Supermarket Income REIT PLC reported on Tuesday it had restored profitability at the interim stage as it continued to explore opportunities to recycle capital.

The London-based investor in property leased to grocery retailers swung to pretax profit of £36.2 million for the six months that ended December 31, from a loss of £54.2 million a year earlier.

It recorded a gain on fair value of investment properties of £7.2 million, flipped from a loss of £57.9 million.

Gross rental income was £58.2 million, up 10% from £52.9 million.

Supermarket Income declared an interim dividend of 3.1 pence, up 3.3% from 3.0p.

IFRS earnings per share swung to 2.9p, from loss per share of 4.4p, following fair value adjustments. Headline earnings per share, which excluded this once-off item, was 2.4p, multiplied from 0.3p.

As at December 31, IFRS net asset value per share was unchanged at 90p.

Supermarket Income said it continued to ‘actively’ explore opportunities to recycle capital through individual asset sales and potential joint ventures at attractive valuations.

Capital recycling for the first half was delivered through £63.5 million sale of Tesco Newmarket. Proceeds from the Tesco transaction were used to fund the costs of internalisation and to reduce debt.

It made earnings-enhancing acquisitions, with £49.7 million deal in the UK and a further £36.7 million takeover of nine Carrefour SA supermarkets in France.

‘I am pleased with the progress we have made on the strategic initiatives announced in November 2024, which are ultimately designed to enhance the Company‘s earnings and close the discount to NAV,’ Supermarket Income Chair Nick Hewson said.

Supermarket Income said it is on track to deliver dividend target of 6.12p for the year ending June 30, from 6.1p a year before.

Shares in Supermarket Income were flat at 73.10 pence in London on Tuesday morning, while they were also unchanged at R 17.55 in Johannesburg.

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