Company Announcements

SUPERMARKET INCOME REIT PLC

(the "Company")

LEI: 2138007FOINJKAM7L537
 

acquisition of a Morrisons supermarket IN cambridgeshire

Supermarket Income REIT plc (LSE: SUPR), the real estate investment trust providing secure, inflation-protected, long income from grocery property in the UK, announces the acquisition of a Morrisons supermarket in Wisbech, Cambridgeshire from Aberdeen Standard Investments.  

The store was developed in the 1980's and was subsequently extended and refurbished by Morrisons in 2011 to comprise 37,000 sq ft net sales area. It is being acquired with a new 26 year lease (with a tenant-only break option in year 20) and is subject to five yearly, upwards only, RPI-linked rent reviews (subject to a 3.0% cap and a 1.5% floor). The store forms a key part of Morrisons' online grocery fulfilment network providing both home delivery and click and collect to its local catchment.

This prominent nine acre site has parking provision for over 500 vehicles and the acquisition includes two adjoining units comprising a 36,000 sq ft net sales area let to B&Q and B&M with a weighted unexpired lease term of eight years and subject to open market rent reviews.

The total consideration is £30.0 million (excluding acquisition costs) representing a combined net initial yield of 5.0%.

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

"This modern store is a great addition to our growing portfolio of omnichannel stores. The property has strong underlying fundamentals with an attractive lease term providing inflation linked income in excess of 20 years."

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 52 supermarkets⁽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 Limited is the Company's Investment Adviser.

Further information is available on the Company's website www.supermarketincomereit.com

(1)   26 directly owned supermarkets, plus 26 via joint venture

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