Audited results for the year ended 30 June 2025

 SUPERMARKET INCOME REIT PLC

(the "Company", "SUPR" or together with its subsidiaries the "Group")

AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2025

A TRANSFORMATIONAL YEAR POSITIONING THE COMPANY FOR INCREASED SCALE AND EARNINGS GROWTH. DEMONSTRATING ALIGNMENT WITH SHAREHOLDERS, ASSET VALUATIONS AND AFFORDABILITY OF RENTS.

The Board of Directors of Supermarket Income REIT plc (LSE: SUPR, JSE: SRI), the real estate investment trust, reports its audited consolidated results for the Group for the year ended 30 June 2025 (the "Year").

FINANCIAL HIGHLIGHTS

Significant strategic milestones achieved

· Positioned for materially improved earnings and dividend cover

o  Internalisation to deliver £4 million of expected cost savings and clear alignment between the Company, management team and shareholders

o  Committed to being one of the lowest cost companies in the sector targeting below 9% EPRA cost ratio

o  Debut sterling bond issuance fixing £250 million of debt costs for 6 years at 5.125% coupon

· Active capital recycling proving asset valuations and releasing capital for reinvestment

o  Strategic £403 million Joint Venture (the "JV") with funds managed by Blue Owl Capital ("Blue Owl") at 3% premium to 31 December 2024 book value

§ SUPR holds a 50% interest in the JV and realised c.£200 million of net proceeds to deploy into an attractive pipeline of investment opportunities

o  Sale of Tesco, Newmarket for £63.5 million at 7.4% premium to 30 June 2024 book valuation

o  Active capital recycling has resulted in a marginal decline in EPRA earnings per share of 2%, which reflects temporary cash drag as the Company continues to redeploy the net proceeds from the JV

· Renewed leases on the three shortest leased supermarkets demonstrating affordability of rents

o  Extended leases to 15 years with RPI linked annual reviews

o  New starting rents in line with acquisition underwrite at 4% rent to turnover, 35% ahead of MSCI supermarkets average rent per sq.ft. and 13% above valuer's ERVs

· Secondary listing on the JSE broadening SUPR's exposure to international investors

Positioning for future growth

· FY26 target dividend increased to a minimum of 6.18 pence per share

· Reduction in EPRA cost ratio of 1.7% during the year, with additional reductions expected in FY26, reflecting a full year of benefits from Internalisation cost reductions

· LTV of 31% as at 30 June 2025 (30 June 2024: 37%) providing capacity for growth through increased leverage to fund earnings accretive acquisitions (current LTV of 34%)

· 100% occupancy and 100% rent collection4 since IPO

o  Income backed by the leading and largest operators in the non-discretionary grocery sector

· c. £450 million of liquidity in the form of cash and undrawn committed facilities

· Fitch BBB+ investment grade rating reaffirmed providing access to attractively priced long-dated debt

· Post balance sheet debut £250 million oversubscribed sterling bond issuance with a six-year term and a fixed coupon of 5.125%

Earnings accretive acquisitions

· Acquired a Sainsbury's store in Huddersfield for £49.7 million at a 7.6%5 net initial yield ("NIY")

· Acquired nine Carrefour assets in France through a sale and leaseback for a total purchase price of €36.7 million6, at a portfolio NIY of 6.8%

· Post balance sheet acquisitions include a Tesco store in Ashford for £54.1 million at a 7.0%7 NIY and a Waitrose store in Anglesey for £4.8 million at a 6.1%8 NIY.

Strong grocery sector growth

· The non-discretionary grocery market continues to demonstrate growth and resilience

· UK grocery market has shown consistent growth, with sales up 5.4% year on year in July 20259 and forecast to grow to £259 billion in 202510

o  Tesco and Sainsbury's increased sales and market share in the year with a combined 43% market share11

o  Total online market share at 12% and growing11

· French grocery market sales forecast to reach €329 billion in 2029, representing 3% annual growth12

o  Carrefour has a 21.5% market share in France, an increase of 2.2 percentage points since June 2024.11

o  Online is one of the fastest growing channels experiencing 88% growth between 2018 and 202512, accounting for approximately 10% of the market

Material cost savings and increased alignment with shareholders

· Internalisation of the management function expected to deliver at least £4 million of annual cost savings

