Interim Results for six months ended 31 Dec 2025

About this update from Supermarket Income Reit Plc

[{"type":"text","content":"\n \n   \n Supermarket Income REIT plc \n (\"SUPR\", the \"Group\" or the \"Company\") \n   \n INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 \n   \n STRONG STRATEGIC DELIVERY DRIVEN BY AN ESTABLISHED PLATFORM FOR GROWTH \n Supermarket Income REIT plc (LSE: SUPR, JSE: SRI), the leading grocery real estate business that invests in high-quality, inflation linked, grocery assets, reports its results for the six months ended 31 December 2025 (the \"Period\"). \n   \n ·    JV proceeds now fully redeployed, updating guidance to a target minimum sustainable dividend uplift of 2% p.a. for FY27 onwards \n ·      Delivered results in line with market forecasts; underpinned by strong structural grocery dynamics   \n ·      Significant pipeline of opportunities across grocery real estate that can be unlocked by industry-leading specialism and a cost-efficient, shareholder-aligned platform \n   \n FINANCIAL HIGHLIGHTS \n   \n \n \n \n \n \n \n \n Six months to \n 31-Dec-25 \n \n \n Six months to \n 31-Dec-24 \n \n \n Change \n  in Year \n \n \n \n \n Annualised passing rent 1 \n \n \n £132.0m \n \n \n £118.5m \n \n \n +11% \n \n \n \n \n EPRA earnings per share [1] \n \n \n 2.7 pence \n \n \n 3.0 pence \n \n \n -10% \n \n \n \n \n IFRS earnings per share \n \n \n 2.9 pence \n \n \n 2.9 pence \n \n \n 0% \n \n \n \n \n Dividend per share (declared) \n \n \n 3.09 pence \n \n \n 3.06 pence \n \n \n +1% \n \n \n \n \n Dividend cover 1, [2] \n \n \n 88% \n \n \n 99% \n \n \n -11pts \n \n \n \n \n EPRA cost ratio 1 \n \n \n 9.2% \n \n \n 13.6% \n \n \n -4.4pts \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n 31-Dec-25 \n \n \n 30-June-25 \n \n \n Change \n in Period \n \n \n \n \n Portfolio valuation 1, [3] \n \n \n £2,057m \n \n \n £1,625m \n \n \n  +27% \n \n \n \n \n Portfolio net initial yield 1, 3 \n \n \n 6.0% \n \n \n 5.9% \n \n \n +0.1pts \n \n \n \n \n EPRA NTA per share 1 \n \n \n  87.5 pence \n \n \n 87.1 pence \n \n \n +0.5% \n \n \n \n \n IFRS NAV per share \n \n \n 88.4 pence \n \n \n 88.5 pence \n \n \n -0.1% \n \n \n \n \n Loan to value 1, 3 \n \n \n 45% \n \n \n 31% \n \n \n +14pts \n \n \n \n \n   \n Rob Abraham, CEO of Supermarket Income REIT plc, commented: \n \"SUPR has delivered a strong first half for shareholders, with significant levels of activity as we continue to execute our strategy at pace. Capital from the JV has been redeployed successfully to enhance both the value and income across our high-quality grocery portfolio. The benefits of management internalisation are clearly demonstrated with a cost ratio firmly amongst the sector leaders. Our shareholders will directly benefit through the introduction of our new sustainable dividend growth target of a minimum 2% p.a. for FY27 onwards, as we continue to build on our leading position. \n \"The growth opportunity within grocery real estate remains highly compelling with supermarket sales reaching record highs in December 2025.  Against this backdrop, our deep sector expertise coupled with our strong sector relationships gives us a unique advantage as we look to double the size of the portfolio over time. We have a compelling near-term pipeline, with omnichannel supermarkets continuing to perform strongly, and the potential for diversification into new geographies and complementary adjacencies within grocery real estate opening up additional opportunities for SUPR.\" \n   \n Successful delivery of strategic initiatives has positioned SUPR for long-term growth \n ·      Scaled the joint venture with funds managed by Blue Owl Capital (the \"JV\") to £845 million [4] \n ·     £398 million of earnings enhancing acquisitions, which are expected to contribute to providing a sustainable, growing dividend for FY27 onwards \n o  Movement in earnings is a temporary reflection of asset transfer into the JV, which will unwind following the reinvestment into new assets, and one-off impact of the proactive decision to refinance and extend the term of debt broadly in line with current incremental cost of debt \n ·      Highly efficient and shareholder-aligned platform with an EPRA cost ratio of 9.2%, one of the lowest in the sector, on track to deliver below 9% in the near term \n ·      Robust balance sheet following the Company's debut bond issuance in July 2025, with an LTV of 43% (including post balance sheet events) \n ·      The Company's portfolio valuation increased by 1.3% on a like-for-like basis 3 \n ·     With full deployment, the Company is now targeting a sustainable minimum dividend uplift of 2% per annum for FY27 onwards   \n   \n Building on SUPR's leading position in an exciting sector \n ·     Non-discretionary grocery spend continues to demonstrate growth and resilience with take home sales reaching a record £13.8 billion [5] in December 2025 \n ·      Mission critical omnichannel stores are capturing growth in the online market, which now accounts for 12.6% of the total grocery market [6] \n ·    While retaining an industry leading cost ratio, SUPR has reinforced its position as a sector specialist following investment in senior hires, allowing the Company to identify unique opportunities across the wider grocery real estate universe with its relationship-led model \n   \n   Further progress on key sustainability initiatives   \n ·      Awarded first ever European Public Real Estate Association (\"EPRA\") Sustainability Best Practices Recommendations (\"sBPR\") Gold Award for sustainability reporting to accompany the Company's seventh consecutive EPRA Gold Award for financial reporting \n ·       Joined the UN Global Compact, reflecting the Company's commitment to a principles-based approach to business \n   \n   A strong pipeline of future opportunities \n ·    Strong pipeline of opportunities of over £500 million of high-quality assets in the grocery property investment universe \n ·     While maintaining a core focus on UK omnichannel supermarkets, the Company is leveraging its sector specialism and relationships to grow within the wider grocery real estate space \n ·      This includes further investment in grocery-anchored retail parks and European supermarkets, whilst the Company is also exploring opportunities within grocery distribution \n   \n PRESENTATION FOR ANALYSTS \n   \n The Company will be holding an in-person presentation for analysts at 8.30am (GMT) today at MYO St Paul's, One New Change, London, EC24M 9AF. To register to attend in-person, please contact Headland Consultancy: [email protected] . There will also be a webcast available. To join the presentation via the webcast, please register using the following link: Supermarket Income REIT - Half Year Results Presentation 2026 | SparkLive | LSEG \n   \n The results presentation is available in the Investor Centre section of the Group's website. \n   \n \n \n \n \n FOR FURTHER INFORMATION    \n \n \n     \n \n \n \n \n Supermarket Income REIT plc                                        \n \n \n \n \n \n \n \n Rob Abraham / Mike Perkins / Chris McMahon      \n \n \n [email protected]     \n \n \n \n \n \n \n \n     \n \n \n \n \n Headland Consultancy  \n \n \n +44 (0)20 3805 4885 \n \n \n \n \n Susanna Voyle / Antonia Pollock / Dan Mahoney   \n \n \n [email protected]   \n \n \n \n \n \n \n \n \n \n \n \n \n   \n NOTES TO EDITORS:   \n   \n Supermarket Income REIT plc (LSE: SUPR, JSE: SRI), a FTSE 250 company, is the only LSE listed company dedicated to investing in grocery properties which are an essential part of national food infrastructure. The Company focuses on grocery stores which are predominantly omnichannel, fulfilling online and in-person sales and are let to leading supermarket operators in the UK and Europe. The portfolio was valued at £2.1 billion as at 31 December 2025. \n The Company's properties earn long-dated, secure, inflation-linked, growing rental income. SUPR targets a progressive dividend and the potential for long term capital growth. \n The Company's shares are traded on the LSE's Main Market and on the Main Board of the JSE Limited in South Africa.  \n Further information is available on the Company's website  www.supermarketincomereit.com   \n LEI: 2138007FOINJKAM7L537   \n \n \n CHAIR'S STATEMENT \n I am pleased to report yet another highly active period for the Company, focused on generating value for shareholders and positioning SUPR for further long-term growth. The team's tireless work on this front has been recognised by the market with the Company's shares trading closer to EPRA NTA, having traded at a discount of around 25% a little over a year ago. \n Our earnings were in line with market expectations, with the movement this half principally reflecting the temporary cash drag from the JV announced in April 2025, and one-off impact from our proactive decision to refinance and extend the term of our debt, at what is now broadly in line with market rates. The Company efficiently deployed this capital into earnings enhancing opportunities, with £398 million of acquisitions in the period. This is expected to contribute to a sustainable, growing dividend for FY27 onwards, with secure income which is underpinned by our inflation-linked leases let to tenants in the non-discretionary grocery space. \n The positive impact of our disciplined and efficient redeployment of capital has been enhanced by our sector specialism and the strength of our relationships in the grocery space as we have further diversified our asset type and tenant base. While expanding our core portfolio of large format, omnichannel supermarkets let to investment grade tenants in the UK, we have taken advantage of strong relative value opportunities with direct sale and lease back transactions for a portfolio of 20 Carrefour supermarkets purchased directly by the Company, and 10 Asda supermarkets purchased by the JV. These are all strategically important supermarket sites with long trading histories, generating attractive returns for our shareholders. These transactions exemplify our strategy of combining secure, inflation-linked income with assets that are critical to operators' omnichannel fulfilment needs. \n The quality of our assets is apparent in our improving valuations and it is pleasing to see a return to EPRA NTA growth. We see tailwinds for rental growth across the portfolio, supported by rising sales and robust profitability from the major supermarket groups, reinforced by the mission critical role of large format stores within the operators' omnichannel networks. This dynamic not only validates our investment thesis but also provides confidence in long term income growth. \n To support and sustain this momentum for shareholders, we are investing in our platform. We have welcomed a number of senior hires including Jamie Cowen, who brings over 30 years' experience in grocery real estate investment, having previously worked in senior investment and property development roles at Sainsbury's. Jamie's sector expertise and deep relationships further strengthen our origination and execution capability. Attracting talent of this calibre speaks to the scale of the opportunity ahead for SUPR and to the quality of the platform. \n Our highly efficient operating model will continue to drive portfolio growth and earnings as we scale and I am pleased to report that the EPRA cost ratio reduced to 9.2% in H1 (13.6% H1 2025), keeping us on track to deliver below 9% in the near term. \n The Company continues to focus on driving sustainable