As at 31 December 2025 12,462 500,386 (131) 514,791 167 73,708 1,101,383
For the year ended 30 June 2025 (audited)
Share capital Share premium reserve Cash flow hedge reserve Other reserve Capital reduction reserve Share based payment reserve Retained Total
£'000 £'000 £'000 £'000 £'000 £'000 earnings £'000
£'000
As at 1 July 2024 12,462 500,386 1,539 32 629,196 - (24,141) 1,119,474
Comprehensive income for the period:
Profit for the period - - - - - - 61,528 61,528
Recycled from comprehensive income to profit and loss - - (1,539) - - - (1,539)
-
Other comprehensive income - - - (144) - - - (144)
Total comprehensive income for the year - - (1,539) (144) - - 61,528 59,845
Transactions with owners
Equity-settled share-based transactions - - - - - 16 - 16
Interim dividends paid - - - - (76,083) - - (76,083)
As at 30 June 2025 12,462 500,386 - (112) 553,113 16 37,387 1,103,252
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six month period ended 31 December 2024 (unaudited)
Share capital Share premium reserve Cash flow hedge reserve Other reserve Capital reduction reserve Retained Total
£'000 £'000 £'000 £'000 £'000 earnings £'000
£'000
As at 1 July 2024 12,462 500,386 1,539 32 629,196 (24,141) 1,119,474
Comprehensive income for
the period
Profit for the period - - - - - 36,530 36,530
Recycled comprehensive loss to profit and loss - - (730) - - - (730)
Other comprehensive income - - - 120
120 - -
Total comprehensive income for the period - - (730) 120 - 36,530 35,920
Transactions with owners
Interim dividends paid - - - - (37,948) - (37,948)
As at 31 December 2024 12,462 500,386 809 152 591,248 12,389 1,117,446
INTERIM CONSOLIDATED CASH FLOW STATEMENT
For the six month period ended 31 December 2025
Notes Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Operating activities
Profit attributable to ordinary shareholders 36,321 36,530 61,528
Adjustments for:
Tax credit 11 (617) (374) (871)
Changes in fair value of interest rate derivatives measured at fair value 20 2,837 8,320 18,842
through profit and loss
Changes in fair value of Investment properties 14 (5,820) (7,202) (28,001)
Movement in rent smoothing and lease incentive adjustments 5 (891) (1,283) (2,315)
Amortisation of leasing fees 39 20 59
Finance income 10 (4,264) (10,536) (19,688)
Finance expense 10 19,272 23,516 46,673
Share of income from joint venture 15 (2,940) - (1,540)
Loss on disposal of investment property - - 1,327
Share based payment movement 151 - 16
Depreciation 7 - -
Foreign exchange movement 417 (40) (309)
Cash flows from operating activities before changes in working capital 44,512 48,951 75,721
Increase in trade and other receivables (4,705) (420) (4,234)
Increase/(decrease) in deferred rental income 2,212 (1,046) (5,156)
Decrease in trade and other payables (2,678) (699) (197)
Net cash flows from operating activities 39,341 46,786 66,134
Investing activities
Acquisition of equipment (4) - (32)
Acquisition of investment properties 14 (300,013) (49,700) (78,355)
Capitalised acquisition costs (19,753) (1,289) (4,102)
Disposal of investment properties - - 262,665
Receipts from other financial assets 17 145 145 290
Bank interest received 10 664 48 113
Joint venture loan interest received 808 - -
Investment in joint venture (841) - -
Loan to joint venture 15 (102,614) - -
Joint venture loans repaid 15 94,760 - -
Distributions received from joint venture 15 4,543 - -
Net cash flows (used in)/from investing activities (322,305) (50,796) 180,579
Financing activities
Borrowings drawn 264,310 217,843 371,305
Bond Issuance 250,000 - -
Borrowings repaid (232,981) (165,187) (463,635)
Loan arrangement fees paid (1,666) (1,418) (2,156)
Bank interest paid (13,230) (20,489) (44,404)
Settlement of interest rate derivatives 4,286 11,312 21,176
Sale of interest rate derivatives 6,039 - 3,249
Purchase of interest rate derivative (4,389) - (1,169)
Bank commitment fees paid (697) (356) (669)
Dividends paid to equity holders (35,953) (35,755) (73,820)
Net cash flows from/(used in) financing activities 235,719 5,950 (190,123)
Net movement in cash and cash equivalents for the period (47,245) 1,940 56,590
Cash and cash equivalents at the beginning of the period 95,281 38,691 38,691
Cash and cash equivalents at the end of 48,036 40,631 95,281
the period
Notes to the condensed set of financial statements for the six months ended 31
December 2025
1. Basis of preparation
General information
Supermarket Income REIT plc is a company registered in England & Wales
with its registered office at Level 19, The Shard, 32 London Bridge Street,
London, SE1 9SG. The principal activity of the Company and its subsidiaries
(the "Group") is to provide its shareholders with an attractive level of
income together with the potential for capital growth by investing in a
diversified portfolio of supermarket real estate assets in the UK and Europe.
The financial information set out in this report covers the six months to 31
December 2025, with comparative numbers amounts shown for the year to 30 June
2025 and the six months to 31 December 2024. These condensed interim financial
statements are unaudited and the financial information for the year ended 2025
contained herein does not constitute statutory accounts for as defined in
section 434 of the Companies Act 2006. The statutory accounts for the year
ended 30 June 2025 have been delivered to the Registrar of Companies. The
independent auditor's report on those accounts was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a statement
under sections 498(2) or 498(3) of the Companies Act 2006.
At 31 December 2025 the Group comprised of the Company and its wholly-owned
subsidiaries. The subsidiaries are incorporated across England & Wales,
Guernsey, Jersey and France.
The condensed consolidated interim financial statements have been prepared in
accordance with IAS 34 'Interim Financial Reporting' and also in accordance
with the measurement and recognition principles of UK-adopted international
accounting standards; they do not include all disclosures that would otherwise
be required in a complete set of financial statements and should be read in
conjunction with the 2025 annual report.
The accounting policies adopted in this report are consistent with those
applied in the Group's audited financial statements for the year ended 30 June
2025. The only additional accounting policy is as follows:
Assets held for sale
An asset will be classified as held for sale, in line with IFRS 5 'Non-Current
Assets Held for Sale and Discontinued Operations', where the asset is
available for immediate sale in its present condition and the sale is highly
probable. Fair value movement on initial classification as held for sale and
subsequent gains and losses on remeasurement are recognised in profit or loss.
The accounting policies applied in the preparation of this financial
information are expected to be consistently applied in the financial
statements for the year to 30 June 2026.
Accounting convention and currency
The condensed consolidated interim financial statements ("the financial
statements") have been prepared on a historical cost basis, except that
investment properties, assets held for sale and interest rate derivatives are
measured at fair value.
The financial statements are presented in Pounds Sterling, and all values are
rounded to the nearest thousand (£'000), except where otherwise indicated.
Pounds Sterling is the functional and presentational currency of the Group.
Euro denominated results of the French operation have been converted to
Sterling at the average exchange rate for the period of €1:£0.87, which is
considered not to produce materially different results from using the actual
rates at the date of the transactions. Period end balances have been converted
to sterling at the 31 December 2025 exchange rate of €1:£0.87.
The Directors are of the opinion that the Group is currently engaged in a
single segment business, being investment in supermarket property assets.
1. Basis of preparation (continued)
Going concern
In light of the current macroeconomic backdrop, the Directors have placed a
particular focus on the appropriateness of adopting the going concern basis in
preparing the Group's interim results for the six months ended 31 December
2025. In assessing the going concern basis of accounting the Directors have
had regard to the guidance issued by the Financial Reporting Council.
Liquidity
At 31 December 2025, the Group cash of £48.0 million and undrawn committed
facilities totalling £86.1 million with no capital commitments or contingent
liabilities.
At the date of signing, the Group has undrawn committed facilities of £172.9
million (including share of joint ventures) available following repayment of
£75 million of the unsecured RCF from the sale of assets into the Joint
Venture.
The Directors are of the belief that the Group continues to be well funded
during the going concern period with no concerns over its liquidity.
Refinancing events
At the date of signing the financial statements, the HSBC and SMBC facilities
fall due for repayment during the going concern period. The HSBC facility is
currently undrawn. It is intended that the £104.5 million will be paid down
in full utilising the Group's available cash facilities. The Group's lenders
have been supportive during the period and have expressed commitment to the
long-term relationship they wish to build with the Company.
Covenants
The Group's debt facilities include covenants in respect of LTV, interest
cover, unencumbered assets and priority debt.
The Directors have evaluated a number of scenarios as part of the Group's
going concern assessment and considered the impact of these scenarios on the
Group's continued compliance with debt covenants. The key assumptions that
have been sensitised within these scenarios are falls in rental income and
increases in administrative cost inflation.
As at the date of issuance of this consolidated financial information 100% of
contractual rent for the period has been collected. The Group benefits from a
secure income stream from its property assets that are let to tenants with
excellent covenant strength under long leases that are subject to upward only
rent reviews.
The list of scenarios is below and are all on top of the base case model which
includes prudent assumptions on valuations and cost inflation.
Scenario Rental Income Costs
Base case scenario (Scenario 1) 100% contractual rent received when due and rent reviews based on forward In line with Company FY26 budget.
looking inflation curve, capped at the contractual rate of the individual
leases.
Scenario 2 Rental income to fall by 20%. Costs expected to remain the same as the base case.
Scenario 3 Rental income expected to remain the same as the base case. 10% increases on base case costs to all administrative expenses.