· Reduced EPRA cost ratio to 13%, targeting further cost efficiencies in FY26 with the aim of achieving below 9%, among the lowest in the sector

· Broader investor appeal with the transfer of listing from the closed-ended investment fund category to the equity shares (commercial companies) category of the Official List

Supermarket property valuations increasing

· The Company's portfolio valuation increased by 1.9%13 on a like-for-like basis

· NIY of 5.9% (30 June 2024: 5.9%)

· The Company acquired £81.2 million14 of assets at an average yield of 7.3%, representing an attractive 2.3% spread to the incremental cost of debt

· The Company disposed of £466.8 million15 of assets, highlighting strong demand for omnichannel stores

o  Tesco, Newmarket: sold to Tesco plc for £63.5 million, 7.4% above book value16

o  Eight stores in the 50:50 JV: £403.3 million, 3% above book value17

· Constrained transaction volumes with potential sellers choosing to hold on to assets, placing upwards pressure on valuations

Further progress on key sustainability initiatives  

· EPRA Sustainability Best Practices Recommendations ("sBPR") Silver and Most Improved Awards

· First Climate Transition Plan published

· Improved ESG data collection processes with electricity and natural gas data collected from all supermarket tenants

· Strong tenant net zero commitments continue to drive significant tenant capital expenditure on stores 

· EV charging operational at 38% of sites and solar arrays operational across 16% of stores in the Portfolio

· Awarded sixth consecutive EPRA Gold award for governance 

Robert Abraham, CEO of Supermarket Income REIT plc, commented:

"This has been a transformational year for SUPR which has positioned the Company to return to growth. The team has delivered shareholder value through a number of key strategic milestones, most notably the Internalisation which will deliver significant cost savings and provides greater alignment with shareholders. We have proactively sought to deliver further shareholder value through establishing a £403 million JV, issuing our debut £250 million sterling bond, demonstrating the affordability of rents and validating asset valuations, whilst broadening our investor base through our secondary listing on the JSE.

The investment case for supermarket real estate is as compelling as ever and our relationship led model combined with sector specialism allow us to unlock attractive opportunities for shareholders. Our portfolio of 8218 high-quality foodstores let to operators of significant scale, under triple net leases with contractual inflation linked uplifts, enables us to deliver an efficient platform with a falling cost ratio.

We remain focused on delivering shareholder value as we look to scale the platform further. Our team of grocery sector specialists continues to demonstrate its ability to originate and execute on an attractive acquisition pipeline of earnings enhancing opportunities. Through this pipeline we expect to deliver a growing and fully covered dividend."

PRESENTATION FOR ANALYSTS

The Company will be holding an in-person presentation for analysts at 08.30am today at FTI Consulting's offices, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD. To register to attend in-person, please contact FTI Consulting: [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 - Full Year Results Presentation 2025 | SparkLive | LSEG

The results presentation is available in the Investor Centre section of the Group's website.

NOTES TO EDITORS:

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 £1.8 billion as at 31 December 2024.

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.

The Company's shares are traded on the LSE's Main Market and on the Main Board of the JSE Limited in South Africa. 

Further information is available on the Company's website www.supermarketincomereit.com

LEI: 2138007FOINJKAM7L537

Stifel Nicolaus Europe Limited, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for Supermarket Income REIT plc and no one else in connection with this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Stifel Nicolaus Europe Limited nor for providing advice in connection with the matters referred to in this announcement.

Goldman Sachs International, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom, is acting exclusively for Supermarket Income REIT plc and no one else in connection with this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Goldman Sachs International nor for providing advice in connection with the matters referred to in this announcement.

CHAIR'S STATEMENT

Dear Shareholder,

I am pleased to present the Company's first results as an operating REIT, following the internalisation of its management function ("Internalisation") in March 2025. The Internalisation, which I discuss in more detail below, was a key milestone among several achieved in a transformational year for the Company. These accomplishments have positioned the Company to capitalise on the compelling investment opportunities that we are seeing at this stage of the real estate cycle.

In November 2024, we set out a series of key strategic initiatives, aimed at reducing costs, delivering sustainable and growing earnings, and ultimately narrowing the share price discount to NTA. Having successfully delivered on these initiatives, including recycling capital, lease renewals on three of our supermarkets and completing the Internalisation of the business, it is encouraging to see a positive market response. In the calendar year-to-date, SUPR's share price has risen 16%, versus the FTSE EPRA NAREIT UK Index which is down 2% (based on the closing share price as at 15 September 2025) and the discount to NTA has narrowed markedly. However, we recognise that there is still more work to be done.

