Supermarket Income REIT

Supermarket Income REIT
Company typePublic limited company
LSE: SUPR
IndustryProperty investment
Founded2017; 8 years ago (2017)
Headquarters
London
,
United Kingdom
Key people
  • Nick Hewson (chairman)
RevenueIncrease £95.2 million [1] (2023)
Decrease £(133.1) million [1] (2023)
Decrease £(144.9) million [1] (2023)
Websitewww.supermarketincomereit.com

Supermarket Income REIT is a British property investment company which invests in retail property and holds a large portfolio of supermarket buildings. It is structured as a real estate investment trust (REIT) that is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.[2]

History

The company was launched on the London Stock Exchange in July 2017 and used the proceeds to purchase a series of supermarkets with the main supermarket chains as its tenants.[3] The company, together with its joint venture partner, British Airways Pension Trustees, acquired British Land's 25.5% stake in a portfolio of supermarkets in May 2020.[4] It went on to buy a large supermarket in Newmarket in July 2020,[5] a large supermarket in Bracknell in September 2020[6] two supermarkets, one in Melksham and one in Winchester in January 2021,[7] five supermarkets in the northwest of England in September 2021,[8][9] a supermarket in Cannock in December 2021[10] and a supermarket in Cwmbran in January 2022.[11]

Sainsbury's exercised its option to acquire thirteen stores, which it occupied, from the company and its joint venture partner, British Airways Pension Trustees, in September 2021[12] and then bought a further eight stores, which it occupied, from the company and its joint venture partner in January 2022.[13] The company raised an additional £175 million to buy supermarkets in April 2022.[14][15]

By April 2022, the company had raised funds nine times for the purposes of building its portfolio of supermarkets; by that time the company owned 41 supermarkets directly and partially owned another 26 supermarkets through its joint venture with British Airways Pension Trustees.[16][17]

Operations

The company specialises in supermarkets. Its portfolio was valued at £1.8 billion as at 30 June 2022.[1] The company is advised in all aspects of its work by Atrato Capital.[18] The company is one of a small number of UK Real Estate Investment Trusts which have been launched in the UK and the only one specialising in supermarkets.[19] The UK market is much less developed than that in the US; analysts at S&P Global Ratings have suggested that the UK REIT market "needs to grow a lot bigger" and involve "greater specialization".[20]

References

  1. ^ a b c d "Annual Report 2023" (PDF). Supermarket Income REIT. Retrieved 13 February 2024.
  2. ^ "FTSE UK Index Series Annual Review June 2022". 1 June 2022. Retrieved 17 June 2022.
  3. ^ "Tesco Extra store in Bristol snapped up for £28.5m by supermarket investment firm". The Grocer. 18 August 2017. Retrieved 1 June 2022.
  4. ^ "British Airways scheme, SUPR buy into £400m UK supermarket portfolio". IPE Real Assets. 27 May 2020. Retrieved 1 June 2022.
  5. ^ "Supermarket REIT adds £61m UK grocery property to portfolio". IPE Real Assets. 27 July 2020. Retrieved 1 June 2022.
  6. ^ "Supermarket Income REIT buys £40m supermarket asset in Bracknell". IPE Real Assets. 14 September 2020. Retrieved 1 June 2022.
  7. ^ "LaSalle sells two UK shops to Supermarket REIT for £65m". IPE Real Assets. 25 January 2021. Retrieved 1 June 2022.
  8. ^ "Supermarket Income REIT picks up £95m of retail assets". Place North West. 20 September 2021. Retrieved 17 June 2022.
  9. ^ "Tesco, Aldi, M&S and Morrisons supermarkets acquired by real estate investment giant in £113.1m deal". Business Live. 20 September 2021. Retrieved 17 June 2022.
  10. ^ "Supermarket REIT adds £76m store to portfolio". IPE Real Assets. 1 December 2021. Retrieved 17 June 2022.
  11. ^ "Asda in Cwmbran changes hands in £55 million deal". South Wales Argus. 7 January 2022. Retrieved 17 June 2022.
  12. ^ "Sainsbury's buys UK supermarket assets from BA pension, SUPR JV". IPE Real Assets. 10 September 2021. Retrieved 1 June 2022.
  13. ^ "Sainsburys acquires 8 extra stores from real estate investment trust". Grocery Gazette. 7 January 2022. Retrieved 1 June 2022.
  14. ^ "Supermarket Income REIT looks to raise £175m". 7 April 2022. Retrieved 17 June 2022.
  15. ^ "Supermarket Income REIT exceeds fundraising target". IPE Real Assets. 27 April 2022. Retrieved 17 June 2022.
  16. ^ "Supermarket Income REIT nearly doubles its share sale as pipeline grows". Global Capital. 27 April 2022. Retrieved 1 June 2022.
  17. ^ "Supermarket Income REIT nearly doubles fundraise to £300m". Portfolio Advisor. 27 April 2022. Retrieved 1 June 2022.
  18. ^ "Supermarket Income REIT exceeds fundraising target". IPE Real Assets. 27 April 2022. Retrieved 1 June 2022.
  19. ^ "REITs & UK Real Estate Investment Trusts – Property Investors Guide". Investment Property. Retrieved 18 June 2022.
  20. ^ "UK REIT sector needs to 'grow a lot bigger,' say top property executives". S&P. 8 January 2021. Retrieved 18 June 2022.