1. Basis of preparation (continued)
The Group continues to maintain covenant compliance for its LTV and ICR
thresholds throughout the going concern assessment period under each of the
scenarios modelled. The lowest amount of ICR headroom experienced in the
worst-case stress scenarios was 18%. Property values would have to fall by
more than 19% before LTV covenants are breached against 31 December 2025 Group
valuations.
Having reviewed and considered three modelled scenarios, the Directors
consider that the Group has adequate resources in place for at least 12 months
from the date these interim results have been authorised for issue and have
therefore adopted the going concern basis of accounting in preparing the
interim financial statements.
2. Significant accounting judgements, estimates and assumptions
There have been no new or material revisions to the nature and amount of
judgements and estimates reported in the Annual Report 2025, other than
changes to certain assumptions applied in the valuation of properties. Details
of the key assumptions applied at 31 December 2025 are set out in Note 14. For
the acquisition during the period the concentration test (as defined in the
Annual Report 2025) was applied and met resulting it being accounted for as an
asset purchase.
3. Summary of material accounting policies
The principal accounting policies adopted in this report are consistent with
those applied in the Group's audited financial statements for the year ended
30 June 2025 and are expected to be consistently applied during the year
ending 30 June 2026.
3.1 New standards issued and effective
There were a number of new standards and amendments to existing standards
which are required for the Group's accounting period beginning on 1 July 2025.
The following amendments are effective for the period beginning 1 July 2025:
- Lack of exchangeability (Amendments to IAS 21);
There was no material effect from the adoption of the above-mentioned
amendments to IFRS effective in the period. They have no significant impact to
the Group as they are either not relevant to the Group's activities or require
accounting which is already consistent with the Group's current accounting
policies.
3.2 New standards issued but not yet effective
The following are new standards, interpretations and amendments, which are not
yet effective, and have not been early adopted in these financial statements,
that will or may have an effect on the Group's future financial statements:
- Amendments to the Classification and Measurement of Financial
Instruments (Amendments to IFRS 9 and IFRS 7)
- IFRS 18 Presentation and Disclosure in Financial Statements
The Group expects to review and determine the impact of the new standards on
the Group's reporting and financial statements over the coming financial year.
A number of new standards and amendments to standards and interpretations have
been issued but are not yet effective for the current accounting period. Even
though IFRS 18 will not have any effect on the recognition and measurement of
items in the consolidated financial statements, it is expected to have a
significant effect on the presentation and disclosure of certain items. These
changes include categorisation and sub-totals in the statement of profit or
loss, aggregation/disaggregation and labelling of information, and disclosure
of management-defined performance measures.
4. Operating Segments
Operating segments are identified on the basis of internal financial reports
about components of the Group that are regularly reviewed by the chief
operating decision maker (which in the Group's case is the Board) in order to
allocate resources to the segments and to assess their performance.
The internal financial reports contain financial information at a Group level
as a whole and there are no reconciling items between the results contained in
these reports and the amounts reported in the consolidated financial
statements.
The Group's property portfolio comprises investment property. The Board
considers that all the properties have similar economic characteristics.
Therefore, in the view of the Board, there is one reportable segment.
The geographical split of revenue and material applicable non-current assets
was:
Revenue Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
UK 44,504 56,034 108,593
France 4,393 2,137 5,416
48,897 58,171 114,009
Investment Properties
UK 1,312,960 1,700,700 1,320,430
France 199,009 62,340 95,389
1,511,969 1,763,040 1,415,819
Assets held for sale
UK 230,929 62,950 -
France - - -
230,929 62,950 -
5. Gross rental income
Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Rental income - freehold property 34,124 32,348 64,172
Rental income - long leasehold property 14,773 25,823 49,837
Gross rental income 48,897 58,171 114,009
Property insurance recoverable 545 514 980
Property tax recoverable 358 285 677
Service charge recoverable 3,704 3,467 7,387
Total property insurance and service 4,607 4,266 9,044
charge income
Total property income 53,504 62,437 123,053
Included within rental income is a £751,000 (six months to 31 December 2024:
£960,000; year to 30 June 2025: £1,909,000) rent smoothing adjustment that
arises as a result of IFRS 16 'Leases' requiring that rental income in respect
of leases with rents increasing by a fixed percentage be accounted for on
straight-line basis over the lease term. During the period this resulted in an
increase in rental income and an offsetting entry being recognised in profit
or loss as an adjustment to the investment property revaluation.
5. Gross rental income (continued)
Also included in rental income is a £140,000 (six months to 31 December 2024:
£323,000; year to 30 June 2025: £406,000) from lease incentives. Tenant
lease incentives are recognised on a straight-line basis over the lease term
as an adjustment to rental income. During the period this resulted in an
increase in rental income and an offsetting entry being recognised in profit
or loss as an adjustment to the investment property revaluation.
On an annualised basis, rental income comprises £42,245,000 (June 2025:
£41,887,000) relating to the Group's largest tenant and £30,474,000 (June
2025: £31,032,000) relating to the Group's second largest tenant. There was
one further tenant representing more than 10% of annualised gross rental
income during period being £14,079,000 (June 2025: No other tenant).
6. Service charge expense
Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Property insurance expenses 563 566 1,139
Property tax expense 455 285 680
Service charge expenses 3,901 3,757 8,000
Total property insurance and service 4,919 4,608 9,819
charge expenses
7. Administrative and other expenses
Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Investment Adviser fees - 4,636 6,793
Non-executive directors' remuneration 313 235 499
Executive directors and staff costs 1,513 - 555
Corporate administration fees 379 591 1,212
Legal and professional fees 1,202 900 2,880
Other administrative expenses 1,603 1,213 2,530
Total administrative and other expenses 5,010 7,575 14,469
In March 2025, the Company internalised its previously outsourced management
function, there is therefore no investment advisor fee in the current period.
8. Directors' remuneration
The Board of Directors are the key management personnel of the Company.
The Non-Executive Directors are appointed under letters of appointment for
service while executive Directors are under an employment contract. Directors'
remuneration was as follows:
Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Non-Executive Director's fees 274 211 445
National insurance 39 24 54
Executive Director's Costs:
Wages and Salaries 325 - 168
National Insurance 53 - 18
Pension Costs 26 - 14
Total Directors' remuneration 717 235 699
9. Staff costs
Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Wages and Salaries 1,095 - 444
Social security costs 154 - 54
Pension Costs 113 - 41
Equity-settled share-based payments 151 - 16
Total staff costs 1,513 - 555
In March 2025, the Group internalised its previously outsourced management
function, there is therefore no staff costs in the six months ended 31
December 2024.
The staff costs above, which includes the salaries of the Executive Directors,
are shown within administrative and other expenses in the consolidated
statement of comprehensive income.
The average number of employees including Executive Directors for the period
was 18 (30 June 2025: since 25 March 2025, 15).
Equity-settled share option plan
The Group established a long-term incentive plan following consultation with a
number of its largest shareholders and as outlined in the Directors'
Remuneration Policy in the circular published on 4 March 2025 in relation to
the Internalisation of the Company's management function. Employees were
granted their awards on 17 June 2025 and the vesting period is to the
announcement of the 2028 results expected to be mid-September 2028.
Each employee share option converts into one ordinary share of the parent
company on exercise. No amounts are paid or payable by the recipient on
receipt of the option. The options carry neither rights to dividends nor
voting rights. Options may be exercised at any time from the date of vesting
to the date of their expiry.
The number of options granted is calculated in accordance with the
performance-based formula approved by shareholders at the previous annual
general meeting and is subject to approval by the Remuneration Committee. The
formula rewards employees to the extent of the Group's and the individual's
achievement judged against both qualitative and quantitative criteria from the
following conditions:
· Relative total shareholder return;
· Improvement in earnings per share;
· Improvement in total accounting return;
· Personal performance
Details of the share options outstanding during the period are as follows:
31 December 2025 30 June 2025
Number of share options Weighted average exercise price Number of share options Weighted average exercise price
Outstanding at the beginning of the period 2,331,582 £0.01 - -
Granted during the period - - 2,331,582 £0.01
Outstanding at the period end 2,331,582 £0.01 2,331,582 £0.01
Exercisable at the period end - - - -
9. Staff costs (continued)
An independent valuation of the fair value of these shares was carried out at
the grant date. The valuation was prepared in accordance with International
Financial Reporting Standard 2 ("IFRS 2"): Share-based payments.
For the market condition of total shareholder return a Stochastic model was
used and the Black-Scholes model used for the non-market conditions. The
assumptions used are as follows:
Date of grant 17 June 2025
Share price at grant £0.83
Exercise price £0.01
Expected volatility 25.66%
Expected term 3.26 years
Risk free rate 3.94%
Expected dividend yield 0%
Fair value (market conditions) £0.4543
Fair value (non-market conditions) £0.8299
Awards to Executive Directors have a holding period of two years from vesting
and a Chaffe model was used to estimate a discount for the lack of
marketability ("DLOM"). The assumptions used are as follows:
Date of grant 17 June 2025
Share price at grant £0.83
Exercise price £0.83
Expected volatility 23.63%
Expected term 2.0 years
Risk free rate 4.07%
Expected dividend yield 0%
Fair value (market conditions) £0.4322
Fair value (non-market conditions) £0.7894
DLOM 9.21%
The Board have made an assessment of the non-market performance conditions as
at 31 December 2025, with any adjustment to expected value being recognised in
the share-based payment expense in the statement of comprehensive income.
