Supermarket Income REIT PLC on Wednesday posted a higher annual profit as revenue from omnichannels rose.
Supermarket Income is a London-based real estate investment trust investing in supermarket property.
Pretax profit in the year that ended June 30 rose 35% to £110.3 million from £82.0 million the previous year. Net rental income jumped to £72.1 million form £47.9 million.
The trust declared a final dividend of 5.94 pence, up from 5.86p the prior year.
EPRA net tangible assets rose 6% to 115 pence from 108p.
Supermarket Income cited omnichannel stores as successful.
Robert Abraham, managing director of Fund Management at Supermarket Income explained: ‘Omnichannel is the dominant model for last-mile grocery fulfilment. Over 80% of all online orders are now fulfilled from omnichannel supermarkets. These stores are critical to the operations of the UK’s leading grocers and to the country as feed the nation infrastructure.’
Justin King, senior adviser to Atrato Capital Ltd, which is Supermarket Income’s investment adviser, said: ‘The improvements in omnichannel profitability from this growth are impressive. Economies of scale drive profitability with both delivery densities and item pick rates per hour well above pre-pandemic levels. In my view, productivity and profitability will continue to improve. What this does show is the importance, flexibility and resilience of the omnichannel store pick model.’
Chair Nick Hewson said he was pleased with the results and said he expects the firm’s assets to continue to deliver ‘stable’ and ‘long-term’ income to its shareholders.
‘Our long-dated, substantially inflation linked leases, together with our strong tenant covenants operating in a non-discretionary spend sector, positions us well as a business and we stand ready to take advantage of opportunities which may arise,’ Hewson said.
Supermarket Income shares were 2.1% higher at 116.42 pence each in London on Wednesday morning.
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