- Write-downs have reduced this year
- Reit bought 17 Carrefour stores in a sale and leaseback transaction
Much of the statutory loss registered by Supermarket Income Reit (SUPR) was driven by portfolio write-downs and changes in the fair value on interest rate derivatives, which brought a loss of £31.3mn. In terms of write-downs, the worst seems to be behind the Reit – it took a £65.8mn write-down this year, compared with £256mn in FY2023. Mike Prew, an analyst at Jefferies, highlighted the challenges to the portfolio: “In the trend to smaller format stores, SUPR's portfolio seems too big (80k–100k sq ft) in a trend from mega to convenience, and too heavily rented (£28–£35 psf).”