value across the portfolio. The Company's sustainability performance has been externally recognised with the achievement of an EPRA Sustainability Best Practice Recommendations (\"sBPR\") Gold Award for the first time. Engaging with our tenants on sustainability has continued to be a key priority for the Company and we look forward to reporting on our progress in this area in the Company's next Sustainability Report. \n Outlook \n As we look ahead, we remain mindful of broader macroeconomic uncertainty, including market volatility linked to the ongoing tensions in the Middle East. Against this backdrop, we have now deployed the proceeds of the JV into earnings enhancing assets and expect to deliver a sustainable, growing dividend for FY27 onwards. The Board reiterates its minimum target dividend of 6.18p for the year ending 30 June 2026 and as a result of the Company's investment activity over the last 12 months the Board is pleased to announce it is targeting a 2% dividend increase for the year ending 30 June 2027. Our strategic focus remains on sustainably growing earnings and dividends over time as the business benefits from the reinvestment of JV proceeds, operational efficiencies, and the contribution from recent acquisitions. \n In summary, we have a compelling pipeline, access to capital, and a highly motivated team in place with the right experience. With a fully aligned internal management structure and a platform built for efficiency and growth, SUPR is well placed to continue creating long‑term value for shareholders. I look forward to keeping you updated as we maintain the discipline, creativity and momentum demonstrated in the first half of the year - with a clear focus on enhancing our portfolio and delivering shareholder returns. \n   \n Nick Hewson \n Chair \n 10 March 2026 \n   \n \n CHIEF EXECUTIVE'S REVIEW \n   \n Business Review    \n Chief Executive, Robert Abraham   \n   \n  A growing and resilient grocery market \n   \n The non-discretionary and highly resilient UK grocery market has continued to demonstrate growth, with take ‑ home sales reaching a record £ 13.8 billion [7] in December 2025. The larger, established supermarket operators with extensive store networks have been the main beneficiaries of this, aided by the slow and restrictive planning system that creates high barriers to entry for new competitors. \n In the six months to 31 December 2025, SUPR's key tenants, Tesco and Sainsbury's gained market share driven by strong performance from existing store estates, following continued investment in price, product offering and customer experience. Both operators delivered volume growth ahead of the market, underpinning the market share gains. The UK's two largest grocers now have a combined market share of 45% [8] , up 50 basis points from December 2024. \n Asda's weaker performance was anticipated, with market share falling to 11.4% 8 in the period. The business' price-focused turnaround strategy is expected to have a near term impact on revenues. This, alongside the completion of Asda's significant investment into IT infrastructure and systems (Project Future) is expected to stabilise the business during 2026. \n Growth in online market underpins the essential role of omnichannel supermarkets \n The online grocery market has continued to grow, accounting for 12.6% 8 of the total market in December 2025, from 12.0% [9] in December 2024. Tesco and Sainsbury's have captured this growth, demonstrating strong online sales growth over the same period at 9.5% [10] and 11.9% 10   respectively. \n A key pillar of SUPR's strategy is to invest in strategically located omnichannel supermarkets, fulfilling both in-store and online shopping, capturing the online growth. The UK's major omnichannel grocers, Tesco, Sainsbury's, Asda, and Morrisons, benefit from substantial economies of scale and a pre-existing last-mile fulfilment network, which allows capital light expansion of online sales. Shorter delivery distances improve slot availability and lower per ‑ order operating costs. SUPR's focus on omnichannel stores means it is well positioned to benefit from continued growth in the online grocery market. \n SUPR has further established itself as the leading grocery landlord \n The business continues to recycle and deploy capital to significantly enhance future earnings growth. Total transaction volumes of £630 million during the first half of the year, comprised of £398 million in purchases at a blended net initial yield of 6.5% and the agreement to transfer five stores to the JV at a purchase price of £232 million. The rapid redeployment of capital receipts following the formation of the JV has generated enhanced returns as we continue to focus on investment into high-quality mission critical assets across the grocers' supply chains. \n Key transactions \n   \n ·      Asda sale & leaseback (November 2025) : £196 million acquisition of 10 omnichannel supermarkets let to Asda at a net initial yield of 7.4% through the JV. The team hand-picked the 10 preferred stores from a wider 20-store portfolio, based on its assessment of catchment dominance and a strong alternative occupier case. The attractive pricing presents strong relative value versus investment in long-let investment grade names, while mitigating downside risk through the focus on asset quality. SUPR contributed £98 million to this acquisition, reflecting its 50% share in the JV. \n ·      Sainsbury's convenience stores (October 2025) : £15.3 million acquisition of 10 convenience stores, completed at a net initial yield of 6.1% for 15-year index-linked leases, representing a 50 - 75 basis point spread to similar leases on a large format store. This expansion of SUPR's investment universe into convenience has allowed us to capture relative value. \n ·     Carrefour sale & leaseback (November 2025): €123 million acquisition of 20 omnichannel supermarkets [11] , let at an attractive net initial yield of 6.6%. This continued the rollout of our Carrefour sale and leaseback programme is a testament to the strong relationship we have cultivated with the operator. SUPR's portfolio in France is now of significant scale, standing at €235 million 11 across 46 11 assets geographically diversified across France. \n ·    £182 million in secondary market acquisitions: We continue to identify attractive opportunities in the secondary market in line with our core investment criteria, demonstrated by our acquisition of six further assets at an average yield of 6.1% for 12 years of income. \n   \n We continue to see increasing institutional interest in grocery assets, with early signs of core capital returning to the investment market, which highlights the attractiveness of SUPR's portfolio. This was demonstrated by the pricing achieved on the agreed terms for the transfer of five of SUPR's portfolio assets into the JV at 3% above 30 June 2025 book value. \n   \n Modest valuation growth driven by contractual rental uplifts \n   \n Cushman & Wakefield valued the Direct Portfolio as at 31 December 2025, and the properties in the JV were independently valued by Jones Lang LaSalle. These valuations are in accordance with the RICS Valuation - Global Standards which incorporate the International Valuation Standards and the RICS UK Valuation Standards edition current at the valuation date. \n   \n The Direct Portfolio was valued at a total market value of £1,750 million (including assets held for sale). During the period, the Company agreed to transfer five stores into the JV for a total consideration of £232 million [12] (3% above June 2025 book value). \n   \n The Joint Venture properties were valued at £613 million, reflecting a combined Portfolio value of £2,057 million (including assets held for sale), and a like-for-like valuation increase across the Company's Portfolio of 1.3% vs MSCI All Property Capital Growth Index during the same period which was up 0.4%. \n   \n The valuation increase has been primarily driven by contractual rent reviews, with 82% linked to inflation and 2% on a fixed basis as at 31 December 2025. The average annualised rental increase from rent reviews during the period was 3.8%.   \n   \n \n \n \n \n UK supermarkets \n \n \n 31 December 2025 \n \n \n \n \n NIY \n \n \n 5.8% 3 \n \n \n \n \n NRY \n \n \n 5.3% 3 \n \n \n \n \n NEY [13] (Direct Portfolio) \n \n \n 5.7% \n \n \n \n \n NEY 13 (Joint Venture) \n \n \n 6.2% \n \n \n \n \n   \n   \n Established an efficient platform for growth \n   \n The internalisation has created a simplified management structure and generated significant cost savings. SUPR's EPRA cost ratio is 9.2% today and is expected to reduce to below 9% in the near term. The benefit of this can be compounded over time as SUPR's asset base continues to scale. \n   \n Internalising the management structure has also allowed SUPR to continue investing in its team of sector experts, most recently with the hire of Jamie Cowen as Strategy Director and Justin Upton as Head of Investment. Jamie joins from Sainsbury's, where he worked as the Director of Estates & Investment, and brings over 30 years' experience in grocery real estate investment and operations to the business. Justin brings 25 years' experience in real estate capital markets having worked at Henderson Global Investors, M&G Investments and most recently as CIO at Urban Logistics REIT.    \n   \n A compelling pipeline of opportunities \n   \n The team has continued to identify and secure a healthy pipeline of opportunities in the grocery real estate market, with £500 million of UK assets available in our core target UK supermarkets. We are also tracking further opportunities, both in terms of asset classes and geographically. This includes further investment in grocery-anchored retail parks and European supermarkets, as well as expanding SUPR's investment universe to encompass grocery distribution. Continued growth of the platform will enable further diversification, both geographically and by asset class. \n   \n We have demonstrated the attractiveness of grocery real estate to institutional capital and the team's ability to partner with third party capital providers, through the rapid expansion of the JV, to £845 million including five stores for which the Company agreed terms to transfer to the JV in November 2025. JVs are an attractive, capital-light route to scale as SUPR seeks to take advantage of the breadth of investment opportunities currently available. \n   \n Driving sustainable value across the portfolio   \n The Company continues to make strong progress across all three pillars of its sustainability strategy, as detailed in the most recent Sustainability Report published in September 2025. The Company's commitment to improving ESG performance has been recognised externally, with the Company achieving its first EPRA Sustainability Best Practice Recommendations (sBPR) Gold Award in September 2025.   \n     \n Understanding tenant sustainability performance, particularly energy usage, continues to be a key priority for the Company. Strong data-request responses in the period is a reflection of the Company's proactive engagement and collaboration with tenants and property managers. Grant Thornton is again providing independent assurance over the Company's Scope 1, 2 and 3 emissions, and a refreshed tenant ESG assessment has been implemented to deepen understanding of tenant targets and initiatives. The Company will also introduce Munich RE's Climate Risk Intelligence tool to enhance climate risk analysis for its next TCFD Report. \n Community engagement remains a core pillar of the Company's Sustainability Strategy. In December, the Company was proud to support its charity partner, FareShare, with more than 30 hours of volunteering in Tesco stores as part of the FareShare Winter Food Collection drive. Looking ahead, the Company is planning additional volunteering events throughout 2026 to support its target of having more than 85% of employees participate in volunteering each year. \n The Company's next annual Sustainability Report will be published alongside the Full Year Results and will provide an update on progress against the Company's Sustainability Strategy.  \n \n Outlook \n We have continued to build on the delivery of our strategic initiatives during the first half of the year. Efficient capital recycling has been at the heart of transforming SUPR's earnings profile, with £630 million in transaction volumes [14] . This, in part, has been achieved through the scaling of the JV to £845 million 4 , since its inception in May 2025. \n We have streamlined the SUPR platform following the internalisation of management, supported by several senior investment hires reinforcing the Company's sector specialism, and remain on target to achieve one of the lowest EPRA cost ratios in the sector at below 9% in the near term. \n This provides a strong basis from which to further grow the platform. We are currently tracking over £500 million in opportunities in our core UK markets, with further opportunities across Europe and the broader grocery real estate value chain. The Company's focus is to scale and diversify the portfolio keeping UK omnichannel supermarket assets at the core, while leveraging the team's sector specialism to broaden into adjacencies within grocery real estate that deliver long-dated, inflation-linked income from grocery tenants. \n In the meantime, we have paved the way for further growth in shareholder returns, with the Board reiterating its 6.18 pence minimum dividend target for FY26 and targeting a sustainable 2% per annum dividend increase for FY27 onwards. \n   \n KEY PERFORMANCE INDICATORS \n Our objective is to provide secure, inflation-linked, long-dated income from grocery property. Set out below are the key performance indicators we use to track our progress. \n \n \n \n \n \n KPI \n \n \n Definition \n \n \n Performance \n \n \n \n \n 1.    Total Shareholder Return \n \n \n Shareholder return is one of the Group's principal measures of performance. \n Total Shareholder Return (\"TSR\") is measured by the movement in the Company's net return index which reflects movements in share price over the period plus dividends reinvested in shares on the ex-dividend date, expressed as a percentage of the share price at the start of the period. \n \n \n 0.1% for the six months ended 31 December 2025 \n \n (Six months ended \n31 December 2024: (-1.1%) \n   \n (24.0% for the year to 30 June 2025) \n \n \n \n \n 2.    Total Accounting Return   \n \n \n Growth in the Group's NTA over a period plus dividends paid for that period   \n \n \n 4.0% for the six months ended 31 December 2025 \n   \n (Six months ended \n31 December 2024: (4.1%)) \n   \n (Year ended 30 June 2025: 7.2%)  \n \n \n \n \n 3.    EPRA EPS \n \n \n A measure of EPS designed by EPRA to present underlying earnings from core operating activities.   \n \n \n 2.7 pence per share for the six months ended 31 December 2025  \n   \n (Six months ended \n31 December 2024: 3.0 pence) \n   \n (Year ended 30 June 2025 :  6.0  pence )   \n   \n \n \n \n \n 4.    WAULT \n \n \n WAULT measures the average unexpired lease term of the Property Portfolio, weighted by rent. \n \n \n 12 years WAULT as at 31 December 2025 \n (As at 30 June 2025: 11 years) \n \n \n \n \n 5.    EPRA NTA per share \n \n \n The value of our assets (based on an independent valuation) less the book value of our liabilities, attributable to Shareholders and calculated in accordance with EPRA guidelines. EPRA states three measures of NAV to be used; of which the Group deem EPRA NTA as the most meaningful measure. See Note 26 for more information. \n \n \n 87.5 per share as at 31 December 2025 (As at 30 June 2025: 87.1 pence per share) \n \n \n \n \n 6.    Net Loan to Value \n \n \n Net borrowings divided by the market value of investment properties reported on a proportionally consolidated basis.  \n \n \n  45.0% as at 31 December 2025 (As at 30 June 2025: 31%) \n   \n \n \n \n \n   \n The Group uses alternative performance measures including the European Public Real Estate (\"EPRA\") Best Practice Recommendations (\"BPR\") to supplement its IFRS measures as the Board considers that these measures give users of the financial statements the best understanding of the underlying performance of the Group's property portfolio. The EPRA measures are widely recognised and used by public real estate companies and investors and seek to improve transparency, comparability and relevance of published results in the sector.   \n Reconciliations between EPRA measures and the IFRS financial statements can be found in Notes 12 and 26 to the financial statements.  \n   \n EPRA PERFORMANCE INDICATORS \n The table below shows additional performance measures, calculated in accordance with the Best Practices Recommendations of the European Public Real Estate Association (EPRA). We provide these measures to aid comparison with other European real estate businesses. \n   \n For a full reconciliation of all EPRA performance indicators, please see the Notes to EPRA measures within the supplementary section of the interim financial statements. \n   \n \n \n \n \n Measure \n \n \n Definition \n \n \n Performance \n \n \n \n \n 1.    EPRA EPS \n \n \n A measure of EPS designed by EPRA to present underlying earnings from core operating activities. \n \n \n  2.7 pence per share for the \nsix months ended 31 December 2025 (3.0 pence per share for the six months ended 31 December 2024) \n \n \n \n \n 2.    EPRA Net Reinstatement Value (NRV) per share \n \n \n An EPRA NAV per share metric which assumes that entities never sell assets and aims to represent the value required to rebuild the entity. \n \n \n 98.7 pence per share as at \n31 December 2025 (As at \n30 June 2025: 96.0 pence per share) \n \n \n \n \n 3.    EPRA Net Tangible Assets (NTA) per share \n \n \n An EPRA NAV per share metric which assumes entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax. \n \n \n 87.5 pence per share as at \n31 December 2025 (As at \n30 June 2025: 87.1 pence per share) \n \n \n \n \n 4.    EPRA Net Disposal Value (NDV) per share \n \n \n An EPRA NAV per share metric which represents the Shareholders' value under a disposal scenario, where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax. \n \n \n 87.5 pence per share as at \n31 December 2025 (As at \n30 June 2025: 88.0 pence \nper share) \n \n \n \n \n 5.    EPRA Net Initial Yield (NIY) & EPRA \"Topped-Up\" Net Initial Yield \n \n \n Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property operating expenses, divided by the market value of the property, increased with (estimated) purchasers' costs. \n \n \n 6.0% NIY and \"Topped Up\" as at 31 December 2025 (As at 30 June 2025: NIY 5.8% & \"Topped Up\" 5.9%) \n \n \n \n \n 6.    EPRA Vacancy Rate \n \n \n Estimated Market Rental Value (ERV) of vacant space divided by ERV of the whole portfolio. \n \n \n 0.2% as at 31 December 2025 (As at 30 June 2025: 0.3%) \n \n \n \n \n 7.    EPRA Cost Ratio (Including direct vacancy costs) \n \n \n Administrative & operating costs (including costs of direct vacancy) divided by gross rental income. \n \n \n 9.2% for the six months ended 31 December 2025 \n \n(Year ended 30 June 2025: 13.0%) \n \n \n \n \n 8.    EPRA Cost Ratio (Excluding direct vacancy costs) \n \n \n Administrative & operating costs (excluding costs of direct vacancy) divided by gross rental income. \n \n \n 8.8% for the six months ended 31 December 2025 \n(Year ended 30 June 2025: 12.4%) \n \n \n \n \n 9.    EPRA LTV \n \n \n Net debt divided by total property portfolio and other eligible assets. \n \n \n 49.0% as at 31 December 2025 (As at 30 June 2025: 36.1%) \n \n \n \n \n 10.  EPRA Like-for-like Rental Growth \n \n \n Changes in net rental income for those properties held for the duration of both the current and comparative reporting period. \n \n \n 0.8% for the six months to 31 December 2025 (six months to 31 December 2024: 2.1%) \n \n \n \n \n 11.  EPRA Capital Expenditure \n \n \n Amounts spent for the purchase and development of investment properties (including any capitalised transaction costs). \n \n \n £423.6 million for the six months ended 31 December 2025 (£82.1 million for the year ended 30 June 2025) \n \n \n \n \n   \n   \n   \n FINANCIAL OVERVIEW   \n   \n Overview \n   \n This has been another very busy period for the Company, with a focus on efficient redeployment of capital further to the completion of our Joint Venture in May 2025. Our priority is to support a sustainable and growing dividend for shareholders. \n   \n During the six months to 31 December 2025, we completed £398 million of acquisitions [15] at a blended net initial yield of 6.5%, which will deliver a meaningful improvement in earnings. As anticipated, the redeployment period resulted in a short-term impact on rental income, and together with a one-off impact from our proactive decision to refinance and extend the term of our debt, at what is now broadly in line with the incremental cost of debt, resulted in EPRA earnings of £33.8 million, or 2.7 pence per share, representing a 10% reduction compared with the prior period. \n   \n The portfolio continues to demonstrate strong operational performance. We captured rental growth from our predominantly inflation-linked leases, achieving an average annualised rental uplift of 3.8% from rent reviews completed during the period. We remain focused on disciplined cost control, and, supported by the savings achieved through internalisation, our EPRA cost ratio reduced to 9.2%, down from 13.6% in the prior period. \n   \n The portfolio was valued at £2.1 billion (including our share of joint venture and assets held for sale), delivering like ‑for-like valuation growth of 1.3% over the six months. This compares favourably with the MSCI All Property Capital Growth Index, which increased by 0.4%, and highlights the quality and resilience of our assets. EPRA NTA increased by 0.5% to 87.5 pence per share, with valuation gains across the existing portfolio partially offset by purchaser costs associated with the £398 million of acquisitions (including share of joint ventures). Total Accounting Return (\"TAR\") for the period was 4.0%, with 88% of the return underpinned by income from a high-quality tenant base. \n   \n Strengthening the balance sheet remains a core strategic objective. In July 2025, we successfully issued our debut £250 million unsecured bond, an important milestone for the Company. The issuance attracted strong demand from a broad range of institutional investors, with an orderbook that peaked at over £985 million. \n   \n The actions taken over the past twelve months have positioned the Company strongly for the next phase of growth. We remain focused on delivering a sustainable and growing dividend and are pleased to confirm a 2% per annum dividend increase for FY27 onwards. \n   \n Presentation of financial information \n   \n The condensed interim financial information is prepared under IFRS, where the Group's interests in joint venture are shown as a single line item in the income statement