10. Finance Income and expense
Finance income
Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Interest received on bank deposits 664 48 113
Income from financial assets held at amortised cost 257 252 502
Interest from loans to joint venture 740 - 605
Finance income on settlement of interest rate derivatives 2,603 10,236 18,468
Total finance income 4,264 10,536 19,688
Finance expense
Interest payable on borrowings 17,570 22,040 43,557
Bank and other interest 4 - -
Commitment fees payable on bank borrowings 821 433 747
Amortisation of loan arrangement fees 877 1,043 2,369
Total finance expense 19,272 23,516 46,673
The above finance expense includes the following in respect of liabilities not
classified as fair value through profit or loss:
Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Total interest expense on financial liabilities held at amortised cost 18,447 23,083 45,926
Fee expense not part of effective interest rate for financial liabilities held 825 433 747
at amortised cost
Total finance expense 19,272 23,516 46,673
11. Taxation
a) Tax credit in profit or loss Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
UK corporation tax - - -
France corporation tax - - -
UK deferred tax - - -
France deferred tax (617) (374) (871)
(617) (374) (871)
b) Total tax credit
Tax credited in profit and loss as per the above (617) (374) (871)
Share of tax expense of equity accounted joint venture
- - -
Total tax credit (617) (374) (871)
The Company and its subsidiaries operate as a UK Group REIT. Subject to
continuing compliance with certain rules, the UK REIT rules exempt the profits
of the Group's property rental business from UK corporation tax. To operate as
a UK Group REIT a number of conditions had to be satisfied in respect of the
Company, the Group's qualifying activity and the Group's balance of business.
Since 21 December 2017 the Group has met all such applicable conditions.
11. Taxation continued
The reconciliation of the profit before tax multiplied by the standard rate of
corporation tax for the period of 25% (30 June 2025: 25% 31 December 2024:
25%) to the total tax credit is as follows:
c) Reconciliation of the tax credited for the period Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Profit on ordinary activities before taxation 35,704 36,156 60,657
Theoretical tax at UK standard corporation tax rate Effects of: 8,926 9,039 15,164
Investment property revaluation not subject (1,455) (1,801) (2,290)
to taxation
Financial instruments revaluation not taxable 709 2,080 -
Disposal of interest rate derivative - - 332
Residual business losses/ (income) 170 (13) 5,178
Deferred tax assets not recognised (617) (374) (871)
REIT exempt income (8,350) (9,305) (18,384)
Total tax credit for the period (617) (374) (871)
12. Earnings per share
Earnings per share ("EPS") amounts are calculated by dividing the profit or
loss for the period attributable to ordinary equity holders of the Company by
the weighted average number of ordinary shares in issue during the period.
As the LTIPs issued in the prior year are dilutive instruments, we show the
effect of these in diluted EPRA EPS, IFRS EPS and Headline EPS.
The European Public Real Estate Association ("EPRA") publishes guidelines for
calculating on a comparable basis. EPRA EPS is a measure of EPS designed by
EPRA to enable entities to present underlying earnings from core operating
activities, which excludes fair value movements on investment properties and
derivatives and is adjusted for non-operating or exceptional items.
The reconciliation of IFRS Earnings and EPRA Earnings is shown below:
Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Net income attributable to ordinary shareholders 36,321 36,530 61,528
EPRA adjustments:
Changes in fair value of investment properties (5,820) (7,202) (28,001)
Changes in interest rate derivatives measured at fair value through profit and 2,837 8,320 18,842
loss
Loss on disposal of investment properties - - 1,327
Group share of changes in fair value of joint venture investment properties 930 - (468)
and derivatives
Deferred tax credit (617) (374) (871)
Non-operating and exceptional items
Restructuring costs in relation to the acceleration of unamortised arrangement 236
fees
- -
Termination fee - - 20,800
Internalisation costs 184 - 634
Fees for listing on the JSE - 113 192
EPRA earnings 33,835 37,387 74,219
Number(1) Number(1) Number(1)
Weighted average number of ordinary shares - Basic 1,246,239,185 1,246,239,185 1,246,239,185
Weighted average number of ordinary shares - Diluted 1,248,037,739 1,246,239,185 1,246,328,616
(1) Based on the weighted average number of ordinary shares in issue
Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
Pence per share Pence per share Pence per share
Basic and Diluted EPS 2.9 2.9 4.9
EPRA adjustments:
Changes in fair value of investment properties (0.5) (0.6) (2.2)
Changes in fair value of interest rate derivatives measured at fair value 0.2 0.7 1.5
through profit and loss
Loss on disposal of investment properties - - 0.1
Group share of changes in fair value of joint venture investment properties 0.1 - -
and derivatives
Deferred tax credit - - -
Non-operating and exceptional items
Restructuring costs in relation to the acceleration of unamortised arrangement - - -
fees
Termination fee - - 1.7
Internalisation costs - - -
Fees for listing on the JSE - - -
EPRA EPS - Basic 2.7 3.0 6.0
EPRA EPS - Diluted 2.7 3.0 6.0
Headline Earnings per share
The JSE listing requirements mandate the calculation of headline earnings (In
accordance with Circular 1/2023 issued by the South African Institute of
Chartered Accountants) and disclosure of a detailed reconciliation of headline
earnings to the earnings numbers used in the calculation of basic earnings per
share in accordance with the requirements of IAS 33 Earnings per share.
Disclosure of headline earnings is not a requirement of IFRS.
Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Net income attributable to ordinary shareholders 36,321 36,530 61,528
Headline earnings adjustments:
Changes in fair value of investment properties (5,820) (7,202) (28,001)
Loss on disposal of investment properties - - 1,327
Group share of changes in fair value of joint venture investment properties
and derivatives
930 - (468)
Headline earnings 31,431 29,328 34,386
Changes in interest rate derivatives measured at fair value through profit and 2,837 8,320 18,842
loss
Deferred tax credit (617) (374) (871)
Restructuring costs in relation to the acceleration of unamortised arrangement - - 236
fees
Internalisation costs 184 - 21,434
Fees for listing on the JSE - 113 192
EPRA earnings 33,835 37,387 74,219
Weighted average number of ordinary shares - Basic 1,246,239,185 1,246,239,185 1,246,239,185
Weighted average number of ordinary shares - Diluted 1,248,037,739 1,246,239,185 1,246,328,616
Earnings per share - basic 2.9 2.9 4.9
Earnings per share - diluted 2.9 2.9 4.9
Headline earnings per share - basic 2.5 2.4 2.8
Headline earnings per share - diluted 2.5 2.4 2.8
EPRA earnings per share - basic 2.7 3.0 6.0
EPRA earnings per share - diluted 2.7 3.0 6.0
13. Dividends
Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Amounts recognised as distributions to ordinary Shareholders in the period:
Dividends 38,322 37,948 76,083
On 3 July 2025, the Board declared a fourth interim dividend for the year
ended 30 June 2025 of 1.53 pence per share, which was paid on 22 August 2025
to shareholders on the register on 25 July 2025. This was not included as a
liability as at 30 June 2025.
On 2 October 2025 the Board declared a first interim dividend for the year
ending 30 June 2026 of 1.545 pence per share, which was paid on 21 November
2025 to shareholders on the register on 24 October 2025.
On 8 January 2026, the Board declared a second interim dividend for the year
ending 30 June 2026 of 1.545 pence per share, which was paid on 27 February
2026 to shareholders on the register on 30 January 2025. This has not been
included as a liability as at 31 December 2025.
14. Investment Properties
In accordance with IAS 40 'Investment Property', the Group's investment
properties have been independently valued at fair value by Cushman &
Wakefield, an accredited independent valuer with a recognised and relevant
professional qualification and with recent experience in the locations and
categories of the investment properties being valued. The valuations have been
prepared in accordance with the RICS Valuation - Global Standards (the 'Red
Book') and incorporate the recommendations of the International Valuation
Standards Committee which are consistent with the principles set out in IFRS
13.
The independent valuer in forming its opinion on valuation makes a series of
assumptions. All the valuations of the Group's investment property at 31
December 2025 are classified as 'level 3' in the fair value hierarchy defined
in IFRS 13. The valuations are ultimately the responsibility of the Directors.
Accordingly, the critical assumptions used in establishing the independent
valuation are reviewed by the Board.
Freehold Long Leasehold £'000 Total
£'000
£'000
At 1 July 2025 901,339 514,480 1,415,819
Property additions 300,013 - 300,013
Capitalised acquisition costs 19,383 2 19,385
Revaluation movement (5,496) 6,508 1,012
Transfers to assets held for sale (93,170) (131,810) (224,980)
Currency exchange movement 720 - 720
Valuation at 31 December 2025 1,122,789 389,180 1,511,969
At 1 July 2024 972,016 796,200 1,768,216
Property additions 28,290 49,700 77,990
Capitalised acquisition costs 2,977 1,151 4,128
Disposals into joint venture (52,000) (351,325) (403,325)
Other disposals (63,500) - (63,500)
Revaluation movement 11,976 18,754 30,730
Currency exchange movement 1,580 - 1,580
Valuation at 30 June 2025 901,339 514,480 1,415,819
At 1 July 2024 972,016 796,200 1,768,216
Transfer from Leasehold to Freehold 23,030 (23,030) -
Property additions - 49,700 49,700
Capitalised acquisition costs 15 1,148 1,163
Revaluation movement 8,369 222 8,591
Transfers to assets held for sale (62,950) - (62,950)
Currency exchange movement (1,680) - (1,680)
Valuation at 31 December 2024 938,800 824,240 1,763,040
14. Investment Properties (continued)
Reconciliation of Investment Property to Independent Property Valuation Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Investment Property at fair value per Group Statement of Financial Position 1,511,969 1,763,040 1,415,819
Market Value of Property classified as Financial Assets held at amortised cost 7,380 7,200 7,280
(Note 17)
Market value of property held as Asset held for sale 225,300 62,950 -
Total Independent Property Valuation 1,744,649 1,833,190 1,423,099
Included within the carrying values of investment properties at 31 December
2025 is £12,865,000 (six months to 31 December 2024: £11,880,000, year to 30
June 2025: £12,113,000) in respect of the smoothing of fixed contractual rent
uplifts as described in Note 5. The difference between rents on a
straight-line basis and rents receivable is included within the carrying value
of the investment properties but does not increase that carrying value over
fair value.