These strategic initiatives have evidenced the affordability of rents across our high-performing omnichannel supermarket portfolio, supported our asset valuations, and demonstrated strong alignment with shareholder interests, as described below.

Demonstrating affordable rental levels. In February, lease renewals for the Company's three shortest-leased stores provided clear evidence of the above-average affordable rental levels for our high-quality stores. New 15-year leases were agreed with Tesco, featuring inflation-linked annual uplifts. The day one starting rents on these renewed leases were struck at an average of 35% above the MSCI supermarket rental index and 13% ahead of our own valuer's Estimated Rental Values ("ERVs"), highlighting the above average rents that operators are prepared to pay for continued access to stores in our high-quality portfolio of grocery assets.

Demonstrating asset valuations. The Company completed two key disposals this year, crystalising the market value of the Company's assets.

Tesco, Newmarket: We sold this store to Tesco for £63.5 million, at a net initial yield of 5.2%19 and 7.4% above the June 2024 book value, highlighting the strong demand for low-yielding omnichannel stores. Tesco's purchase of the store also underlines the asset's strategic importance to the operator.

Strategic joint venture ("JV"): In April, SUPR formed a strategic JV with funds managed by Blue Owl Capital, a global asset manager with $284+ billion of assets under management. The JV was seeded with eight of SUPR's high-yielding supermarkets, which were transferred into the JV at 3% above the December 2024 book value. SUPR retained a 50% stake in the JV, generating c.£200 million in net proceeds and will receive an ongoing management fee enhancing the Company's earnings. The JV further supported SUPR's asset valuations, endorsed our investment thesis, and unlocked additional capital for further acquisitions while preserving future growth optionality.

Demonstrating alignment with investors. In March this year, the Company internalised its management function, delivering significant benefits for shareholders. Firstly, the Internalisation is on-track to deliver the expected c.£4 million of annual cost savings. The benefits of these cost reductions are already evident in our EPRA cost ratio which has reduced from 14.7% to 13.0% reflecting savings made during the year and we are on-track to see the full benefits in FY26. With the annual savings realised from the Internalisation, we are targeting one of the lowest EPRA cost ratios in the sector-below 9%-to deliver a highly efficient platform for our shareholders. As we continue to scale the business, we are confident in our ability to drive these costs even lower.

The Internalisation also provides greater alignment between management, the Board and shareholders and we are delighted to welcome Rob Abraham, CEO, and Mike Perkins, CFO, to the Board as Executive Directors. The Board would like to extend its thanks to the Atrato team for their contribution to the growth of the Company since its IPO.

Listing Changes. The Company completed a secondary listing on the Johannesburg Stock Exchange ("JSE") in December enhancing its profile with a broader investor base and I am pleased to welcome our new South African shareholders to the register. Following completion of the Internalisation, the Company also secured shareholder support to change its UK listing to the equity shares (commercial companies) category of the Official List, which has, among other things, enhanced efficiency, operational flexibility and the attractiveness of the Company to investors in the UK and overseas.

Governance. The Nomination Committee continues its succession planning. Sapna Shah, SID and Chair of the Nomination Committee, has overseen the appointment of Roger Blundell to the Board to succeed Jon Austen as Audit & Risk Committee Chair. As part of the Board's succession planning, Jon will step down from the Board following the 2025 AGM as he approaches the end of his nine-year term. On behalf of the Board, I would like to offer my sincerest thanks to Jon for the huge contribution that he has made to the Company, having served on its Board since the IPO in 2017.

Sustainability. We continue to put sustainability at the heart of the business and this year I am pleased to report that in addition to the publication of our inaugural Climate Transition Plan, we have published our third annual sustainability report to coincide with the release of our TCFD compliant full year results.

Post period end actions. Following the period end, the Company has reinforced its commitment to delivering long-term shareholder value, with the earnings enhancing acquisition of a Tesco supermarket in Ashford, a top performing foodstore, marking the first reinvestment of proceeds from the JV. The Company also issued its first sterling bond which secures long-term financing at an attractive fixed rate. The investment grade bond enhances the Company's financial flexibility and the potential earnings accretion of the acquisition pipeline as the business continues to scale.

