Property investor Supermarket Income REIT has identified a strong pipeline of opportunities in the grocery real estate market, with £500m of assets available in its core target of UK supermarkets.
In the six months to 31 December 2025, the London-listed group increased annualised passing rent by 11% year on year to £132m and saw its portfolio valuation jump 27% to £2.1bn, with a net initial yield of 6%.
CEO Rob Abraham said the growth opportunity within the grocery market remained “highly compelling” as supermarket sales reached record highs of £13.8bn in December 2025.
“Against this backdrop, our deep sector expertise coupled with our strong sector relationships gives us a unique advantage as we look to double the size of the portfolio over time,” he added. “We have a compelling near-term pipeline, with omnichannel supermarkets continuing to perform strongly, and the potential for diversification into new geographies and complementary adjacencies within grocery real estate opening up additional opportunities.”
Supermarket Income REIT made its entry into the convenience side of the market in November, buying 10 Sainsbury’s c-stores.
The group also entered into a joint venture with US asset manager Blue Owl Capital last year to buy 10 Asda supermarkets for £200m.
It has now scaled the funded managed by Blue Owl to £845m.
“SUPR has delivered a strong first half for shareholders, with significant levels of activity as we continue to execute our strategy at pace. Capital from the JV has been redeployed successfully to enhance both the value and income across our high-quality grocery portfolio,” Abraham said.
No comments yet