Included within the carrying values of investment properties at 31 December
2025 is £2,218,000 (six months to 31 December 2024: £1,462,000, year to 30
June 2025: £1,751,000) in respect of the lease incentives with tenants in the
form of rent free debtors as described in Note 5 and capitalised letting fees.
The effect of these adjustments on the revaluation movement for the period is
as follows:
Unaudited Unaudited Audited
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Revaluation movement per above 1,012 8,591 30,730
Rent smoothing adjustment (Note 5) (751) (960) (1,909)
Movements in Lease Incentives (307) (323) (405)
Movements in capitalised letting fees (162) (106) (280)
Valuation movement for assets held for sale 5,949 - -
Foreign exchange movement through OCI 79 - (135)
Change in fair value recognised in profit or loss 5,820 7,202 28,001
As at the period end, the Group had agreed to transfer the five of the Direct
portfolio assets into the Joint Venture by way of a corporate sale. These are
deemed to be assets held for the sale and valued at the agreed sale price less
costs to sell. See note 16 for more information.
Valuation techniques and key unobservable inputs
Valuation techniques used to derive fair values
The valuations have been prepared on the basis of market value which is
defined in the RICS Valuation Standards as 'the estimated amount for which an
asset or liability should exchange on the date of the valuation between a
willing buyer and a willing seller in an arm's length transaction after proper
marketing wherein the parties had each acted knowledgeably, prudently and
without compulsion'. Market value as defined in the RICS Valuation Standards
is the equivalent of fair value under IFRS.
14. Investment Properties (continued)
Unobservable inputs
Significant unobservable inputs include: the estimated rental value ("ERV")
based on market conditions prevailing at the valuation date and the equivalent
yield (defined as the weighted average of the net initial yield and
reversionary yield). Other unobservable inputs include but are not limited to
the future rental growth - the estimated average increase in rent based on
both market estimations and contractual situations and the physical condition
of the individual properties determined by inspection.
A decrease in ERV would decrease fair value. A decrease in the equivalent
yield would increase the fair value.
Sensitivity of measurement of significant unobservable inputs
The determination of the valuation of the Group's investment property
portfolio is open to judgements and is inherently subjective by nature.
Sensitivity analysis - impact of changes in net initial yields and rental
values
Six months to 31 December 2025 UK France
Total
Fair value* £1,538.3m £199.0m
£1,737.3m
Range of Net Initial Yields 5.0-7.7% 4.5-8.1% 4.5-8.1%
Range of Rental values (passing rents or ERV as relevant) of Group's £0.1-£5.4m £0.1-0.9m £0.1m-£5.4m
Investment Properties
Weighted average of Net Initial Yields 5.8% 6.6% 5.9%
Weighted average of Rental values (passing rents or ERV as relevant) of £2.7m £0.4m £2.7m
Group's Investment Properties
Six months to 31 December 2024 UK France
Total
Fair value* £1,763.7m £62.3m
£1,826.0m
Range of Net Initial Yields 4.5%-8.3% 5.9% - 6.6% 4.5% - 8.3%
Range of Rental values (passing rents or ERV as relevant) of Group's £0.3m - £5.3m £0.6m - £0.8m £0.3m - £5.3m
Investment Properties
Weighted average of Net Initial Yields 6.0% 6.3% 6.0%
Weighted average of Rental values (passing rents or ERV as relevant) of £2.9m £0.7m £2.9m
Group's Investment Properties
Year ended 30 June 2025 UK France
Total
Fair value £1,320.4m £95.4m
£1,415.8m
Range of Net Initial Yields 5.0%-7.9% 5.9%-7.1% 5.0%-7.9%
Range of Rental values (passing rents or ERV as relevant) of Group's £0.3m-£5.1m £0.6m-£0.9m £0.3m-£5.1m
Investment Properties
Weighted average of Net Initial Yields 5.8% 6.5% 5.8%
Weighted average of Rental values (passing rents or ERV as relevant) of £2.7m £0.7m £2.9m
Group's Investment Properties
*Inclusive of asset held for sale
14. Investment Properties (continued)
The table below analyses the sensitivity on the fair value of investment
properties for changes in rental values and net initial yields:
+2% -2% +0.5% Net Initial Yield -0.5% Net Initial Yield
Rental value £m Rental value £m £m £m
Increase/(decrease) in the fair value of investment properties as at 31 34.8 (34.8) (137.3) 163.4
December 2025
Increase/(decrease) in the fair value of investment properties as at 31 36.5 (36.5) (141.3) 167.6
December 2024
Increase/(decrease) in the fair value of investment properties as at 30 June 28.3 (28.3) (112.9) 134.5
2025
15. Investment in Joint Venture
As at 31 December 2025 the Group has one joint venture investment. On the 16
May 2025, the Group entered into a joint venture agreement with Blue Owl. The
JV was seeded by the Group with eight of the Group's portfolio assets valued
at £403.3 million being transferred into a new joint venture structure
summarised below. Blue Owl then purchased 50% of the net assets for a
consideration of £200.4 million.
Due to the joint control of the arrangement between the Group and Blue Owl,
this is deemed to be a joint venture under IFRS 11.
The structure contained loans due from the property bearing companies to the
partners totalling £215.6 million, of which 50% of these were purchased by
Blue Owl on their purchase of the joint venture structure.
In June 2025, the Joint Venture completed a new £215.0 million secured term
loan, through a banking syndicate comprising Barclays, HSBC, ING and SMBC. The
interest-only Facility has a maturity of three years, with two further
one-year extension options at the lenders' discretion. The facility was priced
at a margin of 1.50% above SONIA and hedged at an all in rate of 5.10%.
During the period the facility was drawn and used to repay £189.5 million of
the above JV partner loans; the Group's share being £94.8 million.
In November 2025 the Joint Venture acquired ten Asda stores in a sale and
leaseback transaction for £196.2 million (excluding acquisition costs), this
was funded by the Group via interest bearing loans of £103.2 million.
It was also agreed for five of the current direct portfolio to be sold into
the joint venture see note 27 for more details.
The Group earns a management fee of 0.6% per annum for the ongoing management
of Blue Owl's interest in the JV. During the period the Group earnt £0.6
million in net management fees.
The joint venture ownership structure as at 31 December 2025 is summarised
below:
Entity Partner Address and principal Ownership
place of business
Jersey
Arthur JV Limited Arthur UK 22 Grenville Street, St Helier, JE4 8PX 50% owned by the Group
Holdco Limited
Arthur Midco Limited 22 Grenville Street, St Helier, JE4 8PX 100% owned by Arthur JV Limited
Olympus Midco Limited 4th Floor, St Paul's Gate, 22-24 New Street, 100% owned Arthur JV Limited
St Helier, JE1 4TR
Olympus II Midco Limited 4th Floor, St Paul's Gate, 22-24 New Street, 100% owned Arthur JV Limited
St Helier, JE1 4TR
Olympus Propco 4 Limited 4th Floor, St Paul's Gate, 22-24 New Street, 100% owned Olympus Midco Limited
St Helier, JE1 4TR
Olympus Propco 6 Limited 4th Floor, St Paul's Gate, 22-24 New Street, 100% owned Olympus Midco Limited
St Helier, JE1 4TR
Olympus Propco 7 Limited 4th Floor, St Paul's Gate, 22-24 New Street, 100% owned Olympus Midco Limited
St Helier, JE1 4TR
Olympus Propco 10 Limited 4th Floor, St Paul's Gate, 22-24 New Street, 100% owned Olympus Midco Limited
St Helier, JE1 4TR
Olympus Propco 11 Limited 4th Floor, St Paul's Gate, 22-24 New Street, 100% owned Olympus Midco Limited
St Helier, JE1 4TR
Olympus Propco 12 Limited 4th Floor, St Paul's Gate, 22-24 New Street, 100% owned Olympus Midco Limited
St Helier, JE1 4TR
Olympus Propco 14 Limited 4th Floor, St Paul's Gate, 22-24 New Street, 100% owned Olympus Midco Limited
St Helier, JE1 4TR
Olympus Propco 16 Limited 4th Floor, St Paul's Gate, 22-24 New Street, 100% owned Olympus Midco Limited
St Helier, JE1 4TR
Olympus Propco 18 Limited 4th Floor, St Paul's Gate, 22-24 New Street, 100% owned Olympus Midco Limited
St Helier, JE1 4TR
Olympus Propco 20 Limited 4th Floor, St Paul's Gate, 22-24 New Street, 100% owned Olympus Midco Limited
St Helier, JE1 4TR
Guernsey
The Huddersfield Unit Trust Royal Chambers, St Julian's Avenue, St Peter Port, GY1 4HP 100% owned by Arthur Midco Limited
United Kingdom
Supermarket Income Investments Level 19, The Shard, 32 London Bridge Street, London, SE1 9SG 100% owned by Arthur Midco Limited
UK (No4) Limited
Supermarket Income Investments Level 19, The Shard, 32 London Bridge Street, London, SE1 9SG 100% owned by Arthur Midco Limited
UK (No6) Limited
Supermarket Income Investments Level 19, The Shard, 32 London Bridge Street, London, SE1 9SG 100% owned by Arthur Midco Limited
UK (No9) Limited
Supermarket Income Investments Level 19, The Shard, 32 London Bridge Street, London, SE1 9SG 100% owned by Arthur Midco Limited
UK (No28) Limited
Supermarket Income Investments Level 19, The Shard, 32 London Bridge Street, London, SE1 9SG 100% owned by Arthur Midco Limited
UK (No43) Limited
Supermarket Income Investments Level 19, The Shard, 32 London Bridge Street, London, SE1 9SG 100% owned by Arthur Midco Limited
UK (No47) Limited
Supermarket Income Investments Level 19, The Shard, 32 London Bridge Street, London, SE1 9SG 100% owned by Arthur Midco Limited
UK (No48) Limited
Supermarket Income Investments Level 19, The Shard, 32 London Bridge Street, London, SE1 9SG 100% owned by Arthur Midco Limited
UK (No50) Limited
Supermarket Income Investments Level 19, The Shard, 32 London Bridge Street, London, SE1 9SG 100% owned by Arthur Midco Limited
UK (No51) Limited
Supermarket Income Nominee 1 Limited Level 19, The Shard, 32 London Bridge Street, London, SE1 9SG 100% owned by Arthur Midco Limited
Supermarket Income Nominee 2 Limited Level 19, The Shard, 32 London Bridge Street, London, SE1 9SG 100% owned by Arthur Midco Limited
Unaudited Audited
31 December 2025 30 June 2025
£'000 £'000
Opening balance 96,556 -
Investment in Joint Venture 841 95,016
Group's share of profit after tax 2,940 1,540
Distributions (4,543) -
Closing balance 95,794 96,556
The joint venture entities have a 31 December year end. For accounting
purposes consolidated management accounts have been prepared for the joint
venture for the period from acquisition to 31 December 2025 using accounting
policies that are consistent with those of the Group.