Outlook

With a fully aligned internal management structure now in place, supported by a high-calibre team of sector specialists, we believe we are well positioned to deliver significant long-term value for shareholders. The Company's supermarket tenants continue to perform strongly with the non-discretionary and highly resilient grocery market benefitting from an extended period of food price inflation and sales growth across the market.

The Board recommends a minimum target dividend of 6.18p for the year ending June 2026. While our near-term focus remains on delivering a growing and fully covered dividend, ultimately our aim is to position the Company to deliver dividend growth ahead of that seen in recent years, during which we have been actively managing the impact of higher financing costs since 2022.

The Company has delivered a huge amount of progress this year and I am pleased with the positive response from our shareholders. The Company has demonstrated its agility and innovation, evidenced through strategic transactions such as the JV which attracted a strategic partner, warehoused future pipeline, released capital and leveraged our team's sector expertise to generate additional earnings through the ongoing management fee. We have a current and compelling pipeline of opportunities, access to capital and the right team to deliver them. I look forward to updating the market as we maintain the pace of activity and creativity displayed this year, and as we continue to grow the business and deliver long-term value for shareholders.

Nick Hewson

Chair

16 September 2025

KEY PERFORMANCE INDICATORS

We set out below the key performance indicators for the Company.

\* The Company previously included an additional earnings measure called "Adjusted earnings" and "Adjusted EPS". The metric adjusted EPRA earnings by deducting one-off items such as debt restructuring costs.

Following the updated September 2024 EPRA best practice recommendations guidelines, the specific adjustments to EPRA earnings are now included within the EPRA earnings calculation. As such the comparative period calculations in the tables have been adjusted to reflect the new guidelines retrospectively.

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.

Reconciliations between EPRA measures and the IFRS financial statements can be found in Notes 12 and 30 to the financial statements.

EPRA PERFORMANCE INDICATORS

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.

For a full reconciliation of all EPRA performance indicators, please see the Notes to EPRA measures within the supplementary section of the financial statements.

CHIEF EXECUTIVE'S REVIEW

Business Review

Chief Executive Robert Abraham.

A Transformational Year for SUPR

1) This year marked a pivotal moment for the business, with significant milestones achieved and portfolio initiatives delivered in quick succession. These accomplishments are the culmination of an extraordinary team effort, driving real value for our shareholders.

2) Internalisation of the Company's management function delivering material cost savings and enhanced alignment with investors.

3) Demonstrating the affordability of rents in our high-quality portfolio through lease renewals as well as crystalising the value of our assets through capital recycling.

4) The formation of the JV with a highly credible global real estate investor in Blue Owl unlocked capital while providing further supporting evidence for our investment thesis on higher yielding UK supermarkets. The JV offers an attractive management fee and the ability to retain a stake in these high-quality assets.

5) Public bond issuance had long been on our strategic agenda, and post year-end, we acted swiftly to seize a window of opportunity for a significantly oversubscribed £250 million debut bond issue - a testament to the team's agility and readiness.

6) Investor interest continues to broaden, notably with the successful JSE listing completed in December 2024. We're pleased to welcome our South African investors, who now represent approximately 3% of our register. We look forward to growing this in the coming years and further diversifying the share register.

Opportunity for growth

1) With a strengthened balance sheet and access to capital at a competitive cost across equity, debt, and joint ventures, we are well positioned to execute on a compelling pipeline of assets, as we continue to scale the business.

2) This pipeline provides attractive avenues for growth across the grocery real estate spectrum while maintaining a focus on leading operators with significant scale and market share.

3) New supply is entering the market through sale and leaseback transactions for the first time in many years. These supermarket sites are often top-performing grocery locations which have been operating for 30+ years.

4) The grocery real estate investment case remains highly compelling: a sector underpinned by non-discretionary spend, national food infrastructure and mission critical real estate for tenants.

5) Drivers for rental growth are evident: zero vacancy, mission critical properties, strong grocery sales growth (particularly for omnichannel stores), prohibitively high development costs and a shortage of prime locations (see Sainsbury's acquisition of Homebase stores to convert into supermarkets).

6) Our internalised structure provides clear alignment with shareholders and the desire to scale does not come at the cost of quality and delivering sustainable returns.

