Supermarket Income REIT has increased the value of its grocery property portfolio to more than £2 billion after investing heavily in supermarket assets during its latest financial year.
The UK-listed grocery property investor reported a portfolio valuation of £2.01 billion at 30 June 2026, up 23.7% from £1.63 billion a year earlier.
The group acquired £454 million of properties during the year, expanding a portfolio that now includes more than 130 stores occupied by major grocery retailers including Tesco, Sainsbury’s, Asda, Morrisons, M&S, Waitrose and Aldi.
Net rental income increased 6.3% to £122.3 million, supported by acquisitions and rental growth. The company’s joint venture with Blue Owl also expanded to £855 million.
However, higher financing costs and the timing of capital redeployment weighed on one measure of operating performance. EPRA earnings per share declined 4.1% to 5.7 pence from 6.0 pence in the previous year.
IFRS earnings per share increased 39.4% to 6.9 pence, while the dividend declared for the year rose 1% to 6.2 pence per share.
Loan-to-value increased to 43.9%, compared with 31.1% a year earlier, reflecting the expansion of the portfolio. The company reported a portfolio net initial yield of 6%.
Supermarket Income REIT said continued growth in the non-discretionary grocery sector supports its investment strategy. Large omnichannel supermarkets remain particularly important to the UK grocery market because the same stores can serve physical shoppers as well as online fulfilment operations.
The company is targeting sustainable minimum dividend growth of 2% a year from its 2027 financial year as it continues to assess grocery property investment opportunities.
