Supermarket Income REIT: Year End Results
RESULTS FOR THE YEAR ENDED 30 JUNE 2021
Supermarket Income REIT plc (LSE: SUPR), the UK supermarket real estate investment trust providing secure, inflation-protected, long income from grocery property in the UK, is today reporting its audited consolidated results for the Group for the year ended 30 June 2021 (the “Year”).
Financial Highlights (12 months to 30 June ’21)
- Annualised Passing Rent UP 101% to £57.8m (2020: £28.7m)
- EPRA Earnings UP 119% £36.8m (2020: £16.8m)
- Profit before tax UP 150% to £82.0m (2020: £32.8m)
- Dividend paid per share UP 2% to 5.9 pence (2020: 5.8 pence)
- IFRS EPS UP 29% to 12.6 pence (2020: 9.8 pence)
- EPRA EPS UP 12% to 5.6 pence (2020: 5.0 pence)
- EPRA dividend cover: 1.04x (2020: 0.84x)
- IFRS net assets UP 83% to £871m (2020: £477m)
- EPRA NTA UP 82% to £872m (2020: £479m)
- EPRA NTA per share UP 7% to 108 pence (2020: 101 pence)
- Net Loan to value (Direct Portfolio) up 73% to 34.0% (2020: 19.7%)
- Portfolio net initial yield DOWN 6% to 4.7% (2020: 5.0%)
- 11% Total Shareholder Return for the year and 40% since initial listing in July 2017[1]
- Direct Portfolio independently valued at £1.15 billion, an increase of £609.0 million following valuation growth of £67.8 million and new acquisitions of £541.2 million (excluding acquisition costs):
- 8.5% valuation growth on a like-for-like basis
- 4.1% valuation growth on acquisitions in the year
- Direct Portfolio net initial yield (“NIY”) of 4.7%
- Direct Portfolio weighted unexpired lease term (“WAULT”) of 15 years
BUSINESS HIGHLIGHTS
- £353 million of equity raised via two upsized and over-subscribed issuances of New Ordinary Shares:
- £200 million Placing and Offer for Subscription in September 2020
- £153 million Placing in March 2021
- Acquisition of 20 complementary supermarket assets for an aggregate purchase price of £541.2 million at a blended net initial yield of 5.0%
- Acquisition of a further 25.5% stake in the Sainsbury’s Reversion Portfolio through the Company’s joint venture with British Airways Pension Trustees Limited (“BAPTL”). The cost of the Group’s additional investment was £57.5 million (excluding acquisition cost)
- Direct Portfolio net loan to value (“LTV”) ratio of 34% as at 30 June 2021, with a weighted current cost of debt of 1.9%
- EPRA NTA per ordinary share of 108 pence as at 30 June 2021
- 100% of grocery rent collected with 99.5% of total rent received
POST BALANCE SHEET EVENTS
- Purchase of 5 supermarket sites for £94.6 million (excluding acquisition costs) providing a blended NIY of 4.8%
- £91.3 million of new debt financing at a weighted average cost of 1.55% and a weighted average term of 5 years
- £128 million of remaining debt capacity through committed and uncommitted accordion options on debt facilities
- FY 2022 dividend target has increased by 1.4% to 5.94 pence per share, in line with the average increase in passing rents for the year
Nick Hewson, Chairman of Supermarket Income REIT plc, commented:
“I am very pleased to be able to report another solid set of results by the Group. During the year, our Direct Portfolio has benefited from an 8.5% like-for-like increase in valuation, delivering an EPRA NTA of 108 pence per share as at 30 June 2021.
Since our initial listing in 2017 we have delivered a 40% Total Shareholder Return and continue to offer our investors stable, long-term, inflation-protected income that is backed by one of the most compelling real estate asset classes in the UK investment market.”
Below is a video, shot with the investment team of Atrato Group, the advisors behind SUPR, highlighting the Group’s investment strategy
