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Abraham said key tenants, Tesco and Sainsbury's, have reported robust sales growth and market share, particularly in omni-channel stores, which have seen the most significant sales increases. The investment market presents an attractive pipeline of accretive assets for SUPR, with current leverage allowing capacity for targeting these opportunities, he added.
Perkins noted that SUPR reported a 15% increase in net rental income for the six months ending
Since SUPR's IPO in 2017, Abraham said the grocery sector has seen a 35% sales growth, reaching a market size of £250 billion, with this increase largely attributable to like-for-like sales growth in omni-channel spaces, indicating a maturation phase for discounters. The grocery sector's strength has enhanced the property market, with store turnovers growing ahead of rents, demonstrating the affordability of rents for key tenants.
The investment market has witnessed record volumes of £2.1 billion, highlighting the attractiveness of supermarkets as an investment. With a robust balance sheet, low leverage (LTV of 33%), and significant headroom across banking covenants, Perkins said is well-positioned to pursue earnings-accretive acquisitions.
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