and balance sheet, and its subsidiaries are consolidated at 100 per cent. Internally, management reviews the Group's results on a basis that adjusts for these forms of ownership to present a proportionate share. \n   \n The Group uses alternative performance measures including the European Public Real Estate (\"EPRA\") Best Practice Recommendations (\"BPR\") to supplement its IFRS measures as the Board considers that these measures give users of the financial statements the best understanding of the underlying performance of the Group's property portfolio. The EPRA measures are widely recognised and used by public real estate companies and investors and seek to improve transparency, comparability and relevance of published results in the sector. \n   \n Reconciliations between EPRA measures and the IFRS financial statements can be found in notes 12 and 26 to the financial statements. \n   \n Summarised Financial results   \n   \n The below table provides a summary of EPRA earnings on a proportionally consolidated basis, being inclusive of the Group's share of the Joint Venture's profit for the six months ended 31 December 2025. \n                      \n \n \n \n \n Proportionally consolidated \n \n \n   \n \n \n \n \n \n Six months to 31 December 2025 \n (£'000) \n \n \n Six months to 31 December 2024 \n (£'000) \n \n \n Change \n (£'000) \n \n \n \n \n Net rental income \n \n \n \n \n \n \n \n \n 56,570 \n \n \n 57,829 \n \n \n (1,259) \n \n \n \n \n Management fees \n \n \n \n \n \n \n \n \n 607 \n \n \n - \n \n \n 607 \n \n \n \n \n Net income \n \n \n \n \n \n \n \n \n \n \n \n 57,177 \n \n \n 57,829 \n \n \n (652) \n \n \n \n \n Administrative expenses \n \n \n \n \n \n \n \n \n (5,168) \n \n \n (7,575) \n \n \n 2,407 \n \n \n \n \n Net finance costs \n \n \n \n \n \n \n \n \n (18,358) \n \n \n (12,980) \n \n \n (5,378) \n \n \n \n \n Exceptional items \n \n \n \n \n \n \n \n \n 184 \n \n \n 113 \n \n \n 71 \n \n \n \n \n EPRA earnings \n \n \n \n \n \n \n \n \n 33,835 \n \n \n 37,387 \n \n \n (3,552) \n \n \n \n \n Valuation surplus 1 \n \n \n \n \n \n \n \n \n 5,236 \n \n \n 7,202 \n \n \n (1,966) \n \n \n \n \n Fair value movement on derivatives \n \n \n \n \n \n (3,183) \n \n \n (8,320) \n \n \n 5,137 \n \n \n \n \n Exceptional items \n \n \n \n \n \n \n \n \n (184) \n \n \n (113) \n \n \n (71) \n \n \n \n \n IFRS profit before tax \n \n \n \n \n \n \n \n \n 35,704 \n \n \n 36,156 \n \n \n (452) \n \n \n \n \n   \n 1.        Change in fair value of investment properties and proportionate share of change in fair value of Joint Venture assets and assets held for sale \n Net rental income   \n   \n The portfolio generated net rental income of £56.6 million for the six months ended 31 December 2025 (31 December 2024: £57.8 million). The modest decrease reflects the short‑term impact of redeploying the proceeds received following completion of our joint venture in May 2025. \n   \n On a like‑for‑like basis, EPRA net rental income increased by 0.8% (31 December 2024: 2.1%). During the period, the Group completed 19 rent reviews, representing an uplift of £1.5 million compared with previous passing rent, or 4.9% (or 3.8% on an annualised basis). This increase more than offset the rent reduction associated with the three lease renewals completed in February 2025. \n   \n Direct property expenditure remained stable at £0.3 million (31 December 2024: £0.3 million). The portfolio continues to deliver a strong gross‑to‑net margin of 99.5% (31 December 2024: 99.4%), one of the highest in the sector. This performance reflects the strength of our single‑let strategy, strong covenant quality of our tenant base, and triple net lease structure. \n   \n Administrative expenses and EPRA cost ratio   \n   \n We remain focused on operational efficiency and disciplined cost management. Supported by the significant cost savings delivered through internalisation, administrative expenses reduced by £2.4 million, representing a 32% decrease compared with the prior period. \n   \n These efficiencies contributed to a further improvement in our cost base, with the EPRA cost ratio declining by 440 basis points to 9.2% for the period. We remain firmly on track to achieve our target EPRA cost ratio of below 9%. \n   \n \n \n \n \n \n \n \n 31 December \n \n \n 31 December  \n \n \n \n \n \n \n \n 2025   \n \n \n 2024  \n \n \n \n \n EPRA cost ratio including direct vacancy costs  \n \n \n 9.2 %  \n \n \n 13.6 %  \n \n \n \n \n EPRA cost ratio excluding direct vacancy costs  \n \n \n 8.8 %  \n \n \n 13.3 %  \n \n \n \n \n \n Net finance costs   \n   \n Net finance costs (including our share of joint ventures) increased by £5.4 million to £18.4 million. This was primarily driven by an increase in the weighted average cost of debt from 3.6% to 4.8%, alongside a £55.9 million rise in the average drawn debt balance compared with the prior period. \n   \n We continue to actively manage our debt profile, and in July 2025 we took advantage of favourable market conditions to issue our debut £250 million unsecured bond. The resulting uplift in finance costs is expected to be a one‑off impact in the current financial year. With our financing costs now broadly aligned to prevailing market rates and supported by a diversified mix of funding sources, we anticipate our medium‑term cost of debt to remain within the 4.7% to 5.0% range. \n   \n EPRA earnings   \n   \n The Company delivered EPRA earnings of £33.8 million for the six months ended 31 December 2025 (31 December 2024: £37.4 million). EPRA earnings per share were 2.7 pence, compared with 3.0 pence in the prior period. \n   \n The reduction primarily reflects the timing of the redeployment of proceeds received following completion of the joint venture, together with the one-off increase in interest costs associated our proactive decision to refinance and extend the term of our debt. These impacts have offset the cost savings achieved from internalisation. \n   \n The Board remains confident in the Company's strategic direction and its ability to generate sustainable long‑term value for shareholders. \n   \n A full reconciliation between IFRS and EPRA earnings can be found in note 12 of the Financial Statements.   \n   \n EPRA net tangible assets and IFRS net assets   \n   \n \n \n \n \n   \n Proportionally consolidated   \n \n \n 31 December 2025   \n £'000   \n \n \n 30 June 2025 \n £'000 \n \n \n \n \n Investment properties  \n \n \n 1,818,494 \n \n \n 1,618,169 \n \n \n \n \n Fair value of financial asset held at amortised cost  \n \n \n 7,380 \n \n \n 7,280 \n \n \n \n \n Total portfolio value    \n \n \n 1,825,874 \n \n \n 1,625,449 \n \n \n \n \n Assets held for sale \n \n \n 230,929 \n \n \n - \n \n \n \n \n Bank and other borrowings  \n \n \n (980,083) \n \n \n (603,602) \n \n \n \n \n Cash  \n \n \n 54,943 \n \n \n 100,937 \n \n \n \n \n Other net liabilities  \n \n \n (39,300) \n \n \n (34,711) \n \n \n \n \n EPRA net tangible assets   \n \n \n 1,092,363 \n \n \n 1,088,073 \n \n \n \n \n Fair value of interest rate derivatives  \n \n \n 5,054 \n \n \n 11,224 \n \n \n \n \n Fair value adjustment for financial assets held at amortised cost  \n \n \n 3,966 \n \n \n 3,955 \n \n \n \n \n IFRS net assets   \n \n \n 1,101,383 \n \n \n 1,103,252 \n \n \n \n \n   \n \n \n \n \n \n Movement in EPRA NTA per share   \n \n \n Pence   \n \n \n \n \n EPRA NTA per share at 3 0 June 2025 \n \n \n 87.1 \n \n \n \n \n EPRA earnings  \n \n \n 2.7 \n \n \n \n \n Dividends paid  \n \n \n (3.1) \n \n \n \n \n Realised and unrealised gains  \n \n \n 0.5 \n \n \n \n \n Other  \n \n \n 0.3 \n \n \n \n \n EPRA NTA per share as at 31 December 2025 \n \n \n 87.5 \n \n \n \n \n   \n EPRA Net Tangible Assets (\"EPRA NTA\") remains the Group's primary net asset measure, as it captures both income and capital returns while excluding the fair value of interest rate derivatives and incorporating the revaluation to fair value of investment properties held at amortised cost. \n   \n At 31 December 2025, EPRA NTA totalled £1,092 million, equivalent to 87.5 pence per share, representing a 0.5% increase since 30 June 2025. Realised and unrealised gains from the investment property portfolio were largely offset by purchaser costs associated with the £398 million [16] of grocery real estate acquired during the period. \n   \n Including dividends paid, the Group generated a Total Accounting Return (\"TAR\") of 4.0%, compared with 4.1% in the prior period. \n   \n Portfolio Valuation   \n   \n Our Portfolio, which includes share of joint ventures, the fair value of financial assets held at amortised cost, and assets held for sale, was valued at £ 2,057 million as set out below:  \n   \n \n \n \n \n Movement in portfolio valuation   \n \n \n £'000   \n \n \n \n \n Group opening property portfolio valuation   \n \n \n 1,415,819 \n \n \n \n \n Property additions  \n \n \n 300,013 \n \n \n \n \n Transfer to assets held for sale  \n \n \n (224,980) \n \n \n \n \n Capital expenditure  \n \n \n 19,385 \n \n \n \n \n Revaluation movement  \n \n \n 1,012 \n \n \n \n \n Foreign exchange movement  \n \n \n 720 \n \n \n \n \n Group closing property portfolio valuation   \n \n \n 1,511,969 \n \n \n \n \n Fair value of financial assets held at amortised cost  \n \n \n 7,380 \n \n \n \n \n Share of investment properties held in joint venture  \n \n \n 306,525 \n \n \n \n \n Assets held for sale \n \n \n 230,929 \n \n \n \n \n Total property portfolio value   \n \n \n 2,056,803 \n \n \n \n \n   \n Valuation yields remained broadly stable over the first six months of the year, and the portfolio delivered like‑for‑like valuation growth of 1.3%, comparing favourably with the MSCI All Property Capital Growth Index, which recorded an increase of 0.4% over the same period. \n   \n Net Debt, Leverage and Financing   \n   \n Adjusted net debt is a proportionally consolidated measure that includes the Group's share of joint ventures and is defined as borrowings less cash and cash equivalents. \n   \n The Group's adjusted net debt increased by £422 million during the first six months of the year, closing at £925 million (30 June 2025: £503 million). This increase was primarily driven by the redeployment of net proceeds received from the transfer of eight supermarket assets into the Group's strategic joint venture with Blue Owl in May 2025. Including post period-end transactions, the pro‑forma loan‑to‑value (LTV) ratio is 43%. \n   \n The Group also considers net debt to EBITDA as a key performance indicator for monitoring leverage. Including post‑period‑end transactions, the Group's net debt to EBITDA ratio is 8.2x, although this is expected to reduce with the benefit of a full period of income from properties acquired during the year. The Group anticipates operating within a medium‑term target range of 7.0x to 8.0x. \n   \n   Financing   \n   \n \n \n \n \n \n \n \n \n \n \n   \n 31 Dec 2025 \n \n \n   \n 30 Jun 2025   \n \n \n \n \n Undrawn facilities 1   \n \n \n \n \n \n £173m \n \n \n £350m  \n \n \n \n \n Loan to value  \n \n \n \n \n \n 43% 1 \n \n \n 31%  \n \n \n \n \n Net debt / EBITDA ratio (period-end)  \n \n \n \n \n \n 8.2x 1 \n \n \n 5.1x  \n \n \n \n \n Weighted average cost of debt (at period end)  \n \n \n \n \n \n 4.8% \n \n \n 4.2%  \n \n \n \n \n Interest cover  \n \n \n \n \n \n 3.1x \n \n \n 3.8x  \n \n \n \n \n Average debt maturity  \n \n \n \n \n \n 3.0 years \n \n \n 3.9 years  \n \n \n \n \n % of drawn debt which is fixed/hedged 1 \n \n \n \n \n \n 92% \n \n \n 100%  \n \n \n \n \n   \n 1.   