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Supermarket Inc REIT (SUPR)

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Friday 27 March, 2020

Supermarket Inc REIT

Dividend, rental income and corporate update

RNS Number : 7913H
Supermarket Income REIT PLC
27 March 2020


(the "Company")



Supermarket Income REIT plc (LSE: SUPR) the real estate investment trust providing secure, inflation-protected, long income from  grocery propert y in the UK, reaffirms its dividend and provides a rental income and corporate update.


Determination of rent reviews and successful collection of quarterly rent


The Company announces agreed rental increases from the two rent reviews due in the quarter. The review at the Tesco superstore in Lime Trees, Bristol, has resulted in a Retail Prices Index (RPI) increase of 2.2% from March 2020. The rent has increased from £1.58 million to £1.62 million.


The review at the Morrisons supermarket in Hillsborough, Sheffield, has resulted in an increase based on five years of RPI of 13.0% from October 2019. The rent has increased from £2.54 million to £2.87 million per annum.


The total rent from the Company's portfolio has therefore increased from £28.03 million to £28.4 million following these reviews.


The Company confirms receipt of 100% of the expected March 2020 quarterly rental payments.



Reaffirmation of the dividend


As a result of the above, the Company reaffirms its intention to pay its third-quarter interim dividend in line with expectations and as per the normal timetable. The third-quarter dividend is due to be announced on 8 April 2020.



Corporate update


While it is too early to fully understand the long-term implications of the ongoing health crisis, the Company has a robust balance sheet and is in a strong position to continue operating as usual despite the wider uncertainty. After the payment of the third-quarter dividend, the Company expects:


· A net loan-to-value ratio (LTV) of 37.5% versus an LTV covenant of 60.0%

· Interest cover of 6.8x versus a debt covenant of 2.0x

· Cash balances of £32 million


Whilst all supermarkets in the portfolio continue to operate as normal, the safety of its staff, its tenants and their customers are of paramount importance to the Company. The Company remains in regular dialogue with its tenants and partners and will act in accordance with all recommendations given by relevant authorities.

For further information, please contact:


Atrato Capital Limited    +44 (0)20 3790 8087

Ben Green

Steve Windsor

Steve Noble


Stifel Nicolaus Europe Limited       +44 (0)20 7710 7600

Mark Young

Matthew Blawat


Tavistock    +44 (0)20 7920 3150

Jeremy Carey

James Whitmore



Supermarket Income REIT plc (LSE: SUPR) is a real estate investment trust dedicated to investing in supermarket properties that form a key part of the future omnichannel model of grocery and let to leading UK supermarket operators.

The Company provides investors with attractive, long-dated, secure, inflation-linked, growing income with the potential for capital appreciation over the longer term and targeting a 7% to 10% p.a total shareholder return over the medium term. The Company has increased its dividend target for the year ending 30 September 2020 in line with UK RPI inflation to 5.80 pence per share, payable in quarterly instalments.

The Company's ordinary shares were admitted to trading on the Main Market of the London Stock Exchange, Specialist Fund Segment, on 21 July 2017.

Atrato Capital is the Company's Investment Adviser.

Further information is available on the Company's website

LEI: 2138007FOINJKAM7L537


This information is provided by RNS

The company news service from the London Stock Exchange


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