Acquisition of a Tesco supermarket and updated KID

SUPERMARKET INCOME REIT

(the "Company")

LEI: 2138007FOINJKAM7L537

acquisition of a tesco supermarket and Updated Key Information Document ("KID")

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 Tesco supermarket in Bracknell from a client of CBRE Global Investors for £39.5 million (excluding acquisition costs), reflecting a net initial yield of 5.7%.

Developed in the early 1990's, Tesco has a long history of trading from this prominent 7.3-acre site which comprises a purpose-built food store and a 400-space surface car park. The store has several purpose-built online distribution docks, supporting Tesco's online grocery business across the region. The asset is being acquired with an unexpired lease term of 10 years with annual, upward only, RPI-linked rent reviews (subject to a 4% cap and 0% floor). The acquisition will be financed via a £40 million increase of the £100 million RCF facility provided by HSBC. The increase will be priced at a 1.75% margin over 3-month Libor.

The Company has also published an updated Key Information Document ("KID") in accordance with the requirements of the Packaged Retail and Insurance-based Investment Products ("PRIIPs") Regulation.

The KID provides key information about the Company as an investment product. It is not marketing material. The KID contains information about the Company in a prescribed format and should be considered alongside the Company's statutory filings, such as the Annual Report, which can also be found on the website.

The full KID is available to view and download on the Company's website at: https://www.supermarketincomereit.com/investor-centre

Ben Green Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said:

"This omnichannel Tesco supermarket is an excellent addition to our portfolio. The store is situated in a prime location and is an important online grocery fulfilment hub, supporting both home delivery and click and collect."

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 45 properties⁽¹⁾ 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⁽²⁾. 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 Specialist Fund Segment of the London Stock Exchange's Main Market for listed securities 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)   19 direct properties, plus 26 via joint venture

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