Acquisitions and rental growth helped Supermarket Income REIT grow annual rental income by 10% to £104.7m in the six months ended 31 December 2023.
The group said its performance was underpinned by continued structural growth in the grocery sector, with sales up by 8% and a record £1.2bn of investment into the grocery real estate sector during 2023.
Despite the strong performance, the value of the REIT’s 55 supermarkets dipped by 3.2% to just less than £1.7bn.
Chair Nick Hewson said: “The UK grocery sector continues to demonstrate strong resilience to the challenging macroeconomic environment. We remain focused on our investment strategy of acquiring and managing a high-quality portfolio of omni-channel supermarkets, which are critical to our tenants, giving us exposure to the largest and fastest growing segment of the grocery market.”
He added: “UK property valuations continue to be impacted by the uncertain economic backdrop, however as interest rates normalise and with the limited supply of omni-channel supermarkets, we remain highly optimistic for the valuation outlook for the year.”
Photo by Jochen Tack/imageBROKER/Shutterstock
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