Supermarket Income REIT plc (LSE:SUPR) has completed a £445 million refinancing that lowers its financing costs while extending the maturity profile of its debt.
The refinancing comprises a £375 million syndicated facility alongside a £70 million bilateral facility. Both are structured as three-year and five-year revolving credit facilities, each with options to extend by up to two additional one-year periods.
Refinancing strengthens balance sheet and improves debt profile
The new facilities refinance all of the company’s unsecured borrowings due to mature over the next two years, reducing the average borrowing margin to 1.18% above SONIA and generating annual interest savings of around £0.3 million.
The transaction also increases Supermarket Income REIT’s weighted average debt maturity from 2.9 years to 3.8 years, leaving the company with no debt repayments due before June 2028. In addition, approximately 98% of its overall 4.4% cost of debt remains fixed or hedged, helping to reduce exposure to interest rate volatility.
Management said the refinancing reflects continued lender confidence in the company’s grocery-focused property portfolio and conservative capital structure.
Stable income strategy supported by disciplined financing
Supermarket Income REIT continues to benefit from an attractive valuation, supported by a relatively low earnings multiple and a high dividend yield, alongside solid operating margins and a strong balance sheet.
These strengths are partly offset by declining revenue and free cash flow trends, while technical indicators remain broadly neutral. Recent earnings commentary has also been supportive, with upgraded dividend guidance and continued cost discipline helping to offset the impact of leverage and near-term earnings per share pressures.
More about Supermarket Income REIT plc
Supermarket Income REIT plc is a FTSE 250 real estate investment trust focused exclusively on grocery property assets across the UK and Europe. Its portfolio consists of omnichannel supermarkets let to leading food retailers, providing long-term, inflation-linked rental income from assets that play a key role in national food distribution networks.
Valued at approximately £2.1 billion as of 31 December 2025, the portfolio supports both in-store shopping and online grocery fulfilment. The company aims to deliver progressive dividends and long-term capital growth while maintaining a resilient portfolio of essential retail infrastructure.
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