Acquisition of a Tesco Extra & an Aldi Supermarket

SUPERMARKET INCOME REIT

(the "Company")

LEI: 2138007FOINJKAM7L537

acquisition of a tesco EXTRA and an aldi supermarket in Beaumont Leys, LEICESTER

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 Extra, and an Aldi supermarket in Beaumont Leys, Leicester from British Land PLC.

The Tesco store was originally developed in the 1980's and subsequently extended and refurbished in 2007 to a 97,000 sq ft net sales area Tesco Extra. The site has parking provision for over 700 vehicles and a 12-pump petrol filling station. In addition to the supermarket, the Tesco demise also comprises purpose-built online fulfilment facilities which support Tesco's online grocery deliveries across the 262,000 population catchment area. It is being acquired with an unexpired lease term of 7 years, with 5-yearly, upwards only, open market rent reviews. The next rent review is in February 2023.

The Aldi supermarket is opening this year and extends to 14,800 sq ft of net sales area. It has been acquired with an unexpired lease term of 25 years (with break options at years 15 and 20) with 5-yearly, upwards only, RPI-linked rent reviews (subject to a 2.5% cap and 1.0% floor).

Adjoining the Tesco Extra and the Aldi supermarket is a parade of units comprising 33,000 sq ft net sales area, predominantly occupied by Costa, Greggs, WH Smiths and Pets at Home. The total consideration is £63.4 million (excluding acquisition costs) reflecting a combined net initial yield of 6.4%.

The site is adjacent to Fletcher Shopping Mall which will be retained as a separate interest by the vendor.

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

"We are pleased to have acquired a further omnichannel Tesco Extra, with this asset operating as a key online grocery fulfilment hub for Tesco. The Aldi acquisition provides further tenant diversification for the portfolio. Furthermore, we believe this site offers valuable asset management opportunities."

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 48 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 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)   22 direct properties, plus 26 via joint venture

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