Supermarket Income REIT gets tailwind from buoyant grocery sector

Proactive Investors

Last updated: 15:00 17 Apr 2025 BST, First published: 13:59 02 Mar 2021 GMT

Snapshot

• Supermarket Income REIT completes internalisation of manager as CEO and CFO
• Supermarket Income REIT making all the right moves
• Supermarket Income ‘s price target hiked as internalisation is ‘unequivocally positive’
• Atrato Capital CIO discusses strategic French market expansion with Carrefour acquisition

About the company

Supermarket Income REIT PLC 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.

Supermarket Income REIT provides investors with attractive, long-dated, secure, inflation-linked, growing income with the potential for capital appreciation over the longer term.

How it is doing

26 Mar 2025

Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) has completed the internalisation of its management function, as approved by shareholders last week, bringing its former external fund managers into the company as chief executive officer and chief financial officer. 

The grocery property investment company previously reached an agreement with external manager Atrato for a consideration of £19.7 million.

Today, Rob Abraham has been appointed as CEO and Mike Perkins as CFO, with both joining the board with immediate effect.

Welcoming the pair, chair Nick Hewson said: “This represents a significant milestone for the company, as we continue to make progress on our key strategic initiatives, which are designed to enhance earnings and continue to reduce the discount to NAV.  

14 Mar 2025

Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) managing director, Robert Abraham, and finance director, Michael Perkins, talked with Proactive about the company’s interim results for the six months to December 2024.

Abraham highlighted the company’s strategic progress, including cost reductions through internalisation, asset disposals, and lease renewals. He noted that a recent disposal to Tesco demonstrated the value of these assets, selling at a 7% premium to book value. The lease renewals extended three short-term leases to 15 years at significantly higher rental rates, reflecting the strong demand for top-performing supermarket assets.

11 Mar 2025

Stifel has reiterated its ‘buy’ rating on Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) following the company’s half-year results.

The real estate investment trust, which focuses on grocery store properties, delivered performance in line with expectations, but the real story is what happened after the period ended.

Insight: Supermarket Income REIT making all the right moves

17 Apr 2025

In the face of the market persistently discounting their shares relative to net assets over the past couple of years, most self-respecting investment trust boards have tried various strategies to close the gap.

Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) has done what several others have discussed but rarely delivered – it has parted ways with its external investment manager and brought the team in-house.

What the brokers say

27 Mar 2025

Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) received a reiterated ‘buy’ rating from analysts at Stifel, who raised their price target to 90p from 80p.

This followed a number of strategic changes over the past year, including the internalisation of its management function, which was completed this week.

Stifel said this move and associated reduction in costs “is unequivocally positive for the shares”

What management says

29 Apr 2024

Atrato Capital chief investment officer Steven Noble joins Proactive’s Stephen Gunnion with that Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) has a portfolio of 17 omnichannel supermarkets in France from Carrefour through a sale and leaseback transaction valued at €75 million.

The deal ensures a leaseback to Carrefour for 12 years, yielding an initial return of 6.3% with the advantage of annual uncapped inflation-linked rent reviews.

Noble emphasized that this move aligns with Atrato Capital’s ongoing strategy to focus on omnichannel stores, crucial for both online and in-store grocery sales. The acquisition not only fits its existing investment strategy but also expands its addressable market to the French grocery sector, valued at €284 billion. France was specifically chosen due to its significant online growth potential and Carrefour’s strong market position and omnichannel capabilities.