The year in review

A year of significant achievements for the Company

FY25 has been defined by the successful delivery of the key strategic initiatives which were announced in November 2024. Against a backdrop of continued economic uncertainty, we have maintained our focus on proactively seeking to drive value for our shareholders. From internalising our management structure to launching a landmark JV with Blue Owl, SUPR has taken the decisive and necessary steps to improve alignment with shareholders, reduce costs, and enhance long-term earnings. We remain focused on capital recycling, sustainability, and broadening our investor base. These achievements position SUPR well for growth and a continued leadership in the UK grocery real estate sector.

A team aligned with shareholders, delivering on strategic initiatives

1. Internalisation reducing costs and enhancing shareholder alignment

In March, we announced our intention to internalise the Company's management function. The Internalisation offered compelling financial and strategic benefits, including estimated annual cost savings of at least £4 million, stronger shareholder alignment, a streamlined management structure and broader investor appeal beyond externally managed vehicles.

The Board agreed to pay Atrato Group a £20.8 million termination fee which secured the termination of the management contract and the transfer of SUPR's staff and Intellectual Property ("IP") to the Company.

The Internalisation is on track to deliver significant cost savings of at least £4 million per year which is equivalent to a c.19% yield on cost, the highest return on capital of any available allocation option at the time of Internalisation. The cost saving has a direct impact to SUPR's EPRA cost ratio with our target of below 9% forecasted to be one of the lowest in the sector. 

EPRA cost ratios (including direct vacancy costs): FTSE350-listed REITs21

The internalised structure materially enhances shareholder alignment with the Company able to retain a team of sector specialists whose goals and remuneration are aligned with shareholder returns. The simplified management structure also provides greater strategic flexibility to explore potential future fee generating opportunities such as joint ventures and broadens SUPR's potential investor universe.

2. Proving rents & outperforming ERVs

In February, we took the decision to agree lease renewals on the three shortest leased Tesco stores in the Company's portfolio. We agreed new 15-year leases with Tesco on supermarkets located in -Bracknell, Bristol, and Thetford - at rents 35% above the MSCI supermarket benchmark index and 13% above the Company's valuer's ERV. These leases included annual RPI-linked rent reviews (capped at 4%, floored at 0%) and extended the portfolio WAULT from 11 to 12 years, with no major renewals now due until 2032.22

Average figures for the three supermarket lease renewals

There was an average 20% reduction in passing rent on these stores which was anticipated in our original acquisition price with our returns analysis guided by the 4% rent to turnover benchmark. The three stores had previously been valued at a c.7% NIY (due to their overrented nature ahead of the lease renewal) compared to our portfolio level NIY of 6% at the time. Following the lease renewals the three supermarkets have been revalued at an average NIY of 5.3% delivering a capital value increase of 8.0%.

This active management of the shorter leases in the Company's portfolio has demonstrated the attractive supermarket rental levels that UK grocers are willing to pay to secure long-term trading from a high performing mission critical site. We believe this should release embedded value in the Company's portfolio that is not yet reflected in valuations.

Long term projections for food price inflation and supermarket sales growth, continue to underpin the affordability of rents in SUPR's portfolio.

A case study on this topic is available on page 21. 

3. Capital recycling, proving valuations and growing earnings

During the year, we sold a Tesco store in Newmarket for a consideration of £63.5 million representing a 7.4% premium to book value. This was acquired by Tesco plc, underlining the strategic importance of strong trading, large format, omnichannel stores to the supermarket operators.

The sale of this supermarket provided further market evidence of our ability to crystallise valuations and release capital from a tight yielding asset which can be redeployed into earnings enhancing opportunities.

In addition, we acquired one omnichannel store in the UK and a portfolio of nine stores in France at a highly attractive spread to the cost of debt of c.2.3%, these were:

· Sainsbury's, Huddersfield (7.6% NIY): an omnichannel store with an 11-year remaining lease term and annual RPI linked rent reviews (0% - 4%), for £49.7 million (excluding acquisition costs). This store was subsequently transferred as a seed asset into the JV. See page 20 for a detailed case study on this store.

· Carrefour tranche two, France (6.8% NIY): a portfolio of nine stores acquired via a direct sale and leaseback with Carrefour, for a total purchase price of €36.7 million24. The transaction was financed through a private placement, with a maturity of seven years and a fixed rate coupon of 4.1%.

