Full Year 2024 Supermarket Income REIT PLC Earnings Call Transcript
Key Points
- Strong operational performance with accretive acquisitions in the UK and France.
- Net rental income increased by 13% year on year to GBP107.2 million.
- Portfolio valued independently at GBP1.8 billion with a loan to value of 37%.
- Sector-leading metrics on occupancy, rent collection, and gross to net margin.
- Sustainability strategy aligned with UN Sustainable Development Goals and significant progress in ESG initiatives.
- EPRA NTA per share decreased by 6% from June '23.
- Higher interest rate expectations impacted property values, leading to a GBP54 million decline in the first half.
- Loan to value ratio at the upper end of the target range, limiting further leverage for acquisitions.
- Potential need to amend investment policy to pursue opportunities in France and continental Europe.
- Challenges in proving market evidence for rental growth to valuers, impacting valuations.
Good morning. Welcome to Supermarket Income REIT's full-year results for the 12 months to June 30, 2024. I'm Ben Green, and I'm joined this morning by Mike Perkins, who's the Finance Director for Super; Isabelle Smith, who's our Head of Sustainability; and Rob Abraham, who is the Fund Manager for Super.
Before handing over to the team, I'd like to try to summarize the year for you. So it's been a year of strong operational performance. We've made accretive acquisitions in the UK and France, and we're delivering earnings growth for shareholders.
Taking each of the circles in turn, the underlying grocery markets continue to deliver strong growth. Our core tenants are outperforming those markets. And the stores that we focus on are capturing an outsized share of that growth.
Moving to the middle circle, with improving market confidence, we've moved from a cautious strategy in the first half of the year, where we ran lower leverage, to now making selective, accretive acquisitions. These include our first strategic transaction
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