Full Year 2025 Supermarket Income REIT PLC Earnings Call Transcript
Key Points
- Supermarket Income REIT PLC (LSE:SUPR) achieved a 7.3% increase in net rental income, rising from GBP107.2 million to GBP115.1 million.
- The company successfully internalized its management function, resulting in significant cost savings and a reduction in the EPRA cost ratio by 1.7% to 13%.
- A strategic joint venture with Blue Owl Capital was established, unlocking GBP200 million in net proceeds and providing potential for further scaling.
- The company issued a GBP250 million public bond, extending the average maturity of its debt and enhancing its financial flexibility.
- Supermarket Income REIT PLC (LSE:SUPR) maintained 100% occupancy and rent collection, underscoring the strength of its asset quality and tenant base.
- Disposals, including Tesco Newmarket and assets transferred into the joint venture, resulted in a GBP2.2 million reduction in rental income.
- Higher financing costs reduced earnings by 0.9p, primarily due to increased average drawn debt and higher weighted average debt costs.
- EPRA earnings per share slightly declined from 6.1p to 6p, despite core earnings rising by 0.1%.
- The internalization of the management function incurred a cost of 1.7p, impacting the overall financial results.
- Potential legislative changes on output-only rent reviews could impact the company's long-term lease agreements.
Good morning and welcome everybody. My name is Nick Hewson, Chair of Supermarket. It's my great pleasure to be here with you all this morning. Welcome.
This is our results presentation for the year ending June 30. It's been a transformational year for the business in many respects, a year in which we've achieved a number of strategic milestones which have focused on closing our discount to NTA providing an efficient and aligned platform to deliver increased scale and earnings growth for shareholders. And that works, very good.
This is, of course, the first set of results with Supermarket as an internalized company. And I'm very happy indeed to be joined this morning by our executive directors, CEO, Rob Abraham and CFO, Mike Perkins, who will be taking you through the presentation very shortly.
For us, it's been a year about demonstrating alignment with shareholders, demonstrating our asset values, and demonstrating the affordability of our supermarket rents.
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