£100m Equity raise - model update

Research evidence excerpt

£100m Equity raise - model update

Supermarket Income REIT plc (SUPR LN)

Equity Research

July 16, 2026

The Long View: SUPR

Investment Thesis Risk/Reward - 12 Month View

1. SUPR has been on the acquisition front buying assets which are earnings

enhancing. Upside1 :: Downside1.43

2. Fundamentals of the business look positive with an attractive Dividend yield 110

and Net asset value stabilising. 105 (+21%)

3. Cash flow growth to improve with improving like-for-like rental growth. 100

94 (+9%)

60 60 (-31%)

2025 2026 +12 mo.

Base Case, Upside Scenario, Downside Scenario,

94p, +9% 105p, +21% 60p, -31%

• Asset acquisitions and rental growth remains • Valuations outperform, with yield • Valuations underperform our expectations,

steady with regard to income growth going compression greater than expectations. with fewer transactions evidenced in the

forward. • Inflation outperforms our expectation, market and reduced expectations around UK

• Cash flow growth to improve with accretive meaning cash dividend cover is higher than grocery spending.

acquisitions which will propel earnings factored in, with dividend growth more rapid. • Inflation underperforms our estimates,

growth. translating into lower dividend growth.

• PT based on DCF valuation.

Sustainability Matters Catalysts

Top Material Issue(s): GHG Emissions - An increasing number of REITs are implementing energy- • Base/Upside/Downside scenarios all

efficiency measures, sourcing clean energy, and implementing carbon-reduction goals. Despite impacted by outcome of JV options and are

additional costs, landlords can improve pricing power by increasing the penetration of these measures. likely to be priced in closer to the event, so