Arthur JV Limited's share of the aggregate amounts recognised in the
consolidated statement of comprehensive income and consolidated statement of
financial position are as follows:
6 months to 16 May to
30 June
31 December 2025
2025
£'000
£'000
Net Rental income 15,967 3,613
Administrative and other expenses (1,529) (361)
Operating profit 14,438 3,252
Change in fair value of investment properties (1,168) 1,022
Changes in fair value of derivatives (689) -
Finance income 450 22
Finance expense (7,151) (1,217)
Profit before taxation 5,880 3,079
Tax charge for the period - -
Profit for the period 5,880 3,079
Group's share of JV's profit for the period 2,940 1,540
As at 31 December 2025 As at
30 June 2025
£'000
£'000
Non-current assets
Investment properties 613,050 404,700
Total non-current assets 613,050 404,700
Current assets
Trade and other receivables 609 -
Interest rate derivatives 74 -
Cash and cash equivalents 13,814 11,311
Total current assets 14,497 11,311
Total assets 627,547 416,011
Current liabilities
Deferred rental income 6,349 5,865
Loans due to JV partners 233,631 216,845
Trade and other payables 11,099 4,460
Total current liabilities 251,079 227,170
Non-current liabilities
Bank borrowings 189,731 -
Interest rate derivatives 557 -
Total non-current liabilities 190,288 -
Total liabilities 441,367 227,170
Net assets 186,180 188,841
Group's share of the JV's net assets 93,090 94,421
16. Asset held for sale
Five of the Group's Investment properties are considered to meet the
conditions relating to assets held for sale, as per IFRS 5: Non-current Assets
Held for Sale and Discontinued Operations. The assets were sold post period
end as shown in Note 27. Assets held for sale are disclosed at their fair
value less costs to sale, this is reflective of the post period end sale price
less costs to sell.
The fair value of the properties, and its comparative value, is disclosed in
the table below along with associated assets and liabilities:
Unaudited Audited Unaudited
31 December 2025 30 June 2025 31 December 2024
£'000 £'000 £'000
Assets held for sale 230,929 - 62,950
230,929 - 62,950
17. Financial assets at amortised cost
Unaudited Audited Unaudited
31 December 2025 30 June 2025 31 December 2024
£'000 £'000 £'000
At start of period 11,235 11,023 11,023
Interest income recognised in profit and loss 256 502 252
Lease payments received during the period (145) (290) (145)
At end of period 11,346 11,235 11,130
On 8 June 2022, the Group acquired an Asda store in Carcroft, via a sale and
leaseback transaction for £10.6 million, this has been recognised in the
Statement of Financial Position as a Financial asset in accordance with IFRS
9. The financial asset is measured using the amortised cost model, which
recognises the rental payments as financial income and reductions of the asset
value based on the implicit interest rate in the lease. As at 31 December 2025
the market value of the property was estimated at £7.4 million (30 June 25:
£7.3 million and 31 December 24: £7.2 million).
Assets held at amortised cost are assessed annually for impairment with any
impairment recognised as an allowance for expected credit losses measured at
an amount equal to the lifetime expected credit losses. The Group considers
historic, current and forward-looking information to determine expected credit
losses arising from either a change in the interest rate implicit in the lease
or factors impacting the customer's ability to make lease payments. Based on
the information currently available the Group does not expect any credit
losses and the asset has not been impaired in the period.
18. Trade and other receivables
Unaudited Audited Unaudited
31 December 2025 30 June 2025 31 December 2024
£'000 £'000 £'000
Interest receivable on settlement derivatives - - 3,870
Trade and other receivables 15,079 9,725 6,405
Prepayments 790 1,464 969
Loans due from joint venture 116,815 108,423 -
Total trade and other receivables 132,684 119,612 11,244
The Group applies the IFRS 9 simplified approach to measuring expected credit
losses using a lifetime expected credit loss provision for trade receivables.
To measure expected credit losses on a collective basis, trade receivables are
grouped based on similar credit risk and ageing. The expected loss rates are
based on the Group's historical credit losses experienced over the period from
incorporation to 31 December 2025. The historical loss rates are then adjusted
for current and forward-looking information on macroeconomic factors affecting
the Group's tenants. Both the expected credit loss provision and the incurred
loss provision in the current and prior period are immaterial. No reasonable
possible changes in the assumptions underpinning the expected credit loss
provision would give rise to a material expected credit loss.
The Directors consider that the carrying value of trade and other receivables
measured at amortised cost approximate their fair value.
The loans due from Joint Venture relates to interest bearing loans of £95.6
million to the Joint Venture at a market rate of interest and short-term
non-interest bearing loans of £21.2 million. The loans are expected to be
settled before 31 December 2026.
19. Trade and other payables
Current Unaudited Audited Unaudited
31 December 2025 30 June 2025 31 December 2024
£'000 £'000 £'000
Accrued interest payable 11,835 7,225 9,623
Trade payables 3,254 3,630 -
Withholding Tax 2,369 2,263 -
Corporate accruals 7,663 5,940 10,103
VAT payable 500 3,585 5,296
Total trade and other payables 25,621 22,643 25,022
Non-current Unaudited Audited Unaudited
31 December 2025 30 June 2025 31 December 2024
£'000 £'000 £'000
Tenant deposits 3,545 1,672 1,118
Total trade and other payables 3,545 1,672 1,118
The Directors consider that the carrying value of trade and other payables
measured at amortised cost approximate their fair value.
20. Interest rate derivatives
To partially mitigate the interest rate risk that arises as a result of
entering into the floating rate debt facilities referred to in Note 21, the
Group has entered into derivative interest rate swaps and caps.
Unaudited Audited Unaudited
31 December 2025 30 June 2025 31 December 2024
£'000 £'000 £'000
Non-current asset: Interest rate swaps 278 2,580 8,048
Non-current asset: Interest rate caps 2,949 553 1,279
Current asset: Interest rate swaps 1,143 5,705 10,045
Current asset: Interest rate caps 684 2,386 3,026
Total 5,054 11,224 22,398
The interest rate cap and interest rate swap is remeasured to fair value by
the counterparty bank on a quarterly basis.
The fair value at the end of the period comprises: Unaudited Audited Unaudited
31 December 2025 30 June 2025 31 December 2024
£'000 £'000 £'000
At start of the period 11,224 31,449 31,449
Interest rate derivative premium paid on inception 4,389 1,169 -
Disposal of interest rate derivatives (6,039) (3,249) -
Accrued interest (1,683) 2,237 -
Changes in fair value of interest rate derivative (234) (375) 1,915
in the period (P&L)
Changes in fair value of interest rate derivative in the period (OCI) - (1,539) (730)
Credit to the income statement (P&L) (2,603) (18,468) (10,236)
Credit to the income statement (OCI) - - -
As at the end of the period 5,054 11,224 22,398
20. Interest rate derivatives (continued)
A summary of these derivatives as at 31 December 2025 is shown in the table
below:
Issuer Derivative Type Notional amount £m Mark to Market 31 December 2025 £m Average Strike Rate Effective Date Maturity Date
Premium Paid £m
SMBC Interest Rate Swap £67.0 £6.5 £1.0 2.14% Sep-23 Sep-26
SMBC Interest Rate Swap £37.5 £0.6 £0.0 3.61% Mar-24 Sep-26
Barclays Interest Rate Cap £90.0 £1.2 £0.5 3.45% May-25 Apr-28
SMBC Interest Rate Cap £75.0 £1.5 £1.0 2.75% Jul-25 Jul-27
Barclays Interest Rate Cap £57.7 £1.1 £1.3 2.04% Jan-26 Jun-30
Goldman Interest Rate Cap £57.7 £1.1 £1.3 2.04% Jan-26 Jun-30
Total £384.9 £12.0 £5.1
83.3% of the Group's outstanding debt as at 31 December 2025 was hedged
through the use of fixed rate debt or financial instruments (30 June 2025:
99.8%; 31 December 2024: 93%). It is the Group's target to hedge at least 50%
of the Group's total debt at any time using fixed rate loans or interest rate
derivatives.
