(Alliance News) - Supermarket Income REIT PLC on Wednesday said its net tangible asset value decreased 19% in its latest financial year, and it swung to a loss, but raised its dividend regardless.
The London-based real estate investment trust, which is focused on UK grocery stores, said its EPRA NTA per share was 93 pence at June 30, down 19% from 115p at the same time the year prior.
Supermarket Income shares were up 4.2% at 78.12p in London on Tuesday morning.
"The UK grocery sector has again demonstrated resilience despite the challenging macroeconomic environment we have experienced during the year," said Chair Nick Hewson. "We remain focused on our investment strategy of acquiring and managing a high-quality portfolio of omnichannel supermarkets.
"These give us exposure to the fastest growing segment of the UK grocery market which itself is experiencing strong growth."
Meanwhile, the company declared a 6.00p dividend for the year ended June 30, up 1.0% from 5.94p the year before.
The FTSE 250-listed firm reported a GBP144.9 million pretax loss for the year, compared with a GBP110.3 million profit in 2022. It attributed this to a GBP256.1 million negative change in fair value of its properties, following a positive GBP21.8 million change.
Net rental income increased 32% to GBP95.2 million from GBP72.1 million. Annualised passing rent increased 30% to GBP100.6 million from GBP77.6 million.
Administrative and other expenses rose 11% to GBP15.4 million, while finance expenses more than tripled to GBP39.3 million.
Supermarket Income said it now plans to increase its dividend to 6.06p per share for the year ending June 30, 2024. It said the UK grocery sector has a "positive" long-term outlook despite recent headwinds, although conditions are likely to remain difficult for now.
"As we look forward," Hewson commented, "the quality of our...portfolio and the increasing affordability of grocery rents, together with our robust balance sheet means we are well positioned to continue delivering long-term value for our shareholders."
By Emma Curzon, Alliance News reporter
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Supermarket Income (SUPR)