Supermarket Income REIT (LSE:SUPR) reported an increase in its property portfolio value to £2.0 billion for the year ended 30 June 2026, up from £1.6 billion a year earlier, following £454 million of acquisitions across the UK and France.
The grocery-focused property investor also introduced a minimum annual dividend growth target of 2% from the 2027 financial year, following a 1% increase in dividend per share for FY26.
The company expanded its joint venture with Blue Owl Capital to £855 million during the year, while extending its investment activities into convenience stores and additional European markets.
EPRA earnings declined slightly, reflecting the timing of refinancing activities and capital redeployment. The company’s EPRA cost ratio stood at 9.2%, which it described as the lowest in its sector.
Supermarket Income REIT completed a £250 million inaugural unsecured bond issue and a £445 million refinancing during the period. The transactions extended debt maturities and supported access to investment-grade funding.
The group’s loan-to-value ratio increased to 43.9% at the financial year-end.
Following the reporting period, the company raised £100 million in equity in July 2026. Together with additional borrowing, the proceeds funded £222 million of property acquisitions at an average yield of 6.6%.
Supermarket Income REIT is targeting further portfolio expansion to £4 billion and beyond. It reported a pipeline of potential acquisitions exceeding £500 million, although completion of these transactions remains subject to future investment decisions.
The company cited developments in the grocery market as part of its investment strategy. UK grocery expenditure reached £256 billion in 2025, while online grocery penetration stood at 12.6%. The group focuses on properties that support both in-store shopping and online fulfilment.
Its portfolio consists primarily of supermarkets and related grocery properties leased to major operators under long-term agreements, including leases with inflation-linked rental provisions.
The company also reported progress in its environmental, social and governance activities, including Living Wage accreditation and a Prime rating from ISS STOXX.
Management was internalised ahead of the 2026 financial year, a change the company said has improved operational efficiency and created capacity for further portfolio expansion.
Supermarket Income REIT is a FTSE 250-listed property investment company with shares traded on the London Stock Exchange and the Johannesburg Stock Exchange. Its investment strategy focuses on grocery properties across the UK and Europe, with rental income supporting its dividend policy.
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