Half Year 2026 Supermarket Income REIT PLC Earnings Call Transcript
Key Points
- Supermarket Income REIT PLC (LSE:SUPR) has increased its minimum dividend uplift to 2% from the next financial year onwards, indicating confidence in future earnings growth.
- The company has established a cost-efficient and scalable platform, evidenced by a 9.2% EPRA cost ratio, which is trending lower.
- The joint venture has been scaled to GBP845 million, demonstrating strong access to capital and generating GBP2 million a year in management fee income.
- The portfolio value increased to GBP2 billion, up 20% since June 2025, with a revaluation uplift of GBP7 million or 1.3% on a like-for-like basis.
- Supermarket Income REIT PLC has maintained a high-quality income profile with 76% of the portfolio being investment grade and 100% occupancy and rent collection.
- Net rental income decreased by 2% in the period, largely due to the timing gap between receiving joint venture proceeds and subsequent redeployment.
- EPRA earnings per share decreased to 2.7p compared with 3p in the prior period, impacted by the transfer of assets into the joint venture.
- The company's leverage has increased to 43% as it executed on its pipeline, with net debt-to-EBITDA at 8.2x on a pro forma basis.
- The cost ratio, although improved, still includes transitional costs following internalization, with a target to reduce it below 9% for FY27.
- There is a reliance on inflation-linked lease structures for future dividend growth, which may not fully align with inflationary increases in the short term.
Right. Good morning, everyone, and welcome to Super's Interim Results to the December 31, 2025. So I'm going to start us off with a strategic overview, and then I'll hand you over to Mike to take you through the numbers. So it's been an incredibly busy period for us with significant levels of activity as we delivered on our strategy to grow earnings. And shareholders are now seeing the benefits of this as we're increasing the minimum dividend uplift to 2% from the next financial year onwards. And we're positioned for further growth with an attractive near-term pipeline of over GBP500 million. So just to take you through some of the proactive steps we've taken over the last year to create a platform for growth. We've achieved much greater shareholder alignment through the internalization of the management. And shortly after that, we completed the joint venture, which has allowed us to undertake capital recycling and also generate management fee income. And during the period, we scaled that to GBP845 million,
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