Acquisition of Morrisons store and debt update

SUPERMARKET INCOME REIT

(the "Company")

LEI: 2138007FOINJKAM7L537

acquisition of a morrisons supermarket in telford, shropshire, AND AN UPDATE ON DEBT FINANCING

Supermarket Income REIT (LSE: SUPR), the real estate investment trust providing secure, inflation-protected, long income from grocery property in the UK, announces the acquisition of a Morrisons supermarket in Telford from Santander Trustees Limited for £14.3 million (excluding acquisition costs), reflecting a net initial yield of 5.0%.

Developed in 2012, the four-acre site is located at a prominent roadside junction in the centre of Lawley Village, a new 3,550-home development. The site comprises a 42,434 sq ft gross internal area supermarket (27,000 sq ft net sales area) with 220 parking spaces and an online click-and-collect facility.

It is being acquired with an unexpired lease term of 17 years with a break option in year 12. The lease is subject to five-yearly, upward-only, RPI-linked rent reviews (subject to a 3% cap and 1% floor).

The Company also announces it has increased its debt facilities with Bayerische Landesbank (BLB) by £34.8 million, comprising a new £27.5 million, secured, five-year tranche and a further £7.3 million tranche, upsizing its existing £52.1 million secured term loan for the remaining three-year term. The new facilities are in both cases priced at a 1.85% margin over 3-month Libor, representing a total cost of debt of 2.0%. Proceeds will be used to finance recently-acquired stores.

Ben Green Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said: "This transaction represents an opportunity to acquire a modern Morrisons supermarket that is ideally located to benefit from the growing catchment at the centre of a significant 3,550-home development. We are also pleased to extend our relationship with BLB, a key funding partner for us as we grow".

FOR FURTHER INFORMATION

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

Matt Blawat

Tavistock                                                         

Jeremy Carey ([email protected])                       +44 (0)78 3673 4625

James Whitmore ([email protected])           +44 (0)77 4093 1042

NOTES TO EDITORS:

Supermarket Income REIT plc (LSE: SUPR) is a real estate investment trust dedicated to investing in grocery properties which are an essential part of the UK's feed the nation infrastructure. The Company focuses on grocery stores which are omnichannel, fulfilling online and in-person sales. All of the Company's 18 properties are let to leading UK supermarket operators, diversified by both tenant and geography.

The Company provides investors with attractive, long-dated, secure, inflation-linked, growing income with the potential for capital appreciation over the longer term and targets a 7% to 10% p.a. total shareholder return over the medium term⁽¹⁾. The Company has increased its dividend target in line with UK RPI inflation each year

The Company's ordinary shares were admitted to trading on the Main Market of the London Stock Exchange, Specialist Fund Segment, on 21 July 2017.

Atrato Capital is the Company's Investment Adviser.

Further information is available on the Company's website www.supermarketincomereit.com

(1)   There is no certainty that these illustrative projections will be achieved