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SUPR acquires UK supermarket sites that form a key part of the future model of grocery in
the United Kingdom. SUPR aims to provide long-term RPI-linked income, from institutional
grade tenants and the potential for capital growth through active asset management. Atrato
Capital is the Company's Investment Adviser.
Further information is available on the Company's website www.supermarketincomereit.com
Chairman's Statement
I am pleased to present the interim unaudited consolidated results for the Group for the
period from incorporation on 1 June 2017 to 31 December 2017 (the "Period").
Overview
The Company's IPO in July 2017 (the "IPO") raised gross proceeds of £100 million. The
Company's ordinary shares ("shares") were admitted to trading on the Specialist Fund
Segment of the Main Market of the London Stock Exchange ("SFS") on 21 July 2017.
The Company raised an additional £20 million equity in an oversubscribed follow-on offering
in November 2017.
In accordance with the Company's investment policy, the net proceeds were invested in four
supermarkets (the "Portfolio") operating both as physical supermarkets and as online
fulfilment centres (for home delivery and/or click and collect) on large sites with the potential
for capital growth through active asset management opportunities. All the assets in the
Portfolio were part of the Company's target assets list at the time of the IPO.
The Portfolio is let on fully repairing and insuring lease terms, with upward only, annual,
RPI-linked rent reviews, generating an annualised passing rent roll of £10.7 million with a
current weighted average unexpired lease term of 18 years.
The Portfolio has been independently valued by Cushman & Wakefield in accordance with
the RICS Valuation - Professional Standards 2017 (the "Red Book"). As at 31 December
2017, the Portfolio had a market value of £207.9 million, representing an increase of
approximately 3.2% above the aggregate acquisition price (excluding acquisition costs).
These acquisitions were funded from the proceeds of the IPO, the follow-on equity
fundraising, and drawdowns from the credit facility provided to the Group by HSBC Bank Plc
("HSBC").
The Company's investment adviser, Atrato Capital Limited (the "Investment Adviser"), has
identified a further pipeline of assets which meet the Company's investment criteria.
Financial Results
The Group's NAV at 31 December 2017 equates to 94 pence per ordinary share. IPO costs
together with the costs of acquiring the Portfolio (primarily stamp duty land tax) reduced
NAV per share by circa 11 pence partially offset by the valuation growth (exclusive of those