We have continued this investment cycle post-year end with two additional acquisitions, totalling £58.9 million excluding transaction costs, including a Tesco in Ashford and a Waitrose in Anglesey, at an average NIY of 7.0% with annual inflation linked uplifts.

4. Growth through strategic partnership

In April, the Company entered into a strategic JV with Blue Owl, seeded with eight of SUPR's high yielding, omnichannel supermarket assets from its existing portfolio. The partnership marked Blue Owl's first investment into the UK real estate market, endorsing SUPR's sector specialism and investment thesis for mission critical grocery real estate.

SUPR will benefit from a management fee of 0.6% per annum of the gross asset value on Blue Owl's stake in the vehicle, equating to c.£1.2 million, or around 0.1p in additional annual earnings, and proceeds from the JV have already begun to be deployed into earnings enhancing acquisitions.

The ambition is to grow the JV up to c.£1 billion in gross asset value over the coming years. The JV transaction also enables SUPR to retain a stake in the assets.

See page 26 for a detailed case study.

Continued progress on sustainability 

Investing responsibly for long-term value creation is embedded in the Company's business model.

The Company has published its third standalone Sustainability Report which details its sustainability performance and priorities for the year ahead.

Sustainability highlights from the period include the enhanced ESG data collection processes implemented to improve the completeness and accuracy of the Company's GHG inventory, the publication of the Company's first Climate Transition Plan, as well as further environmental and social asset management initiatives to benefit both occupiers and local communities. The Company's sustainability efforts have been recognised by the European Public Real Estate Association ("EPRA"), with an EPRA Sustainability Best Practices Recommendations ("sBPR") Most Improved Award and a Silver Award received in September 2024 for the Company's inaugural EPRA sBPR reporting.

For the second time the Company has also undertaken external assurance over its reported location-based Scope 1, 2 and 3 GHG figures for FY25. The Assurance Report is available on the Sustainability page of the Company's website.

· Refer to our standalone Sustainability Report for more information.

Broadening SUPR's investor base

Along with achieving our strategic goals, we have sought to broaden the Company's appeal to a wider investor base:

· Secondary listing on the JSE: in response to positive feedback and strong demand from South African institutional investors, the Company completed a secondary listing on the Main Board of the JSE in December 2024. In March 2025 the Company was included in several South African indices, most notably the FTSE/JSE All Share Index ("ALSI") and FTSE/JSE All Property Index ("ALPI") and has seen a positive response from South African Investors with around 3% of SUPR's register currently on the JSE.

· Change in listing category: transferring from the closed-ended investment funds category to the equity shares (commercial companies) category of the Official List. This structure brings SUPR in line with peers in the UK REIT space, provides the Company with more flexibility to execute transactions as they arise and opens the Company to a wider range of potential investors. 

We believe these initiatives, along with simplifying the management structure through the Internalisation, will increase SUPR's appeal in the investment community.

Outlook 

Following the delivery of our stated strategic initiatives, SUPR is now a more efficient, lower-cost business that is better aligned with shareholders and overall, a more attractive investment proposition to current and prospective shareholders.

The attractiveness of our supermarket investment thesis has been demonstrated through the establishment of the JV which we aim to grow over time. The JV warehouses a long-term asset pipeline while delivering near term capital for us to deploy into earnings enhancing opportunities. We have already begun the redeployment of the JV proceeds and look forward to executing on a large and attractive pipeline. Through this pipeline we expect to deliver a growing and fully covered dividend, which should help to close the remaining discount to NAV.

We have made good progress this year and are pleased to see SUPR's share price appreciating 16% in the calendar year to date alongside the discount to NTA narrowing. We have positioned the business for the next exciting phase of growth as we look to deliver greater scale, liquidity and ultimately dividend growth which more closely matches our rental uplifts.

OUR PORTFOLIO

The portfolio benefits from long unexpired lease terms with predominantly upwards only, index linked leases, helping to provide long-term income with contractual rental growth.

Within the UK, operators typically look at the affordability of rent based on a benchmark of c.4% rent to turnover, simply seen as two weeks of trade. The Group's UK supermarkets average rent to turnover is 4%, which equates to £23 per sq.ft. We have highly secure income with 100% rent collection during the year25, with Tesco and Sainsbury's accounting for 71% of the Group's rent roll. 