Movements in the Group's fair value derivatives are recognised in the profit
and loss.
The derivatives have been valued in accordance with IFRS 13 by reference to
interbank bid market rates as at the close of business on the last working day
prior to each balance sheet date. The fair values are calculated using the
present values of future cash flows, based on market forecasts of interest
rates and adjusted for the credit risk of the counterparties. The amounts and
timing of future cash flows are projected on the basis of the contractual
terms.
All interest rate derivatives are classified as level 2 in the fair value
hierarchy as defined under IFRS 13 and there were no transfers to or from
other levels of the fair value hierarchy during the period.
21. Borrowings
Amounts falling due within one year: Unaudited Audited Unaudited
31 December 2025 30 June 2025 31 December 2024
£'000 £'000 £'000
Secured debt - - 30,000
Unsecured debt 104,500 - 50,000
Less: Unamortised finance costs (362) - (92)
104,138 - 79,908
Amounts falling due after more than one year:
Secured debt - - 97,982
Unsecured debt 784,891 606,986 570,600
Less: Unamortised finance costs (3,811) (3,384) (3,882)
781,080 603,602 664,700
Borrowings per consolidated statement of financial position 885,218 603,602 744,608
In July 2025, the Group completed its debut issuance of a £250.0 million
sterling-denominated senior unsecured bond with a term of 6 years. The bonds
bear a coupon on 5.125% and were priced at a spread of 115 basis points over
the relevant benchmark.
21. Borrowings (continued)
A summary of the Group's borrowing facilities as at 31 December 2025 are shown
below:
Lender Facility Credit Variable/ hedged^ Loan Amount drawn
Margin commitment 31 December 2025
Total cost of debt £m £m
Expiry
HSBC Revolving credit facility Sep 2026 1.70% 3.73%* 5.43% £75.0 £nil
ING Term Loan July 2027 1.55% 2.75% 4.30% £75.0 £75.0
ING Revolving credit facility - Unhedged July 2027 1.55% 3.73%* 5.28% £25.0 £22.7
Syndicate Revolving credit facility (£) July 2027 1.50% 3.73%* 5.23% £134.8 £126.0
Syndicate Revolving credit facility (€) July 2027 1.50% 2.04%* 3.54% £115.2 £115.2
SMBC Term Loan Sep 2026 1.40% 2.14%^ 3.54% £67.0 £67.0
SMBC Term Loan Sep 2026 1.55% 3.61% 5.16% £37.5 £37.5
Private Placement" Note July 2031 1.72% 2.72% 4.44% £72.5 £72.5
Private Placement" Note Feb 2032 1.68% 2.42% 4.10% £34.0 £34.0
Barclays Term Loan Apr 2028 1.55% 3.45% 5.00% £90.0 £90.0
Bond Bond Issuance Jul-31 1.15% 3.98% 5.13% £250.0 £250.0
Total £976.0 £889.9
*SONIA/EURIBOR rate as at 31 Dec 2025
^ Average rate from 1 Jan 2026 to expiry of the debt excluding extension
options.
"Drawn in Euro's and converted at the period-end rate
The Group has been in compliance with all of the financial covenants across
the Group's bank facilities as applicable throughout the periods covered by
these financial statements.
Any associated fees in arranging the bank borrowings that are unamortised as
at the end of the period are offset against amounts drawn under the facilities
as shown in the table above. Some debt facilities are secured by charges over
the Group's investment properties and by charges over the shares of certain
group companies, not including the Company itself. There have been no defaults
of breaches of any loan covenants during the current or any prior period.
The Group's borrowings carried at amortised cost are considered to be
approximate to their fair value.
Total borrowings £'000 Interest and commitment fees payable £'000 Total
£'000
As at 1 July 2025 603,602 7,368 610,970
Cash flows:
Debt drawdowns in the year 514,310 - 514,310
Debt repayments in the year (232,981) - (232,981)
Interest and commitment fees paid - (13,928) (13,928)
Loan arrangement fees paid (1,666) - (1,666)
Non-cash movements:
Finance costs in the statement of comprehensive income 877 18,395 19,272
Foreign exchange movement 1,076 - 1,076
As at 31 December 2025 885,218 11,835 897,053
22. Share capital
Six months to 31 December 2025 (unaudited) Ordinary shares Share Share Capital reduction reserve
of 1 pence capital premium £'000
Number £'000 reserve
£'000
As at 1 July 2025 1,246,239,185 12,462 500,386 553,113
Dividends paid in the period - - - (38,322)
As at 31 December 2025 1,246,239,185 12,462 500,386 514,791
Year to 30 June 2025 (audited)
As at 1 July 2024 1,246,239,185 12,462 500,386 629,196
Dividend paid in the year - - - (76,083)
As at 30 June 2025 1,246,239,185 12,462 500,386 553,113
Six months to 31 December 2024 (unaudited)
As at 1 July 2024 1,246,239,185 12,462 500,386 629,196
Dividends paid in the period - - - (37,948)
As at 31 December 2024 1,246,239,185 12,462 500,386 591,248
Ordinary shareholders are entitled to all dividends declared by the Company
and to all of the Company's assets after repayment of its borrowings and
ordinary creditors. Ordinary shareholders have the right to vote at meetings
of the Company. All ordinary shares carry equal voting rights.
23. Cash flow hedge reserve
Unaudited Audited Unaudited
Six months to Year to Six months to
31 December 2025 30 June 2025 31 December 2024
£'000 £'000 £'000
At start of the period - 1,539 1,539
Recycled comprehensive loss to profit and loss - (1,539) (730)
At the end of the period - - 809
24. Capital commitments
The Group had no capital commitments outstanding as at 31 December 2025 (30
June 2025: none; 31 December 2024: none).
25. Transactions with related parties
Details of the related parties to the Group in the period and the transactions
with these related parties were as follows:
Directors
Directors' fees and salaries
The table below shows the fees per annum for the roles performed by the Board
as at 31 December 2025:
Role Roger Blundell Frances Davies Vince Prior Sapna Shah Cathryn Vanderspar
Robert Abraham Michael Perkins Nick Hewson
£000 £000 £000 £000 £000 £000 £000 £000
Chair of Board of Directors - - 150 - - -
- -
Director - - 60 60 - 60 60 60
Audit and Risk Committee Chair^ 10 - - - - -
- -
Nomination Committee Chair - - - - 10 -
- -
Senior Independent Director - - - - 10 -
- -
Remuneration Committee Chair - - - - - 10
- -
ESG Committee Chair - 10 - - - -
- -
Chief Executive Officer* - - - - - -
405 -
Chief Financial Officer* - - - - - -
- 297
*Receive Director salaries rather than Non-Executive fee
25. Transactions with related parties (continued)
The table below shows the total remuneration received by each member of the
Board for the period ended 31 December 2025:
6 months to Year to 6 months to
31 December 2025 30 June 31 December 2024
£'000 2025 £'000
£'000
Nick Hewson 75 97 39
Jon Austen ^ 28 66 32
Vince Prior 30 62 30
Cathryn Vanderspar 35 62 30
Frances Davies 35 62 30
Sapna Shah 40 68 32
Roger Blundell ^ 31 27 -
Robert Abraham 203 105 -
Michael Perkins 149 77 -
^Jon Austen stepped down from the Board from 24 November 2025, Roger Blundell
became the Audit and Risk Committee Chair.
Directors' interests
Details of the direct and indirect interests of the Directors and their close
families in the ordinary shares of one pence each in the Company at 31
December 2025 were as follows:
· Nick Hewson: 1,516,609 shares (0.12% of issued share capital)
· Sapna Shah: 182,807 (0.01% of issued share capital)
· Frances Davies: 36,774 (0.00% of issued share capital)
· Vince Prior: 213,432 shares (0.02% of issued share capital)
· Cathryn Vanderspar: 116,369 shares (0.01% of issued share capital)
· Roger Blundell: 150,000 shares (0.01% of issued share capital)
· Robert Abraham: 226,402 shares (0.02% of issued share capital)
· Michael Perkins: 30,000 shares (0.00% of issued share capital)
25. Transactions with related parties (continued)
Investment advisor
· Investment advisory and accounting fees
The investment adviser to the Group, Atrato Capital Limited (the "Investment
Adviser"), was entitled to certain advisory fees under the terms of the
Investment Advisory Agreement (the "Agreement") dated 14 July 2021. On the 25
March 2025 the Company announced the Internalisation of the management
function from which date Atrato Capital Limited no longer served as the
Investment Adviser.
The entitlement of the Investment Adviser to advisory fees was by way of what
are termed 'Monthly Management Fees' and 'Semi-Annual Management Fees' both of
which are calculated by reference to the net asset value of the Group at
particular dates, as adjusted for the financial impact of certain investment
events and after deducting any uninvested proceeds from share issues up to the
date of the calculation of the relevant fee (these adjusted amounts are
referred to as 'Adjusted Net Asset Value' for the purpose of calculation of
the fees in accordance with the Agreement).
