tesco supermarket

Grocery sector investor Supermarket Income REIT (LON:SUPR) announced that it invested £210.5 million in four supermarket assets in the first quarter, with dividend payments meeting its annual payout guidance.

The property investment company, aimed at offering investors a slice of the grocery market through exposure to supermarket real estate assets, declared a dividend for the three months through March of 1.375p per share and said it still expected to pay annualised dividends of 5.5p per share.

The group’s chief investment advisor, Ben Green, said, “Since our IPO in July 2017, Supermarket Income REIT has rapidly built a portfolio of high quality UK supermarket property generating attractive inflation-linked income for shareholders.

“During the quarter, we concluded two rent reviews with increases of 3.9 percent, demonstrating the value of the contracted RPI linkage in our leases.”

The company’s investment properties were independently valued on 31 March at £210.5 million, representing an increase of 4.5% above their aggregate acquisition price. The group has invested so far in three Tesco stores, in Thetford, Cumbernauld and Bristol, and a Sainsbury’s in Ashford, Kent.

Shares are currently trading down 0.25 percent at 100.75 (0832GMT).