Including post period end transactions (and share of joint ventures) \n   \n The Group continued to actively manage its debt structure during the six‑month period, executing a series of strategic financing transactions across multiple markets. In July 2025, we successfully issued our debut £250 million unsecured bond, marking an important milestone for the Company. The issuance attracted strong demand from a broad base of institutional investors, with an order book that peaked at more than £985 million. \n   \n At the period end, the Group's weighted average debt maturity is 3.0 years. Including post‑period‑end transactions, the Group had £228 million of undrawn facilities and available cash, which we expect to deploy into the Group's attractive pipeline of investment opportunities and to repay near‑term maturing debt facilities. \n   \n The Group's interest rate exposure is mitigated through a combination of fixed‑rate debt and derivative instruments, including interest rate swaps and caps. 92% of the Group's drawn debt is fixed or hedged; this is expected to increase to 100% following completion of the sale of the five supermarket assets to the joint venture. Over the medium term, the Group expects its weighted average cost of debt to range between 4.7% and 5.0%. \n   \n The Group continues to monitor compliance with its banking covenants and maintains substantial headroom on both LTV and ICR metrics. As at 31 December 2025, property values would need to fall by approximately 20% before breaching the gearing covenant, while net operating income would need to decline by 44% before triggering an interest cover covenant breach. \n   \n The Company is committed to maintaining its current credit rating, and were pleased to report that Fitch Ratings, as part of its annual review, reaffirmed the Group's BBB+ rating with a stable outlook.  \n   \n   \n PRINCIPAL RISKS AND UNCERTAINTIES \n   \n The risk management framework is designed to identify, evaluate, and manage risks in a manner consistent with the Group's strategic objectives. The Audit and Risk Committee support the Board in its oversight of the Group's risk management and internal control systems. It conducts regular reviews of the Group's risk register as part of its oversight of risk management and internal controls. All principal risks and uncertainties set out on pages 49 to 51 of our 2025 Annual Report and Accounts remain relevant, with no significant changes during the period. A small refinement has been made to the first risk below that there can be no guarantee that the dividend will grow in line with target, instead of inflation, to reflect the updated guidance of a target minimum sustainable dividend uplift of 2% p.a. for FY27 onwards; this does not materially alter the overall risk profile. \n   \n A summary of those principal risks and uncertainties is provided below:  \n   \n \n \n \n \n ·    \n \n \n There can be no guarantee that the dividend will grow in line with target \n \n \n \n \n ·    \n \n \n A significant fall in property valuations \n \n \n \n \n ·    \n \n \n Use of floating rate debt will expose the business to underlying interest rate movement \n \n \n \n \n ·    \n \n \n Major event / business interruption \n \n \n \n \n ·    \n \n \n The default of one or more of our grocery tenants \n \n \n \n \n ·    \n \n \n Increased competition may impact the Group's ability to source assets \n \n \n \n \n ·    \n \n \n Key person risk \n \n \n \n \n ·    \n \n \n Cyber Security & Disaster Recovery \n \n \n \n \n ·    \n \n \n Changes in regulatory policy could lead to our assets becoming unlettable \n \n \n \n \n ·    \n \n \n We operate as a UK REIT and have a tax-efficient corporate structure, with advantageous consequences for UK Shareholders. Any change to our tax status or in UK tax legislation could affect our ability to achieve our investment objectives and provide favourable returns to Shareholders \n \n \n \n \n   \n   \n DIRECTORS' RESPONSIBILITY STATEMENT \n   \n The Directors confirm that, to the best of their knowledge, this set of interim consolidated financial statements has been prepared in accordance with IAS 34 as adopted by the United Kingdom and that the operating and financial review included herein provides a fair review of the information required by DTR 4.2.7 and DTR 4.2.8 of the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority, namely: \n   \n ·     an indication of important events that have occurred during the period and their impact on the interim consolidated financial statements and a description of the principal risks and uncertainties for the remaining months of the Group's financial year; and \n ·      disclosures of any material related party transactions in the period. These are included in Note 25.  \n A full list of Directors of the Company can be found at the end of this interim report. Shareholder information is as disclosed on the Supermarket Income REIT plc website. \n   \n For and on behalf of the Board \n   \n Nick Hewson \n Chair \n 10 March 2026 \n \n   \n INDEPENDENT REVIEW REPORT TO SUPERMARKET INCOME REIT PLC \n Conclusion \n Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2025 is not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. \n   \n We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2025 which comprises the Interim Consolidated Statement of Comprehensive Income, Interim Consolidated Statement of Financial Position, Interim Consolidated Statement of Changes in Equity, Interim Consolidated Cash Flow Statement and the related notes. \n   \n Basis for conclusion \n We conducted our review in accordance with the International Standard on Review Engagements (UK) 2410, \"Review of Interim Financial Information Performed by the Independent Auditor of the Entity\" (\"ISRE (UK) 2410\"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. \n   \n As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with UK adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK adopted International Accounting Standard 34, \"Interim Financial Reporting\". \n   \n Conclusions relating to going concern \n Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. \n   \n This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410, however future events or conditions may cause the Group to cease to continue as a going concern. \n   \n Responsibilities of directors \n The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. \n   \n In preparing the half-yearly financial report, the directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. \n   \n Auditor's responsibilities for the review of the financial information \n In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report. \n   \n Use of our report \n Our report has been prepared in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority and for no other purpose.  No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent.  Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability. \n   \n BDO LLP \n Chartered Accountants \n London, UK \n 10 March 2026 \n   \n BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). \n \n \n InterIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME \n For the six month period ended 31 December 2025 \n \n \n \n \n \n \n \n Notes \n \n \n Unaudited \n Six months to \n 31 December 2025 \n £'000 \n \n \n Unaudited \n Six months to \n 31 December 2024 \n £'000 \n \n \n Audited \n Year to \n 30 June 2025 \n £'000 \n \n \n \n \n \n \n Gross rental income \n \n \n 5 \n \n \n 48,897 \n \n \n 58,171 \n \n \n 114,009 \n \n \n \n \n Service charge income \n \n \n 5 \n \n \n 4,607 \n \n \n 4,266 \n \n \n 9,044 \n \n \n \n \n Service charge expense \n \n \n 6 \n \n \n (4,919) \n \n \n (4,608) \n \n \n (9,819) \n \n \n \n \n Net Rental Income \n \n \n   \n \n \n 48,585 \n \n \n 57,829 \n \n \n 113,234 \n \n \n \n \n Administrative and other expenses \n \n \n 7 \n \n \n (5,010) \n \n \n (7,575) \n \n \n (14,469) \n \n \n \n \n Other income \n \n \n 15 \n \n \n 1,214 \n \n \n - \n \n \n 305 \n \n \n \n \n Operating profit before changes in fair value of investment properties, share of income from joint venture and loss on disposals \n \n \n \n \n \n 44,789 \n \n \n 50,254 \n \n \n 99,070 \n \n \n \n \n Changes in fair value of investment properties \n \n \n 14 \n \n \n 5,820 \n \n \n 7,202 \n \n \n 28,001 \n \n \n \n \n Termination fee \n \n \n 25 \n \n \n - \n \n \n - \n \n \n (20,800) \n \n \n \n \n Share of income from joint venture \n \n \n 15 \n \n \n 2,940 \n \n \n - \n \n \n 1,540 \n \n \n \n \n Loss on disposal of investment properties \n \n \n \n \n \n - \n \n \n - \n \n \n (1,327) \n \n \n \n \n Operating profit \n \n \n   \n \n \n 53,549 \n \n \n 57,456 \n \n \n 106,484 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Finance income \n \n \n 10 \n \n \n 4,264 \n \n \n 10,536 \n \n \n 19,688 \n \n \n \n \n Finance expense \n \n \n 10 \n \n \n (19,272) \n \n \n (23,516) \n \n \n (46,673) \n \n \n \n \n Changes in fair value of interest rate derivatives \n \n \n   \n 20 \n \n \n (2,837) \n \n \n (8,320) \n \n \n   \n (18,842) \n \n \n \n \n Profit before taxation \n \n \n   \n \n \n 35,704 \n \n \n 36,156 \n \n \n 60,657 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Tax credit for the period \n \n \n 11 \n \n \n 617 \n \n \n 374 \n \n \n 871 \n \n \n \n \n Profit for the period \n \n \n   \n \n \n 36,321 \n \n \n 36,530 \n \n \n 61,528 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Items to be reclassified to profit or loss in subsequent periods \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Fair value movements of interest rate derivatives \n \n \n 20 \n \n \n - \n \n \n (730) \n \n \n (1,539) \n \n \n \n \n Foreign exchange movement \n \n \n \n \n \n (19) \n \n \n 120 \n \n \n (144) \n \n \n \n \n Total comprehensive income for the period \n \n \n   \n \n \n 36,302 \n \n \n 35,920 \n \n \n 59,845 \n \n \n \n \n Total comprehensive income for the period attributable to ordinary shareholders \n \n \n   \n \n \n 36,302 \n \n \n 35,920 \n \n \n 59,845 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Earnings per share - basic (pence) \n \n \n \n \n \n 2.9p \n \n \n 2.9p \n \n \n  4.9p \n \n \n \n \n Earnings per share - diluted (pence) \n \n \n 12 \n \n \n 2.9p \n \n \n 2.9p \n \n \n  4.9p \n \n \n \n \n   \n   \n INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION \n As at 31 December 2025 \n \n \n \n \n \n \n \n Notes \n \n \n Unaudited \n 31 December 2025 \n £'000 \n \n \n Audited \n 30 June 2025 \n £'000 \n \n \n Unaudited \n   31 December 2024 \n £'000 \n \n \n \n \n \n \n Non-current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Investment properties \n \n \n 14 \n \n \n 1,511,969 \n \n \n 1,415,819 \n \n \n 1,763,040 \n \n \n \n \n Investment in joint venture \n \n \n 15 \n \n \n 95,794 \n \n \n 96,556 \n \n \n - \n \n \n \n \n Financial asset at amortised cost \n \n \n 17 \n \n \n 11,346 \n \n \n 11,235 \n \n \n 11,130 \n \n \n \n \n Interest rate derivatives \n \n \n 20 \n \n \n 3,227 \n \n \n 3,133 \n \n \n 9,327 \n \n \n \n \n Deferred tax asset \n \n \n \n \n \n 1,627 \n \n \n 1,011 \n \n \n 514 \n \n \n \n \n Right of use asset \n \n \n \n \n \n 110 \n \n \n - \n \n \n - \n \n \n \n \n Equipment \n \n \n \n \n \n 31 \n \n \n 32 \n \n \n - \n \n \n \n \n Total non-current assets \n \n \n   \n \n \n 1,624,104 \n \n \n 1,527,786 \n \n \n 1,784,011 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Assets held for sale \n \n \n 16 \n \n \n 230,929 \n \n \n - \n \n \n 62,950 \n \n \n \n \n Interest rate derivatives \n \n \n 20 \n \n \n 1,827 \n \n \n 8,091 \n \n \n 13,071 \n \n \n \n \n Trade and other receivables \n \n \n 18 \n \n \n 132,684 \n \n \n 119,612 \n \n \n 11,244 \n \n \n \n \n Cash and cash equivalents \n \n \n \n \n \n 48,036 \n \n \n 95,281 \n \n \n 40,631 \n \n \n \n \n Total current assets \n \n \n   \n \n \n 413,476 \n \n \n 222,984 \n \n \n 127,896 \n \n \n \n \n Total assets \n \n \n   \n \n \n 2,037,580 \n \n \n 1,750,770 \n \n \n 1,911,907 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-current liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Borrowings \n \n \n 21 \n \n \n 781,080 \n \n \n 603,602 \n \n \n 664,700 \n \n \n \n \n Trade and other payables \n \n \n 19 \n \n \n 3,545 \n \n \n 1,672 \n \n \n 1,118 \n \n \n \n \n Total non-current liabilities \n \n \n   \n \n \n 784,625 \n \n \n 605,274 \n \n \n 665,818 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Current liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Borrowings \n \n \n 21 \n \n \n 104,138 \n \n \n - \n \n \n 79,908 \n \n \n \n \n Deferred rental income \n \n \n   \n \n \n 21,813 \n \n \n 19,601 \n \n \n 23,713 \n \n \n \n \n Trade and other payables \n \n \n 19 \n \n \n 25,621 \n \n \n 22,643 \n \n \n 25,022 \n \n \n \n \n Total current liabilities \n \n \n   \n \n \n 151,572 \n \n \n 42,244 \n \n \n 128,643 \n \n \n \n \n Total liabilities \n \n \n   \n \n \n 936,197 \n \n \n 647,518 \n \n \n 794,461 \n \n \n \n \n Total net assets \n \n \n   \n \n \n 1,101,383 \n \n \n 1,103,252 \n \n \n 1,117,446 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Share capital \n \n \n 22 \n \n \n 12,462 \n \n \n 12,462 \n \n \n 12,462 \n \n \n \n \n Share premium reserve \n \n \n 22 \n \n \n 500,386 \n \n \n 500,386 \n \n \n 500,386 \n \n \n \n \n Capital reduction reserve \n \n \n   \n \n \n 514,791 \n \n \n 553,113 \n \n \n 591,248 \n \n \n \n \n Share based payment reserve \n \n \n \n \n \n 167 \n \n \n 16 \n \n \n - \n \n \n \n \n Retained earnings \n \n \n   \n \n \n 73,708 \n \n \n 37,387 \n \n \n 12,389 \n \n \n \n \n Cash flow hedge reserve \n \n \n 23 \n \n \n - \n \n \n - \n \n \n 809 \n \n \n \n \n Other reserves \n \n \n \n \n \n (131) \n \n \n (112) \n \n \n 152 \n \n \n \n \n Total equity \n \n \n   \n \n \n 1,101,383 \n \n \n 1,103,252 \n \n \n 1,117,446 \n \n \n \n \n   \n   \n   \n \n \n \n \n   \n   \n   \n \n \n Notes \n \n \n Unaudited \n 31 December 2025 \n £'000 \n \n \n Audited \n 30 June 2025 \n £'000 \n \n \n Unaudited \n   31 December 2024 \n £'000 \n \n \n \n \n Net asset value per share - basic \n \n \n 26 \n \n \n 88.4p \n \n \n 88.5p \n \n \n 89.7p \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Net asset value per share - diluted \n \n \n 26 \n \n \n 88.2p \n \n \n 88.4p \n \n \n 89.7p \n \n \n \n \n EPRA Net tangible asset per share \n \n \n 26 \n \n \n 87.5p \n \n \n 87.1p \n \n \n 87.6p \n \n \n \n \n \nThese unaudited condensed consolidated interim financial statements were approved and authorised for issue by the Board of Directors on 10 March 2026 and were signed on its behalf by: Nick Hewson, Chair. \n \n INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY \n For the six month period ended 31 December 2025 (unaudited) \n \n \n \n \n \n \n \n Share capital \n £'000 \n \n \n Share premium reserve \n £'000 \n \n \n Other reserve \n £'000 \n \n \n Capital reduction reserve \n £'000 \n \n \n Share based payment reserve \n £'000 \n \n \n Retained \n earnings \n £'000 \n \n \n Total \n £'000 \n \n \n \n \n \n \n As at 1 July 2025 \n \n \n 12,462 \n \n \n 500,386 \n \n \n (112) \n \n \n 553,113 \n \n \n 16 \n \n \n 37,387 \n \n \n 1,103,252 \n \n \n \n \n Comprehensive income for \n the period \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit for the period \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 36,321 \n \n \n 36,321 \n \n \n \n \n Other comprehensive income \n \n \n - \n \n \n - \n \n \n   \n (19) \n \n \n   \n - \n \n \n - \n \n \n   \n - \n \n \n (19) \n \n \n \n \n Total comprehensive income for the period \n \n \n - \n \n \n - \n \n \n (19) \n \n \n - \n \n \n - \n \n \n 36,321 \n \n \n 36,302 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Transactions with owners \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity-settled share-based transactions \n \n \n - \n \n \n - \n \n \n   \n - \n \n \n - \n \n \n 151 \n \n \n - \n \n \n 151 \n \n \n \n \n Interim dividends paid \n \n \n - \n \n \n - \n \n \n - \n \n \n (38,322) \n \n \n - \n \n \n - \n \n \n (38,322) \n \n \n \n \n As at 31 December 2025 \n \n \n 12,462 \n \n \n 500,386 \n \n \n (131) \n \n \n 514,791 \n \n \n 167 \n \n \n 73,708 \n \n \n 1,101,383 \n \n \n \n \n   \n For the year ended 30 June 2025 (audited) \n \n \n \n \n \n \n \n Share capital \n £'000 \n \n \n Share premium reserve \n £'000 \n \n \n Cash flow hedge reserve \n £'000 \n \n \n Other reserve \n £'000 \n \n \n Capital reduction reserve \n £'000 \n \n \n Share based payment reserve \n £'000 \n \n \n Retained \n earnings \n £'000 \n \n \n Total \n £'000 \n \n \n \n \n \n \n As at 1 July 2024 \n \n \n 12,462 \n \n \n 500,386 \n \n \n 1,539 \n \n \n 32 \n \n \n 629,196 \n \n \n - \n \n \n (24,141) \n \n \n 1,119,474 \n \n \n \n \n Comprehensive income for the period: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit for the period \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 61,528 \n \n \n 61,528 \n \n \n \n \n Recycled from comprehensive income to profit and loss \n \n \n - \n \n \n - \n \n \n (1,539) \n \n \n - \n \n \n - \n \n \n   \n - \n \n \n - \n \n \n (1,539) \n \n \n \n \n Other comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n (144) \n \n \n - \n \n \n - \n \n \n - \n \n \n (144) \n \n \n \n \n Total comprehensive income for the year \n \n \n - \n \n \n - \n \n \n (1,539) \n \n \n (144) \n \n \n - \n \n \n - \n \n \n 61,528 \n \n \n 59,845 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Transactions with owners \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity-settled share-based transactions \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 16 \n \n \n - \n \n \n 16 \n \n \n \n \n Interim dividends paid \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (76,083) \n \n \n - \n \n \n - \n \n \n (76,083) \n \n \n \n \n As at 30 June 2025 \n \n \n 12,462 \n \n \n 500,386 \n \n \n - \n \n \n (112) \n \n \n 553,113 \n \n \n 16 \n \n \n 37,387 \n \n \n 1,103,252 \n \n \n \n \n   \n   \n INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY \n For the six month period ended 31 December 2024 (unaudited) \n   \n \n \n \n \n \n \n \n Share capital \n £'000 \n \n \n Share premium reserve \n £'000 \n \n \n Cash flow hedge reserve \n £'000 \n \n \n Other reserve \n £'000 \n \n \n Capital reduction reserve \n £'000 \n \n \n Retained \n earnings \n £'000 \n \n \n Total \n £'000 \n \n \n \n \n \n \n As at 1 July 2024 \n \n \n 12,462 \n \n \n 500,386 \n \n \n 1,539 \n \n \n 32 \n \n \n 629,196 \n \n \n (24,141) \n \n \n 1,119,474 \n \n \n \n \n Comprehensive income for \n the period \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit for the period \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 36,530 \n \n \n 36,530 \n \n \n \n \n Recycled comprehensive loss to profit and loss \n \n \n - \n \n \n - \n \n \n (730) \n \n \n - \n \n \n - \n \n \n - \n \n \n (730) \n \n \n \n \n Other comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n   \n 120 \n \n \n   \n - \n \n \n   \n - \n \n \n 120 \n \n \n \n \n Total comprehensive income for the period \n \n \n - \n \n \n - \n \n \n (730) \n \n \n 120 \n \n \n - \n \n \n 36,530 \n \n \n 35,920 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Transactions with owners \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interim dividends paid \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (37,948) \n \n \n - \n \n \n (37,948) \n \n \n \n \n As at 31 December 2024 \n \n \n 12,462 \n \n \n 500,386 \n \n \n 809 \n \n \n 152 \n \n \n 591,248 \n \n \n 12,389 \n \n \n 1,117,446 \n \n \n \n \n   \n   \n INTERIM CONSOLIDATED CASH FLOW STATEMENT \n For the six month period ended 31 December 2025 \n \n \n \n \n \n \n \n Notes \n \n \n Unaudited \n Six months to \n 31 December 2025 \n £'000 \n \n \n Unaudited \n Six months to \n 31 December 2024 \n £'000 \n \n \n Audited \n Year to \n 30 June 2025 \n £'000 \n \n \n \n \n \n \n Operating activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit attributable to ordinary shareholders \n \n \n \n \n \n 36,321 \n \n \n 36,530 \n \n \n 61,528 \n \n \n \n \n Adjustments for: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Tax credit \n \n \n 11 \n \n \n (617) \n \n \n (374) \n \n \n (871) \n \n \n \n \n Changes in fair value of interest rate derivatives measured at fair value through profit and loss \n \n \n 20 \n \n \n 2,837 \n \n \n 8,320 \n \n \n 18,842 \n \n \n \n \n Changes in fair value of Investment properties \n \n \n 14 \n \n \n (5,820) \n \n \n (7,202) \n \n \n (28,001) \n \n \n \n \n Movement in rent smoothing and lease incentive adjustments \n \n \n 5 \n \n \n (891) \n \n \n (1,283) \n \n \n (2,315) \n \n \n \n \n Amortisation of leasing fees \n \n \n \n \n \n 39 \n \n \n 20 \n \n \n 59 \n \n \n \n \n Finance income \n \n \n 10 \n \n \n (4,264) \n \n \n (10,536) \n \n \n (19,688) \n \n \n \n \n Finance expense \n \n \n 10 \n \n \n 19,272 \n \n \n 23,516 \n \n \n 46,673 \n \n \n \n \n Share of income from joint venture \n \n \n 15 \n \n \n (2,940) \n \n \n - \n \n \n (1,540) \n \n \n \n \n Loss on disposal of investment property \n \n \n \n \n \n - \n \n \n - \n \n \n 1,327 \n \n \n \n \n Share based payment movement \n \n \n \n \n \n 151 \n \n \n - \n \n \n 16 \n \n \n \n \n Depreciation \n \n \n \n \n \n 7 \n \n \n - \n \n \n - \n \n \n \n \n Foreign exchange movement \n \n \n \n \n \n 417 \n \n \n (40) \n \n \n (309) \n \n \n \n \n Cash flows from operating activities before changes in working capital \n \n \n   \n \n \n 44,512 \n \n \n 48,951 \n \n \n 75,721 \n \n \n \n \n Increase in trade and other receivables \n \n \n \n \n \n (4,705) \n \n \n (420) \n \n \n (4,234) \n \n \n \n \n Increase/(decrease) in deferred rental income \n \n \n \n \n \n 2,212 \n \n \n (1,046) \n \n \n (5,156) \n \n \n \n \n Decrease in trade and other payables \n \n \n \n \n \n (2,678) \n \n \n (699) \n \n \n (197) \n \n \n \n \n Net cash flows from operating activities \n \n \n   \n \n \n 39,341 \n \n \n 46,786 \n \n \n 66,134 \n \n \n \n \n Investing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Acquisition of equipment \n \n \n \n \n \n (4) \n \n \n - \n \n \n (32) \n \n \n \n \n Acquisition of investment properties \n \n \n 14 \n \n \n (300,013) \n \n \n (49,700) \n \n \n (78,355) \n \n \n \n \n Capitalised acquisition costs \n \n \n \n \n \n (19,753) \n \n \n (1,289) \n \n \n (4,102) \n \n \n \n \n Disposal of investment properties \n \n \n \n \n \n - \n \n \n - \n \n \n 262,665 \n \n \n \n \n Receipts from other financial assets \n \n \n 17 \n \n \n 145 \n \n \n 145 \n \n \n 290 \n \n \n \n \n Bank interest received \n \n \n 10 \n \n \n 664 \n \n \n 48 \n \n \n 113 \n \n \n \n \n Joint venture loan interest received \n \n \n \n \n \n 808 \n \n \n - \n \n \n - \n \n \n \n \n Investment in joint venture \n \n \n \n \n \n (841) \n \n \n - \n \n \n - \n \n \n \n \n Loan to joint venture \n \n \n 15 \n \n \n (102,614) \n \n \n - \n \n \n - \n \n \n \n \n Joint venture loans repaid \n \n \n 15 \n \n \n 94,760 \n \n \n - \n \n \n - \n \n \n \n \n Distributions received from joint venture \n \n \n 15 \n \n \n 4,543 \n \n \n - \n \n \n - \n \n \n \n \n Net cash flows (used in)/from investing activities \n \n \n   \n \n \n (322,305) \n \n \n (50,796) \n \n \n 180,579 \n \n \n \n \n Financing activities \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Borrowings drawn \n \n \n \n \n \n 264,310 \n \n \n 217,843 \n \n \n 371,305 \n \n \n \n \n Bond Issuance \n \n \n \n \n \n 250,000 \n \n \n - \n \n \n - \n \n \n \n \n Borrowings repaid \n \n \n \n \n \n (232,981) \n \n \n (165,187) \n \n \n (463,635) \n \n \n \n \n Loan arrangement fees paid \n \n \n \n \n \n (1,666) \n \n \n (1,418) \n \n \n (2,156) \n \n \n \n \n Bank interest paid \n \n \n \n \n \n (13,230) \n \n \n (20,489) \n \n \n (44,404) \n \n \n \n \n Settlement of interest rate derivatives \n \n \n \n \n \n 4,286 \n \n \n 11,312 \n \n \n 21,176 \n \n \n \n \n Sale of interest rate derivatives \n \n \n \n \n \n 6,039 \n \n \n - \n \n \n 3,249 \n \n \n \n \n Purchase of interest rate derivative \n \n \n \n \n \n (4,389) \n \n \n - \n \n \n (1,169) \n \n \n \n \n Bank commitment fees paid \n \n \n \n \n \n (697) \n \n \n (356) \n \n \n (669) \n \n \n \n \n Dividends paid to equity holders \n \n \n \n \n \n (35,953) \n \n \n (35,755) \n \n \n (73,820) \n \n \n \n \n Net cash flows from/(used in) financing activities \n \n \n \n \n \n 235,719 \n \n \n 5,950 \n \n \n (190,123) \n \n \n \n \n Net movement in cash and cash equivalents for the period \n \n \n   \n \n \n (47,245) \n \n \n 1,940 \n \n \n 56,590 \n \n \n \n \n Cash and cash equivalents at the beginning of the period \n \n \n   \n \n \n 95,281 \n \n \n 38,691 \n \n \n 38,691 \n \n \n \n \n Cash and cash equivalents at the end of \n the period \n \n \n   \n \n \n 48,036 \n \n \n 40,631 \n \n \n 95,281 \n \n \n \n \n   \n \n Notes to the condensed set of financial statements for the six months ended 31 December 2025 \n   \n 1.    Basis of preparation \n General information \n Supermarket Income REIT plc is a company registered in England & Wales with its registered office at Level 19, The Shard, 32 London Bridge Street, London, SE1 9SG . The principal activity of the Company and its subsidiaries (the \"Group\") is to provide its shareholders with an attractive level of income together with the potential for capital growth by investing in a diversified portfolio of supermarket real estate assets in the UK and Europe. \n The financial information set out in this report covers the six months to 31 December 2025, with comparative numbers amounts shown for the year to 30 June 2025 and the six months to 31 December 2024. These condensed interim financial statements are unaudited and the financial information for the year ended 2025 contained herein does not constitute statutory accounts for as defined in section 434 of the Companies Act 2006. The statutory accounts for the year ended 30 June 2025 have been delivered to the Registrar of Companies. The independent auditor's report on those accounts was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under sections 498(2) or 498(3) of the Companies Act 2006. \n At 31 December 2025 the Group comprised of the Company and its wholly-owned subsidiaries. The subsidiaries are incorporated across England & Wales, Guernsey, Jersey and France. \n The condensed consolidated interim financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' and also in accordance with the measurement and recognition principles of UK-adopted international accounting standards; they do not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2025 annual report. \n The accounting policies adopted in this report are consistent with those applied in the Group's audited financial statements for the year ended 30 June 2025. The only additional accounting policy is as follows: \n Assets held for sale \n An asset will be classified as held for sale, in line with IFRS 5 'Non-Current Assets Held for Sale and Discontinued Operations', where the asset is available for immediate sale in its present condition and the sale is highly probable. Fair value movement on initial classification as held for sale and subsequent gains and losses on remeasurement are recognised in profit or loss. \n The accounting policies applied in the preparation of this financial information are expected to be consistently applied in the financial statements for the year to 30 June 2026. \n Accounting convention and currency \n The condensed consolidated interim financial statements (\"the financial statements\") have been prepared on a historical cost basis, except that investment properties, assets held for sale and interest rate derivatives are measured at fair value. \n The financial statements are presented in Pounds Sterling, and all values are rounded to the nearest thousand (£'000), except where otherwise indicated. Pounds Sterling is the functional and presentational currency of the Group. \n Euro denominated results of the French operation have been converted to Sterling at the average exchange rate for the period of €1:£0.87, which is considered not to produce materially different results from using the actual rates at the date of the transactions. Period end balances have been converted to sterling at the 31 December 2025 exchange rate of €1:£0.87. \n The Directors are of the opinion that the Group is currently engaged in a single segment business, being investment in supermarket property assets. \n   \n 1.    Basis of preparation (continued) \n Going concern \n In light of the current macroeconomic backdrop, the Directors have placed a particular focus on the appropriateness of adopting the going concern basis in preparing the Group's interim results for the six months ended 31 December 2025. In assessing the going concern basis of accounting the Directors have had regard to the guidance issued by the Financial Reporting Council. \n Liquidity \n At 31 December 2025, the Group cash of £48.0 million and undrawn committed facilities totalling £86.1 million with no capital commitments or contingent liabilities. \n At the date of signing, the Group has undrawn committed facilities of £172.9 million (including share of joint ventures) available following repayment of £75 million of the unsecured RCF from the sale of assets into the Joint Venture. \n The Directors are of the belief that the Group continues to be well funded during the going concern period with no concerns over its liquidity. \n Refinancing events \n At the date of signing the financial statements, the HSBC and SMBC facilities fall due for repayment during the going concern period. The HSBC facility is currently undrawn. It is intended that the £104.5 million will be paid down in full utilising the Group's available cash facilities. The Group's lenders have been supportive during the period and have expressed commitment to the long-term relationship they wish to build with the Company. \n Covenants \n The Group's debt facilities include covenants in respect of LTV, interest cover, unencumbered assets and priority debt. \n The Directors have evaluated a number of scenarios as part of the Group's going concern assessment and considered the impact of these scenarios on the Group's continued compliance with debt covenants. The key assumptions that have been sensitised within these scenarios are falls in rental income and increases in administrative cost inflation. \n As at the date of issuance of this consolidated financial information 100% of contractual rent for the period has been collected. The Group benefits from a secure income stream from its property assets that are let to tenants with excellent covenant strength under long leases that are subject to upward only rent reviews. \n The list of scenarios is below and are all on top of the base case model which includes prudent assumptions on valuations and cost inflation. \n \n \n \n \n Scenario \n \n \n Rental Income \n \n \n Costs \n \n \n \n \n Base case scenario (Scenario 1) \n \n \n 100% contractual rent received when due and rent reviews based on forward looking inflation curve, capped at the contractual rate of the individual leases. \n \n \n In line with Company FY26 budget. \n \n \n \n \n Scenario 2 \n \n \n Rental income to fall by 20%. \n \n \n Costs expected to remain the same as the base case. \n \n \n \n \n Scenario 3 \n \n \n Rental income expected to remain the same as the base case. \n \n \n 10% increases on base case costs to all administrative expenses. \n \n \n \n \n   \n 1.    Basis of preparation (continued) \n The Group continues to maintain covenant compliance for its LTV and ICR thresholds throughout the going concern assessment period under each of the scenarios modelled. The lowest amount of ICR headroom experienced in the worst-case stress scenarios was 18%. Property values would have to fall by more than 19% before LTV covenants are breached against 31 December 2025 Group valuations. \n Having reviewed and considered three modelled scenarios, the Directors consider that the Group has adequate resources in place for at least 12 months from the date these interim results have been authorised for issue and have therefore adopted the going concern basis of accounting in preparing the interim financial statements. \n 2.    Significant accounting judgements, estimates and assumptions \n There have been no new or material revisions to the nature and amount of judgements and estimates reported in the Annual Report 2025, other than changes to certain assumptions applied in the valuation of properties. Details of the key assumptions applied at 31 December 2025 are set out in Note 14. For the acquisition during the period the concentration test (as defined in the Annual Report 2025) was applied and met resulting it being accounted for as an asset purchase. \n 3.    Summary of material accounting policies \n The principal accounting policies adopted in this report are consistent with those applied in the Group's audited financial statements for the year ended 30 June 2025 and are expected to be consistently applied during the year ending 30 June 2026. \n 3.1 New standards issued and effective \n There were a number of new standards and amendments to existing standards which are required for the Group's accounting period beginning on 1 July 2025. \n The following amendments are effective for the period beginning 1 July 2025: \n -        Lack of exchangeability (Amendments to IAS 21); \n There was no material effect from the adoption of the above-mentioned amendments to IFRS effective in the period. They have no significant impact to the Group as they are either not relevant to the Group's activities or require accounting which is already consistent with the Group's current accounting policies. \n 3.2 New standards issued but not yet effective \n The following are new standards, interpretations and amendments, which are not yet effective, and have not been early adopted in these financial statements, that will or may have an effect on the Group's future financial statements: \n -     Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) \n -       IFRS 18 Presentation and Disclosure in Financial Statements \n \n The Group expects to review and determine the impact of the new standards on the Group's reporting and financial statements over the coming financial year. \n A number of new standards and amendments to standards and interpretations have been issued but are not yet effective for the current accounting period. Even though IFRS 18 will not have any effect on the recognition and measurement of items in the consolidated financial statements, it is expected to have a significant effect on the presentation and disclosure of certain items. These changes include categorisation and sub-totals in the statement of profit or loss, aggregation/disaggregation and labelling of information, and disclosure of management-defined performance measures. \n 4.    