Supermarket Income REIT gives confident outlook as portfolio tops £2bn

(Sharecast News) - Supermarket Income REIT has reiterated its target for minimum annual dividend growth of 2% from the current financial year after expanding its portfolio to more than £2bn during FY26.

The grocery property investor declared dividends of 6.2p per share for the year to 30 June, up 1% on the prior year, and said it was targeting a 6.3p payout for FY27.

Its property portfolio increased 23.7% to £2.01bn following £454m of acquisitions during the year, while the company also expanded its joint venture with Blue Owl Capital to £855m.

EPRA earnings per share slipped 4.1% to 5.7p, which the group said mainly reflected the timing of redeploying proceeds from the Blue Owl joint venture and a one-off increase in interest costs following debt refinancing. IFRS earnings per share, however, rose 39.4% to 6.9p.

EPRA net tangible assets per share edged up 0.4% to 87.5p, while the loan-to-value ratio increased to 43.9% from 31.1%.

Since year-end, Supermarket Income REIT has raised £100m in fresh equity and deployed the proceeds, alongside debt, into £222m of further acquisitions. It said it had an actionable pipeline worth more than £500m and remained focused on doubling the portfolio to "£4bn and beyond".

Chief executive Rob Abraham said: "The fundamentals of the grocery market remain compelling and, as the leading landlord in the sector, we believe we are best placed to deliver on our clear strategy and the significant opportunities that exist."

The stock was up 1.4% at 83.6p by 1026 BST.

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