SUPERMARKET INCOME REIT PLC
(the "Company")
Trading Update and dividend declaration
For the period from 1 January 2018 to 31 March 2018
The Board of Supermarket Income REIT plc (LSE: SUPR), the only real estate investment company dedicated to investing in UK supermarket property, today publishes the following trading update for the period from 1 January 2018 to 31 March 2018.
Financial highlights:
· £210.5 million invested in four supermarket assets in the UK that operate both as physical supermarkets and as online fulfilment centres[1].
· The investment properties benefit from highly attractive leases:
o Current weighted average unexpired lease terms (WAULT) of 18 years (no break options)
o Strong tenant covenants (Tesco and Sainsbury's)
o Annualised passing rent roll of £10.8 million
o Upward only, annual, RPI-linked rent reviews
o All assets acquired off-market
o Average rent review uplift of 3.9% achieved on two properties during the period
· The Company's investment properties were independently valued on 31 March 2018 at £210.5 million, representing an increase of 4.5% above the aggregate acquisition price (excluding acquisition costs).
· The average net initial yield of the portfolio at acquisition is 5.0% against our period end valuation of 4.8% net initial yield.
· Net loan to value (LTV) ratio of 44.0%, the Company will continue to target an LTV of 30 - 40% in the medium term, which the Directors consider conservative given the low risk nature of the portfolio.
· Net Asset Value (NAV) per ordinary share of 96 pence as at 31 March 2018.
· Further pipeline of potential acquisitions available which meet the Company's investment criteria.
Dividend declaration
· The Board has declared a dividend in respect of the period 1 January 2018 to 31 March 2018 of 1.375 pence per ordinary share, payable on or around the 21 May 2018. The ex-dividend date will be 26 April 2018. This dividend will be paid as a Property Income Distribution ("PID") in respect of the Company's tax exempt property rental business.
· The Company is on track to deliver an annualised 5.5 pence per ordinary share dividend.
Ben Green of Atrato Capital, Investment Advisor to Supermarket Income REIT commented:
"Since IPO in July 2017, Supermarket Income REIT has rapidly built a portfolio of high quality UK supermarket property generating attractive inflation linked income for shareholders.
During the quarter, we concluded two rent reviews with increases of 3.9%, demonstrating the value of the contracted RPI linkage in our leases"
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
Neil Winward
Tom Yeadon
Tavistock +44 (0)20 7920 3150
Jeremy Carey
James Whitmore
James Verstringhe
NOTES TO EDITORS:
Supermarket Income REIT plc (SUPR) listed on the London Stock Exchange in July 2017. SUPR acquires UK supermarket sites that form a key part of the future model of grocery in the United Kingdom. SUPR aims to provide long-term RPI-linked income, from institutional grade tenants and the potential for capital growth through active asset management. Atrato Capital is the Company's Investment Adviser.
Further information is available on the Company's website www.supermarketincomereit.com