Until the Adjusted Net Value of the Group exceeds £1,500 million, the
entitlements to advisory fees can be summarised as follows:
· Monthly Management Fee payable monthly in arrears: 1/12th of 0.7125% per
calendar month of Adjusted Net Asset Value up to or equal to £500 million,
1/12th of 0.5625% per calendar month of Adjusted Net Asset Value above £500
million and up to or equal to £1,000 million and 1/12(th) of 0.4875% per
calendar month of Adjusted Net Asset Value above £1,000 and up to or equal to
£1,500 million.
· Semi-Annual Management Fee payable semi-annually in arrears: 0.11875%
of Adjusted Net Asset Value up to or equal to £500 million, 0.09375% of
Adjusted Net Asset Value above £500 million and up to or equal to £1,000
million and 0.08125% of Adjusted Net Asset Value above £1,000 million and up
to or equal to £1,500 million.
For the period 1 July 2024 to 25 March 2025 the total fees payable to Atrato
Group were £27,593,032 (31 December 2024: £4,636,435) of which £nil (31
December 2024: £1,739,567) was included in trade and other payables in the
consolidated statement of financial position as at 30 June 2025. £20,800,000
related to amounts payable to Atrato Group for the Internalisation of the
management function as follows:
· Termination of the Investment Advisory agreements -
£19,700,000
· Termination of AIFM agreement - £300,000
· Transitional services - £800,000
The Investment Adviser was also entitled to an annual accounting and
administration service fee equal to: £54,107; plus (i) £4,386 for any
indirect subsidiary of the Company and (ii) £1,702 for each direct subsidiary
of the Company.
For the period from 1 July 2024 to 25 March 2025 the total accounting and
administration service fee payable to the Investment Adviser was £250,353 (31
December 2024: £165,041) of which £88,801 (31 December 2024: £113,024) is
included in trade and other payables in the consolidated statement of
financial position as at 30 June 2025.
For the period from 1 July 2024 to 25 March 2025 the total Company Secretarial
fees payable to the Investment Advisor were: £63,401.
Charitable donations
The Company approved a new Volunteering and Charitable Giving Policy and an
allocation of £150,000 for charitable giving in FY26. During the period
£50,000 was approved by the Board and paid during the period (30 June 2025:
£180,000; 31 December 2024: £75,000). The donations were made to the Atrato
Foundation, a charity registered with the Charity Commission and Companies
House. The donations were made in the form of a restricted grant, with the
funds directed to charitable causes specified by the Board of the Company,
namely FareShare and Trussell Trust.
Joint Venture
On 16 May 2025, the Group entered into a joint venture agreement with Blue
Owl, for full details please see Note 15.
26. Net asset value per share
NAV per share is calculated by dividing the Group's net assets as shown in the
consolidated statement of financial position, by the number of ordinary shares
outstanding at the end of the period. As the LTIPs issued in the prior year
are dilutive instruments, we show the effect of these in diluted NAV per
share.
The Group uses EPRA Net Tangible Assets ("EPRA NTA") as the most meaningful
measure of long-term performance and the measure which is being adopted by the
majority of UK REITs, establishing it as the industry standard benchmark. It
excludes items that are considered to have no impact in the long term, such as
the fair value of derivatives.
The EPRA NTA per share calculation are as follows:
Unaudited Unaudited Audited
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Net assets per the consolidated statement of financial position 1,101,383 1,117,446 1,103,252
Fair value of interest rate derivatives (5,054) (22,398) (11,224)
Fair value adjustment for financial assets at amortised cost (3,966) (3,930) (3,955)
EPRA NTA 1,092,363 1,091,118 1,088,073
Ordinary shares in issue - Basic 1,246,239,185 1,246,239,185 1,246,239,185
Ordinary shares in issue - Diluted 1,248,037,739 1,246,239,185 1,248,570,767
NAV per share - Basic (pence) 88.4p 89.7p 88.5p
NAV per share - Diluted (pence) 88.2p 89.7p 88.4p
EPRA NTA per share (pence) 87.5p 87.6p 87.1p
27. Subsequent events
On 8 January 2026 the Board declared a second interim dividend for the year
ending 30 June 2026 of 1.545 pence per share, paid on 27 February 2026 to
shareholders on the register on 30 January 2026.
During the period the Company reached an agreement to transfer five of its
directly owned assets into the Joint Venture. In February 2026, the Group
completed the transfer of four of the five assets into the Joint Venture for
which the Company received a net cash consideration of £85.7 million.
In February 2026, the Company paid down £75 million of the drawn £126
million syndicate revolving credit facility.
In March 2026, the Group completed the acquisition of a Waitrose store with
non-grocery units in Warminster for £8.6 million (excluding acquisition
costs). The store has an 11-year unexpired lease term and is subject to
5-yearly upwards only, open market rent reviews.
Notes to EPRA and other Key Performance Indicators
This appendix does not form part of the notes to the condensed set of
consolidated interim financial statements.
1. EPRA Earnings and EPRA Earnings per Share
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Profit for the period 36,321 36,530 61,528
Adjustments to remove:
Changes in fair value of interest rate derivatives measured at FVTPL 2,837 8,320 18,842
Changes in fair value of investment properties (5,820) (7,202) (28,001)
Loss on disposal of investment properties - - 1,327
Group share of changes in fair value of joint venture investment properties
and derivatives
930 - (468)
Restructuring costs in relation to the acceleration of unamortised arrangement
fees
- - 236
Termination fee - - 20,800
Deferred Tax (617) (374) (871)
Internalisation costs 184 - 634
JSE listing fees - 113 192
EPRA earnings 33,835 37,387 74,219
EPRA EPS (Basic) 2.7p 3.0p 6.0p
EPRA EPS (Diluted) 2.7p 3.0p 6.0p
Weighted average number of ordinary shares - Basic₁ 1,246,239,185 1,246,239,185 1,246,239,185
Weighted average number of ordinary shares - Diluted₁ 1,248,037,739 1,246,239,185 1,246,328,616
(1) Based on the weighted average number of ordinary shares in issue in the
year ended 31 December 2025 both basic and diluted. Dilutive instruments are
in relation to the expected shares to vest as at the period end under the
LTIP.
Notes to EPRA and other Key Performance Indicators (continued)
2. EPRA NTA per share
EPRA NTA is considered to be the most relevant measure for the Group and is
now the primary measure of net assets, replacing the previously reported EPRA
Net Asset Value metric. For the current period EPRA NTA is calculated as net
assets per the consolidated statement of financial position excluding the fair
value of interest rate derivatives and includes a revaluation to fair value of
investment properties held at amortised cost.
31 December 2025 EPRA NTA EPRA NRV EPRA NDV
£'000 £'000 £'000
IFRS NAV attributable to ordinary shareholders 1,101,383 1,101,383 1,101,383
Fair value of interest rate derivatives (5,054) (5,054) -
Fair value adjustment for financial assets held at amortised cost (3,966) (3,966) (3,966)
Purchasers' costs - 139,863 -
Fair value of debt - - (5,483)
EPRA metric 1,092,363 1,232,226 1,091,934
Diluted Shares 1,248,037,739 1,248,037,739 1,248,037,739
EPRA metric per share 87.5p 98.7p 87.5p
30 June 2025
IFRS NAV attributable to ordinary shareholders 1,103,252 1,103,252 1,103,252
Fair value of interest rate derivatives (11,224) (11,224) -
Fair value adjustment for financial assets held at amortised cost (3,955) (3,955) (3,955)
Purchasers' costs - 110,531 -
Fair value of debt - - (799)
EPRA metric 1,088,073 1,198,604 1,098,498
Diluted Shares 1,248,570,767 1,248,570,767 1,248,570,767
EPRA metric per share 87.1p 96.0p 88.0p
31 December 2024 EPRA NTA EPRA NRV EPRA NDV
£'000 £'000 £'000
IFRS NAV attributable to ordinary shareholders 1,117,446 1,117,446 1,117,446
Fair value of interest rate derivatives (22,398) (22,398) -
Fair value adjustment for financial assets held at amortised cost (3,930) (3,930) (3,930)
Purchasers' costs - 124,167 -
Fair value of debt - - (5,947)
EPRA metric 1,091,118 1,215,285 1,107,569
Diluted Shares 1,246,239,185 1,246,239,185 1,246,239,185
EPRA metric per share 87.6p 97.5p 88.9p
Notes to EPRA and other Key Performance Indicators (continued)
3. EPRA Net Initial Yield (NIY) and EPRA "topped up" NIY
Annualised rental income based on the cash rents passing at the balance sheet
date, less non-recoverable property operating expenses, divided by the market
value of the property, increased with (estimated) purchasers' costs.
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Investment Property - wholly owned 1,750,278 1,825,990 1,415,819
Investment Property - share of joint venture 306,525 - 202,350
Completed Property Portfolio 2,056,803 1,825,990 1,618,169
Allowance for estimated purchasers' costs 139,863 124,167 110,531
Grossed up completed property portfolio valuation (B) 2,196,666 1,950,157 1,728,700
Annualised passing rental income - wholly owned 109,620 117,771 87,629
Annualised passing rental income - share of joint venture 22,428 14,613
-
Annualised non-recoverable property outgoings (1,310) (1,590) (1,621)
Annualised net rents (A) 130,738 116,181 100,621
Rent expiration of rent-free periods and fixed uplifts 502 390 433
Topped up annualised net rents (C) 131,240 116,571 101,054
EPRA NIY (A/B) 5.95% 5.96% 5.82%
EPRA "topped up" NIY (C/B) 5.97% 5.98% 5.85%
All rent free periods expire within the year to 30 June 2026
4. EPRA Vacancy Rate
As at As at As at
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Estimated rental value of vacant space 268 406 331
Estimated rental value of the whole portfolio 132,316 118,858 103,006
EPRA Vacancy Rate 0.2% 0.3% 0.3%
The EPRA vacancy rate is calculated as the ERV of the unrented, lettable space
as a proportion of the total rental value of the Investment Property portfolio
including the share in Joint Ventures. This is expected to continue to be a
highly immaterial percentage as the majority of the portfolio is let to the
largest supermarket operators in the UK.
