LSE:SUPR

Stock Analysis Report

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Supermarket Income REIT

Executive Summary

Supermarket Income REIT plc (LSE: SUPR) is a real estate investment trust dedicated to investing in supermarket properties that form a key part of the future omnichannel model of grocery and let to leading UK supermarket operators.


Snowflake Analysis

Imperfect balance sheet with questionable track record.

Share Price & News

How has Supermarket Income REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SUPR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

SUPR

8.7%

GB REITs

5.5%

GB Market


1 Year Return

5.8%

SUPR

-8.0%

GB REITs

-9.2%

GB Market

Return vs Industry: SUPR exceeded the UK REITs industry which returned -9% over the past year.

Return vs Market: SUPR exceeded the UK Market which returned -10% over the past year.


Shareholder returns

SUPRIndustryMarket
7 Day0.5%8.7%5.5%
30 Day2.3%13.0%10.8%
90 Day4.3%-9.8%-0.4%
1 Year11.8%5.8%-4.8%-8.0%-4.8%-9.2%
3 Yearn/a-2.8%-14.6%-0.8%-12.9%
5 Yearn/a-2.6%-20.3%18.1%-8.2%

Price Volatility Vs. Market

How volatile is Supermarket Income REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Supermarket Income REIT undervalued compared to its fair value and its price relative to the market?

21.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUPR (£1.09) is trading above our estimate of fair value (£0.85)

Significantly Below Fair Value: SUPR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SUPR is poor value based on its PE Ratio (21.1x) compared to the REITs industry average (15.2x).

PE vs Market: SUPR is poor value based on its PE Ratio (21.1x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SUPR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SUPR is overvalued based on its PB Ratio (1.1x) compared to the GB REITs industry average (0.7x).


Next Steps

Future Growth

How is Supermarket Income REIT forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

16.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SUPR's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if SUPR's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SUPR's revenue (16.4% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: SUPR's revenue (16.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUPR's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has Supermarket Income REIT performed over the past 5 years?

33.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: SUPR has high quality earnings.

Growing Profit Margin: SUPR's current net profit margins (61.6%) are lower than last year (71.9%).


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if SUPR's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare SUPR's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: SUPR earnings growth over the past year (33.2%) exceeded the REITs industry -22.4%.


Return on Equity

High ROE: SUPR's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is Supermarket Income REIT's financial position?


Financial Position Analysis

Short Term Liabilities: SUPR's short term assets (£13.6M) exceed its short term liabilities (£8.9M).

Long Term Liabilities: SUPR's short term assets (£13.6M) do not cover its long term liabilities (£167.3M).


Debt to Equity History and Analysis

Debt Level: SUPR's debt to equity ratio (51%) is considered high.

Reducing Debt: Insufficient data to determine if SUPR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SUPR's debt is not well covered by operating cash flow (7.9%).

Interest Coverage: SUPR's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Supermarket Income REIT's current dividend yield, its reliability and sustainability?

5.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SUPR's dividend (5.36%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: SUPR's dividend (5.36%) is low compared to the top 25% of dividend payers in the UK market (5.5%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SUPR has been paying a dividend for less than 10 years.

Growing Dividend: SUPR's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (104%), SUPR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SUPR's dividends in 3 years are not forecast to be well covered by earnings (105.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average board tenure


CEO

Supermarket Income REIT has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Andrew Hewson
Independent Non-Executive Chairman3yrsUK£55.00k0.099% £510.7k
Jonathan Austen
Independent Non-Executive Director3yrsUK£40.00k0.030% £157.2k
Vincent Prior
Senior Independent Directorno dataUK£39.00k0.016% £82.9k
Cathryn Vanderspar
Independent Director0.33yrno data0.0041% £21.2k

3.0yrs

Average Tenure

61.5yo

Average Age

Experienced Board: SUPR's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 97.5%.


Top Shareholders

Company Information

Supermarket Income REIT plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Supermarket Income REIT plc
  • Ticker: SUPR
  • Exchange: LSE
  • Founded: 2017
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: UK£516.246m
  • Shares outstanding: 473.62m
  • Website: https://www.supermarketincomereit.com

Location

  • Supermarket Income REIT plc
  • The Scalpel
  • 18th Floor
  • London
  • EC3M 7AF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUPRLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2017

Biography

Supermarket Income REIT plc (LSE: SUPR) is a real estate investment trust dedicated to investing in supermarket properties that form a key part of the future omnichannel model of grocery and let to leading UK supermarket operators. The Company provides investors with attractive, long-dated, secure, inflation-linked, growing income with the potential for capital appreciation over the longer term and targeting a 7% to 10% p.a total shareholder return over the medium term. The Company has increased its dividend target for the year ending 30 September 2020 in line with UK RPI inflation to 5.80 pence per share, payable in quarterly instalments. Atrato Capital is the Company's Investment Adviser. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 11:26
End of Day Share Price2020/06/04 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.