Supermarket Income REIT sees portfolio valuation fall by 13.3%

23rd February 2023 | Jack Oliver

Supermarket Income REIT saw its portfolio valued at £1.63bn by the end of 2022, representing a fall of 13.3% on a like-for-like basis over a six-month period.

The real estate investment trust said the decline reflected a shift in property yields applied by valuers due to higher interest rates and the overall macroeconomic environment.

The investment trust said that the fall in valuation had been partly mitigated by contractually-obligated rent increases in line with inflation, with the average rent increase from rent reviews performed during the second half of 2022 at 3.7%.

Supermarket Income REIT has full or part ownership of 76 UK supermarkets, across the Tesco, Sainsbury’s, Morrisons, Waitrose, Aldi, M&S, and Asda brands.

Ben Green, director of Atrato Capital Limited, investment Adviser to Supermarket Income REIT, said:   “Supermarket property has been less volatile than the broader UK property market but has not been immune to the outward yield shift experienced across investment markets.

“We have the advantage of operating in the non-discretionary spend grocery sector which continues to outperform the wider economy.”

Supermarket Income REIT is set to announce its half year results for the last six months of 2022 on March 30.


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