Notes to EPRA and other Key Performance Indicators (continued)
5. EPRA Cost Ratio
Administrative & operating costs (both including and excluding costs of
direct vacancy) divided by gross rental income.
Six months to Six months to Year to
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Administration expenses per IFRS 5,011 7,575 14,469
Service charge income (4,607) (4,266) (9,044)
Service charge costs 4,918 4,608 9,819
Net Service charge costs 311 342 775
Share of joint venture expenses 137 - 130
Less:
Management fees (246) - (305)
Total costs (including direct vacant property 5,213 7,917 15,069
costs) (A)
Vacant property costs (213) (198) (744)
Total costs (excluding direct vacant property 5,000 7,719 14,325
costs) (B)
Gross rental income per IFRS 48,897 58,171 114,009
Add: Share of Gross rental income from Joint Venture 7,964 - 1,799
Gross rental income (C) 56,861 58,171 115,808
EPRA Cost ratio (including direct vacant property costs) (A/C) 9.2% 13.6% 13.0%
EPRA Cost ratio (excluding vacant property 8.8% 13.3% 12.4%
costs) (B/C)
1. The Company does not have any overhead costs capitalised as it has no
assets under development.
Notes to EPRA and other Key Performance Indicators (continued)
6. EPRA LTV
Net debt divided by total property portfolio and other eligible assets.
As at As at As at
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Group Net Debt
Borrowings from financial institutions 635,218 744,608 603,602
Bond loans 250,000 - -
Net payables - 37,491 -
Less: Cash and cash equivalents (48,036) (40,631) (95,281)
Group Net Debt Total (A) 837,182 741,468 508,321
Group Property Value
Investment properties at fair value 1,511,969 1,763,040 1,415,819
Asset held for sale 230,929 62,950 -
Net receivables 81,705 - 77,367
Financial assets 11,346 11,130 11,235
Total Group Property Value (B) 1,835,949 1,837,120 1,504,421
Group LTV (A/B) 45.6% 40.4% 33.8%
Share of Joint Venture's Debt
Borrowings from financial institutions 94,865 - -
Net payables 125,235 - 113,585
Less: Cash and cash equivalents (6,907) - (5,655)
JV Net Debt Total (A) 213,193 - 107,930
Joint Venture Property Value
Investment properties at fair value 306,525 - 202,350
Total JV Property Value (B) 306,525 - 202,350
JV LTV (A/B) 69.6% 0.0% 53.3%
Combined Net Debt (A) 1,050,375 741,468 616,251
Combined Property Value (B) 2,142,474 1,837,120 1,706,771
Combined LTV (A/B) 49.0% 40.4% 36.1%
7. EPRA Like-for-Like Rental Growth
Changes in net rental income for those properties held for the duration of
both the current and comparative reporting period.
Six months to Six months to Like-for-Like rental growth
31 December 2025 31 December 2024 %
£'000 £'000
Like for like - net rental income 49,897 49,504 0.8%
Properties acquired 6,673 506 -
Properties sold - 7,819 -
Net rental income 56,570 57,829 (2.2%)
The like-for-like rental growth is based on changes in net rental income for
those properties which have been held for the duration of both the current and
comparative reporting period. This represents a portfolio valuation, as
assessed by the valuer of £1.83 billion (31 December 2024: £1.31 billion).
Notes to EPRA and other Key Performance Indicators (continued)
8. EPRA Property Related Capital Expenditure
Amounts spent for the purchase and development of investment properties
(including any capitalised transaction costs).
As at As at As at
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Group
Acquisitions 319,178 50,861 81,785
Investment properties: Non-incremental letting space 220 2 365
Group Total CapEx 319,398 50,863 82,150
Joint Venture
Acquisitions 104,194 - -
Joint Venture Total CapEx 104,194 - -
Total CapEx 423,592 50,863 82,150
Acquisitions relate to purchase of investment properties in the period and
includes capitalised acquisition costs. Development relates to capitalised
costs in relation to development expenditure on the property portfolio.
9. Total Shareholder Return
Total Shareholder Return ("TSR") is measured by the movement in the Company's
net return index which reflects movements in share price over the period plus
dividends reinvested in shares on the ex-dividend date, expressed as a
percentage of the share price at the start of the period.
Total Shareholder Return Average net return at end of the period Average net return at start of the period Movement Total Shareholder Return
(Pence) (Pence) (Pence) %
31 December 2025 133.86 133.72 0.14 0.1%
31 December 2024 106.72 107.86 (1.14) (1.1%)
Notes to EPRA and other Key Performance Indicators (continued)
10. Net loan to value ratio
The proportion of our gross asset value that is funded by borrowings
calculated as statement of financial position borrowings less cash balances
divided by total investment properties valuation.
Net loan to value As at As at As at
31 December 2025 31 December 2024 30 June 2025
£'000 £'000 £'000
Borrowings - Group 885,218 744,608 603,602
Bank borrowings - Joint Venture Share 94,865 - -
Total borrowings 980,083 744,608 603,602
Cash and cash equivalents (48,036) - (95,281)
Cash and cash equivalents - Joint Venture Share (6,907) (40,631) (5,655)
Less total cash and cash equivalents (54,943) (40,631) (100,936)
Total Net borrowings 925,140 703,977 502,666
Investment properties and asset held for sale - Group 1,750,278 1,825,990 1,423,099
Investment properties - Joint Venture Share 306,525 - 202,350
Total Investment Properties 2,056,803 1,825,990 1,625,449
Net loan to value ratio 45% 39% 31%
11. Annualised passing rent
Annualised passing rent is the annualised cash rental income being received as
at the stated date.
COMPANY INFORMATION
Directors Nick Hewson (Independent Non-Executive Chair)
Robert Abraham (Chief Executive Officer)
Mike Perkins (Chief Financial Officer)
Sapna Shah (Senior Independent Director)
Roger Blundell (Independent Non-Executive Director)
Frances Davies (Independent Non-Executive Director)
Vince Prior (Independent Non-Executive Director)
Cathryn Vanderspar (Independent Non-Executive Director)
Company Secretary SGH Company Secretaries
Level 19, The Shard
32 London Bridge Street
London, SE1 9SG
Registrar MUFG Corporate Markets
19(th) Floor, 51 Lime Street
London
EC3M 7DQ
Financial Adviser and Joint Corporate Broker Peel Hunt LLP
100 Liverpool Street
London
EC2M 2AT
Financial Adviser and Joint Corporate Broker Stifel Nicolaus Europe
150 Cheapside
London
EC2V 6ET
Joint Corporate Broker Goldman Sachs International
Plumtree Court
25 Shoe Lane
London
EC4A 4AU
Auditors BDO LLP
55 Baker Street
London
W1U 7EU
Property Valuers (Direct Portfolio) Cushman & Wakefield
125 Old Broad Street
London
EC2N 1AR
Property Valuers (Joint Venture) Jones Lang LaSalle
30 Warwick Street
London
W1B 5NH
Financial PR Advisers Headland Consultancy
One New Change
London
EC4M 9AF
Website www.supermarketincomereit.com (https://www.supermarketincomereit.com/)
Registered Office Level 19, The Shard
32 London Bridge Street
London, SE1 9SG
London Stock exchange ticker SUPR
Johannesburg Stock Exchange ticker SRI
ISIN GB00BF345X11
This report will be available on the Company's website.
END
1 (#_ftnref1) The alternative performance measures used by the Group have
been defined and reconciled to the IFRS financial statements within the EPRA
and other Key Performance Indicators information
2 (#_ftnref2) Calculated as EPRA earnings divided by dividends paid in the
period
3 (#_ftnref3) Including share of joint venture portfolio and assets held for
sale
4 (#_ftnref4) Based on property values as at 31 December 2025, including
five stores for which the Company agreed terms to transfer to the JV in
November 2025 - see note 27 of the financial statements
5 (#_ftnref5) Kantar UK grocery market take-home sales for the 4 weeks to 28
December 2025
6 (#_ftnref6) Kantar UK grocery market, online share for the 12 weeks to 28
December 2025
7 (#_ftnref7) Kantar data, UK grocery market
8 (#_ftnref8) Kantar market share data as at 28 December 2025
9 (#_ftnref9) Kantar market share data as at 29 December 2024
10 (#_ftnref10) Kantar year-on-year sales growth for the 12 weeks to 28
December 2025
11 (#_ftnref11) Including one store for which the Company has signed an
agreement to purchase
12 (#_ftnref12) Excluding costs of sale
13 (#_ftnref13) Net Equivalent Yield ("NEY") is the time weighted average
return that a property will produce
14 (#_ftnref14) Including five stores for which the Company agreed terms to
transfer to the JV in November 2025, and acquisitions during the period
15 (#_ftnref15) Including share of Joint Venture acquisitions
16 (#_ftnref16) Including share of Joint Venture acquisitions
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