Supermarket Income REIT

Supermarket Income REIT is a property company which invests in retail property and holds a large portfolio of supermarkets. The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.[2]

Supermarket Income REIT
TypePublic limited company
LSE: SUPR
IndustryProperty
Founded2017 (2017)
HeadquartersLondon, United Kingdom
Key people
  • Nick Hewson (chairman)
RevenueIncrease £72.1 million (2022)[1]
Increase £123.3 million (2022)[1]
Increase £110.3 million (2022)[1]
Websitewww.supermarketincomereit.com

History

The company was launched on the London Stock Exchange in July 2017 and used the proceeds to purchase as 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. "Annual Report 2022" (PDF). Supermarket Income REIT. Retrieved 18 February 2023.
  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.
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