Supermarket Income REIT Targets Next Phase of Growth with £2bn Portfolio Established

Fiona Craig
LSE:SUPR
29 September 2026
Supermarket Income REIT (LSE:SUPR) is entering its next phase of growth with a portfolio now established at over £2 billion, a strong financial performance and ambitions to more than double the scale of the business over the coming years.
The company delivered a 7.5% total accounting return for the year, while continued acquisition activity has helped expand earnings and strengthen the platform for future dividend growth.
Speaking to ADVFN’s Watch List, Rob Abraham, CEO of Supermarket Income REIT, highlighted the role of acquisitions and the company’s growing scale in driving performance.
Acquisitions driving earnings growth
According to Abraham, the company’s strong performance has been underpinned by an active approach to acquisitions and the development of a more efficient investment platform.
A key step has been the establishment of a joint venture with Blue Owl Capital, which has now been scaled to £855 million.
The structure has enabled Supermarket Income REIT to recycle capital and reinvest proceeds into further earnings-enhancing acquisitions, creating additional capacity for growth.
The objective is not simply to expand the property portfolio, but to build the earnings base needed to support sustainable dividend growth.
Supermarket Income REIT has also set a target of at least 2% annual dividend growth from FY2027, with the growing scale of the platform helping to support that ambition.
Abraham also pointed to the benefits of scale, with the company continuing to build an efficient operating platform and improve its cost ratio as the portfolio grows.
A £4bn opportunity
With the portfolio now over £2 billion, Supermarket Income REIT has set its sights considerably higher, targeting £4 billion and beyond.
The opportunity extends across the wider grocery property market, where the company believes its sector specialism gives it the ability to identify and underwrite opportunities across a broad range of assets.
That includes traditional large-format supermarkets, which remain an important part of the strategy, alongside smaller-format and convenience stores.
The company is also looking further along the grocery supply chain, including grocery logistics properties and distribution warehouses that support store networks.
There is also potential to expand the strategy into European markets.
Maintaining quality as the portfolio grows
Importantly, the strategy is not simply about increasing the size of the portfolio.
Supermarket Income REIT intends to maintain a strong quality profile as it scales, using a combination of lease length, tenant quality and investment-grade characteristics when assessing opportunities.
Abraham outlined a target portfolio structure of approximately:
- 90% grocery income
- Around 12 years average lease length
- Around 80% inflation-linked income
- Around 70% investment-grade income
This provides a clear framework for how the company intends to grow while maintaining the defensive characteristics of its existing portfolio.
The focus remains on properties operated by leading grocery businesses, with Supermarket Income REIT targeting some of the most important and mission-critical assets within their networks.
Building on a strong platform
With a £2 billion portfolio already established, an £855 million joint venture vehicle and a clear ambition to reach £4 billion and beyond, Supermarket Income REIT is positioning itself for another stage of expansion.
The combination of acquisition-led earnings growth, increasing scale and a focus on long-duration, inflation-linked grocery income provides the foundation for the company’s next phase.
For investors following the UK real estate sector, Supermarket Income REIT’s progress will be closely linked to its ability to continue deploying capital into attractive grocery property opportunities while maintaining the quality and resilience of its income base.
As Rob Abraham explains, the strategy is ultimately about using scale to grow earnings, support dividends and build a larger portfolio while retaining the attractive fundamentals that have defined Supermarket Income REIT to date.
For more information visit Supermarket Income REIT
This article was written by the editorial team at InvestorsHub/ADVFN






