Operating Segments \n Operating segments are identified on the basis of internal financial reports about components of the Group that are regularly reviewed by the chief operating decision maker (which in the Group's case is the Board) in order to allocate resources to the segments and to assess their performance. \n The internal financial reports contain financial information at a Group level as a whole and there are no reconciling items between the results contained in these reports and the amounts reported in the consolidated financial statements. \n The Group's property portfolio comprises investment property. The Board considers that all the properties have similar economic characteristics. Therefore, in the view of the Board, there is one reportable segment. \n The geographical split of revenue and material applicable non-current assets was: \n   \n \n \n \n \n Revenue \n \n \n Unaudited \n Six months to \n 31 December 2025 \n £'000 \n \n \n Unaudited \n Six months to \n 31 December 2024 \n £'000 \n \n \n Audited \n Year to \n 30 June 2025 \n £'000 \n \n \n \n \n \n \n UK \n \n \n 44,504 \n \n \n 56,034 \n \n \n 108,593 \n \n \n \n \n France \n \n \n 4,393 \n \n \n 2,137 \n \n \n 5,416 \n \n \n \n \n   \n \n \n 48,897 \n \n \n 58,171 \n \n \n 114,009 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Investment Properties \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n UK \n \n \n 1,312,960 \n \n \n 1,700,700 \n \n \n 1,320,430 \n \n \n \n \n France \n \n \n 199,009 \n \n \n 62,340 \n \n \n 95,389 \n \n \n \n \n   \n \n \n 1,511,969 \n \n \n 1,763,040 \n \n \n 1,415,819 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Assets held for sale \n \n \n \n \n \n \n \n \n   \n \n \n \n \n UK \n \n \n 230,929 \n \n \n 62,950 \n \n \n - \n \n \n \n \n France \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n \n \n \n 230,929 \n \n \n 62,950 \n \n \n - \n \n \n \n \n   \n 5.    Gross rental income \n \n \n \n \n \n \n \n Unaudited \n Six months to \n 31 December 2025 \n £'000 \n \n \n Unaudited \n Six months to \n 31 December 2024 \n £'000 \n \n \n Audited \n Year to \n 30 June 2025 \n £'000 \n \n \n \n \n \n \n Rental income - freehold property \n \n \n 34,124 \n \n \n 32,348 \n \n \n 64,172 \n \n \n \n \n Rental income - long leasehold property \n \n \n 14,773 \n \n \n 25,823 \n \n \n 49,837 \n \n \n \n \n Gross rental income \n \n \n 48,897 \n \n \n 58,171 \n \n \n 114,009 \n \n \n \n \n Property insurance recoverable \n \n \n 545 \n \n \n 514 \n \n \n 980 \n \n \n \n \n Property tax recoverable \n \n \n 358 \n \n \n 285 \n \n \n 677 \n \n \n \n \n Service charge recoverable \n \n \n 3,704 \n \n \n 3,467 \n \n \n 7,387 \n \n \n \n \n Total property insurance and service \n charge income \n \n \n 4,607 \n \n \n 4,266 \n \n \n 9,044 \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Total property income \n \n \n 53,504 \n \n \n 62,437 \n \n \n 123,053 \n \n \n \n \n   \n Included within rental income is a £751,000 (six months to 31 December 2024: £960,000; year to 30 June 2025: £1,909,000) rent smoothing adjustment that arises as a result of IFRS 16 'Leases' requiring that rental income in respect of leases with rents increasing by a fixed percentage be accounted for on straight-line basis over the lease term. During the period this resulted in an increase in rental income and an offsetting entry being recognised in profit or loss as an adjustment to the investment property revaluation. \n 5.    Gross rental income (continued) \n Also included in rental income is a £140,000 (six months to 31 December 2024: £323,000; year to 30 June 2025: £406,000) from lease incentives. Tenant lease incentives are recognised on a straight-line basis over the lease term as an adjustment to rental income. During the period this resulted in an increase in rental income and an offsetting entry being recognised in profit or loss as an adjustment to the investment property revaluation. \n On an annualised basis, rental income comprises £42,245,000 (June 2025: £41,887,000) relating to the Group's largest tenant and £30,474,000 (June 2025: £31,032,000) relating to the Group's second largest tenant. There was one further tenant representing more than 10% of annualised gross rental income during period being £14,079,000 (June 2025: No other tenant). \n 6.    Service charge expense \n \n \n \n \n \n \n \n Unaudited \n Six months to \n 31 December 2025 \n £'000 \n \n \n Unaudited \n Six months to \n 31 December 2024 \n £'000 \n \n \n Audited \n Year to \n 30 June 2025 \n £'000 \n \n \n \n \n \n \n Property insurance expenses \n \n \n 563 \n \n \n 566 \n \n \n 1,139 \n \n \n \n \n Property tax expense \n \n \n 455 \n \n \n 285 \n \n \n 680 \n \n \n \n \n Service charge expenses \n \n \n 3,901 \n \n \n 3,757 \n \n \n 8,000 \n \n \n \n \n Total property insurance and service \n charge expenses \n \n \n 4,919 \n \n \n 4,608 \n \n \n 9,819 \n \n \n \n \n   \n 7.    Administrative and other expenses \n \n \n \n \n \n \n \n Unaudited \n Six months to \n 31 December 2025 \n £'000 \n \n \n Unaudited \n Six months to \n 31 December 2024 \n £'000 \n \n \n Audited \n Year to \n 30 June 2025 \n £'000 \n \n \n \n \n \n \n Investment Adviser fees \n \n \n - \n \n \n 4,636 \n \n \n 6,793 \n \n \n \n \n Non-executive directors' remuneration \n \n \n 313 \n \n \n 235 \n \n \n 499 \n \n \n \n \n Executive directors and staff costs \n \n \n 1,513 \n \n \n - \n \n \n 555 \n \n \n \n \n Corporate administration fees \n \n \n 379 \n \n \n 591 \n \n \n 1,212 \n \n \n \n \n Legal and professional fees \n \n \n 1,202 \n \n \n 900 \n \n \n 2,880 \n \n \n \n \n Other administrative expenses \n \n \n 1,603 \n \n \n 1,213 \n \n \n 2,530 \n \n \n \n \n Total administrative and other expenses \n \n \n 5,010 \n \n \n 7,575 \n \n \n 14,469 \n \n \n \n \n In March 2025, the Company internalised its previously outsourced management function, there is therefore no investment advisor fee in the current period. \n 8.    Directors' remuneration \n The Board of Directors are the key management personnel of the Company. \n The Non-Executive Directors are appointed under letters of appointment for service while executive Directors are under an employment contract. Directors' remuneration was as follows: \n \n \n \n \n \n \n \n Unaudited \n Six months to \n 31 December 2025 \n £'000 \n \n \n Unaudited \n Six months to \n 31 December 2024 \n £'000 \n \n \n Audited \n Year to \n 30 June 2025 \n £'000 \n \n \n \n \n \n \n Non-Executive Director's fees \n \n \n 274 \n \n \n 211 \n \n \n 445 \n \n \n \n \n National insurance \n \n \n 39 \n \n \n 24 \n \n \n 54 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Executive Director's Costs: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Wages and Salaries \n \n \n 325 \n \n \n - \n \n \n 168 \n \n \n \n \n National Insurance \n \n \n 53 \n \n \n - \n \n \n 18 \n \n \n \n \n Pension Costs \n \n \n 26 \n \n \n - \n \n \n 14 \n \n \n \n \n Total Directors' remuneration \n \n \n 717 \n \n \n 235 \n \n \n 699 \n \n \n \n \n   \n 9.    Staff costs \n \n \n \n \n \n \n \n Unaudited \n Six months to \n 31 December 2025 \n £'000 \n \n \n Unaudited \n Six months to \n 31 December 2024 \n £'000 \n \n \n Audited \n Year to \n 30 June 2025 \n £'000 \n \n \n \n \n \n \n Wages and Salaries \n \n \n 1,095 \n \n \n - \n \n \n 444 \n \n \n \n \n Social security costs \n \n \n 154 \n \n \n - \n \n \n 54 \n \n \n \n \n Pension Costs \n \n \n 113 \n \n \n - \n \n \n 41 \n \n \n \n \n Equity-settled share-based payments \n \n \n 151 \n \n \n - \n \n \n 16 \n \n \n \n \n Total staff costs \n \n \n 1,513 \n \n \n - \n \n \n 555 \n \n \n \n \n   \n In March 2025, the Group internalised its previously outsourced management function, there is therefore no staff costs in the six months ended 31 December 2024. \n The staff costs above, which includes the salaries of the Executive Directors, are shown within administrative and other expenses in the consolidated statement of comprehensive income. \n The average number of employees including Executive Directors for the period was 18 (30 June 2025: since 25 March 2025, 15). \n Equity-settled share option plan \n The Group established a long-term incentive plan following consultation with a number of its largest shareholders and as outlined in the Directors' Remuneration Policy in the circular published on 4 March 2025 in relation to the Internalisation of the Company's management function. Employees were granted their awards on 17 June 2025 and the vesting period is to the announcement of the 2028 results expected to be mid-September 2028. \n Each employee share option converts into one ordinary share of the parent company on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry. \n The number of options granted is calculated in accordance with the performance-based formula approved by shareholders at the previous annual general meeting and is subject to approval by the Remuneration Committee. The formula rewards employees to the extent of the Group's and the individual's achievement judged against both qualitative and quantitative criteria from the following conditions: \n ·      Relative total shareholder return; \n ·      Improvement in earnings per share; \n ·      Improvement in total accounting return; \n ·      Personal performance \n   \n Details of the share options outstanding during the period are as follows: \n \n \n \n \n   \n \n \n 31 December 2025 \n \n \n 30 June 2025 \n \n \n \n \n   \n \n \n Number of share options \n \n \n Weighted average exercise price \n \n \n Number of share options \n \n \n Weighted average exercise price \n \n \n \n \n \n \n Outstanding at the beginning of the period \n \n \n 2,331,582 \n \n \n £0.01 \n \n \n - \n \n \n - \n \n \n \n \n Granted during the period \n \n \n - \n \n \n - \n \n \n 2,331,582 \n \n \n £0.01 \n \n \n \n \n Outstanding at the period end \n \n \n 2,331,582 \n \n \n £0.01 \n \n \n 2,331,582 \n \n \n £0.01 \n \n \n \n \n Exercisable at the period end \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n   \n 9.    Staff costs (continued) \n An independent valuation of the fair value of these shares was carried out at the grant date. The valuation was prepared in accordance with International Financial Reporting Standard 2 (\"IFRS 2\"): Share-based payments. \n For the market condition of total shareholder return a Stochastic model was used and the Black-Scholes model used for the non-market conditions. The assumptions used are as follows: \n \n \n \n \n Date of grant \n \n \n 17 June 2025 \n \n \n \n \n \n \n Share price at grant \n \n \n £0.83 \n \n \n \n \n Exercise price \n \n \n £0.01 \n \n \n \n \n Expected volatility \n \n \n 25.66% \n \n \n \n \n Expected term \n \n \n 3.26 years \n \n \n \n \n Risk free rate \n \n \n 3.94% \n \n \n \n \n Expected dividend yield \n \n \n 0% \n \n \n \n \n Fair value (market conditions) \n \n \n £0.4543 \n \n \n \n \n Fair value (non-market conditions) \n \n \n £0.8299 \n \n \n \n \n Awards to Executive Directors have a holding period of two years from vesting and a Chaffe model was used to estimate a discount for the lack of marketability (\"DLOM\"). The assumptions used are as follows: \n \n \n \n \n Date of grant \n \n \n 17 June 2025 \n \n \n \n \n \n \n Share price at grant \n \n \n £0.83 \n \n \n \n \n Exercise price \n \n \n £0.83 \n \n \n \n \n Expec...

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