Acquisition of three supermarkets for £118 million

Supermarket Income REIT plc (LSE: SUPR, JSE: SRI) announces that it has exchanged contracts to acquire an attractive portfolio of three supermarkets (the "Portfolio") for £118 million in aggregate, at an average net initial yield ("NIY") of 6.9%1, which is due to complete in September 2026.

The portfolio comprises three well-established stores with strong trading histories, let on triple-net leases which are 100% inflation-linked and 100% investment grade income:

Sainsbury's, Manchester

• Triple-net unexpired lease term of 12 years
• Annual RPI-linked rent reviews (subject to a 5% cap and 3% floor), with rent of £34 per sq. ft.
• 5.2-acre site comprising 71,000 sq. ft. supermarket with a Click & Collect facility

Tesco, Edinburgh

• Triple-net unexpired lease term of 5 years
• Annual RPI-linked rent reviews (subject to a 4% cap and 0% floor), with rent of £33 per sq. ft.
• 8.8-acre site comprising 128,000 sq. ft. supermarket with 8 home delivery vans and a Click & Collect facility

Tesco, Halifax

• Triple-net unexpired lease term of 8 years
• Annual RPI-linked rent reviews (subject to a 5% cap and 0% floor), with rent of £35 per sq. ft.
• 5.1-acre site comprising 41,000 sq. ft. supermarket

The Portfolio's weighted average unexpired lease term ("WAULT") of 8 years and average rents of £34 per sq ft. provide regear opportunities to drive attractive total returns.

Rob Abraham, CEO of Supermarket Income REIT, commented:

"This acquisition will add three high quality stores to our portfolio and further demonstrates the compelling growth opportunities we continue to see in grocery real estate. As the leading landlord in the sector, we remain well positioned to drive returns for shareholders through our team of sector specialists."

Notes

​

1 NIY based on actual acquisition costs