EL7.AI
StocksMedium•3 November 2026•
3 min read

Supermarket Income REIT targets £50 million to fund £65.2 million of acquisitions

Key Facts

1The company is targeting a raise of about £50 million through a share issue announced on 3 November 2026.
2The six acquisitions comprise 12 assets valued at £65.2 million, with an average net initial yield of 7.3% and an average unexpired lease term of 12 years.
3One deal includes a portfolio of seven convenience grocery stores leased to Sainsbury’s, at a price of £19.0 million.
4The company’s shares fell about 2% on Tuesday, 3 November, after it announced the issue plan.

Supermarket Income REIT announced on 3 November 2026 its intention to raise about £50 million through a new share issue to fund a group of acquisitions in grocery property. The company identified six transactions covering 12 assets with a total value of £65.2 million. The assets have an average net initial yield of 7.3%, while the weighted average unexpired lease term is 12 years. The company expects to complete the acquisitions by December 2026. The announcement relates to financing identified deals, while the available information did not include a final result for the amount raised.

The company said the six acquisitions are earnings-enhancing and put their total consideration at £65.2 million, compared with a share issue target of about £50 million. It added that combining the proceeds with measured use of leverage would enable it to fund the acquisitions while keeping the loan-to-value ratio at about 45% on a pro forma basis after completion. The arrangement reflects the plan’s reliance on equity financing alongside borrowing, according to the company’s statement. The assets have an average net initial yield of 7.3%, the yield reported by the company for the deals. The weighted average unexpired lease term is 12 years.

Two of the deals are direct transactions with Sainsbury’s. One involves buying a portfolio of seven convenience grocery stores leased to the company, in an off-market deal agreed directly with the operator. The company put the purchase price of the portfolio at £19.0 million. It said completion of the deal is expected shortly. Sainsbury’s assets form part of the acquisition package that the company said it intends to fund through the issue.

The company’s figures for its existing portfolio are as of 30 September 2026, when it owned 140 grocery assets in the UK and France, directly and through its joint venture. The portfolio’s total value stood at £2.2 billion on that date. The company said the portfolio’s current annual rent was £144.4 million and that 82% of leases include inflation-linked reviews. It linked the appeal of grocery property yields to growing demand in the UK grocery market and favourable supply and demand dynamics in the property investment market. These figures provide context for the portfolio to which the new assets will be added if the deals are completed.

The company expected the new shares to become effective for trading on the London Stock Exchange on 10 November 2026, or later but no later than 20 November. In its annual results for the year ended 30 June 2026, it reported EPRA earnings per share of 5.7 pence, compared with 6.0 pence in the previous year. The declared distribution per share rose to 6.2 pence from 6.1 pence. Chief Executive Rob Abraham said when the annual results were announced that the company had completed £222 million of acquisitions since the end of the financial year and aimed to grow the portfolio to £4 billion and above. After the company announced its share issue plan on Tuesday, its shares fell about 2%, according to Investing.com.