The Group's Carrefour stores are subject to annual, uncapped inflation-linked rent reviews and are let on low and affordable rents of €8 per sq.ft. with an average rent to turnover of 2.0%. The rents produce a low capital value of €109 per sq.ft.

As part of the Company's investment strategy to acquire high-quality, strong trading supermarkets, the Company sometimes acquires complementary non-grocery units that are co-located with a store. These units often create a retail destination helping to drive further footfall into the supermarket. Non-grocery assets represent 7% of the Portfolio by value.

During the year, the Company selectively strengthened its wholly owned ("Direct") Portfolio with the addition of 10 supermarkets for a combined total of £81.2 million26, 28.

November 2024: A Sainsbury's in Huddersfield, acquired for £49.7 million. The store has an 11-year unexpired lease term27 and is subject to annual upwards only RPI-linked rent reviews.

February 2025: A portfolio of nine Carrefour supermarkets located in France, acquired for €36.7 million28. The portfolio was a direct sale and leaseback with Carrefour with a 12-year unexpired lease terms and subject to annual, uncapped inflation-linked, rent reviews.

The acquisitions during the year were purchased at an average net initial yield of 7.3%29 providing an attractive spread to the Group's incremental cost of debt and were immediately accretive to earnings. The increased exposure to index-linked income also generates further contractual earnings growth underpinned by strong performing investment-grade tenants.

The acquisitions during the year were financed using existing headroom within unsecured debt facilities and through the €39 million private placement which was announced in February 2025.

For more information on financing arrangements refer to note 22 of the financial information.

The Portfolio's weighting towards investment grade tenants provides secure long-term income with a weighted average unexpired lease term of 11 years. In addition, the portfolio is heavily weighted towards upwards only inflation-linked rent reviews, providing contractual rental growth. The average cap on our UK inflation-linked leases' rental uplifts is 4%, while our French leases are uncapped.

The Portfolio's weighting towards inflation-linked rent reviews is 77% with 56% of the Portfolio being reviewed annually (including post balance sheet acquisitions).

The rent profile of the Portfolio is broadly in line with the affordable market benchmark at 4% Rent to Turnover ("RTO"). The rental maturity profile is well dispersed with the first material lease expiry in 2032.

The UK supermarket Portfolio Net Initial Yield ("NIY") has tightened from 5.8% to 5.7% driven by both the formation of a strategic JV with Blue Owl and the return of market stability which is placing upwards pressure on valuations. The sale of the 50% interest in eight short WAULT stores to the JV has increased the Portfolio Net Reversionary Yield ("NRY") from 5.1% to 5.2%.

Valuation yield metrics for the SUPR portfolio

The environmental efficiency of the Company's stores and prospective acquisitions continues to be a key priority. Improvements in store efficiency are delivered through the ongoing investment by our grocery tenants into their respective store estates. A breakdown of the Company's supermarket EPC ratings can be seen below:

Active asset management delivering additional value and improving sustainability of sites 

Alongside SUPR's tenants, the Company is looking at ways to increase the number of Electric Vehicle ("EV") charging points. SUPR has now installed 58 EV charging bays across five sites. Current EV sites include:

· Morrisons, Workington

· Morrisons, Wisbech

· Tesco, Bradley Stoke

· Tesco, Chineham

· Tesco, Beaumont Leys

The Company has two additional sites agreed and in legal negotiation, which will bring a further 14 EV charging bays to the portfolio.

Opportunities to add complementary discount grocery operators continue to progress. At Chineham, the existing planning consent was successfully implemented, and terms have been agreed with a discount grocery retailer for a new build store. At Bradley Stoke, the development of an additional discount grocery store on the retail terrace is in final legal negotiations after successfully achieving planning consent, with delivery targeted in 2026.

At Chineham, Jett's Gyms has completed fit out works on a 7,000 sq ft vacant unit following the agreement of a new 10-year lease. In addition to this, Savers and Brockenhurst Estate Agents have taken access of two vacant units on the scheme widening the offer at site, encouraging further footfall. Greggs has upsized into a larger unit following strong trading at this location. The new lettings at Chineham have resulted in £167,000 of additional rental income. The final remaining vacant units continue to be marketed widely to secure new occupiers and to continue to add value to the site.

At Bradley Stoke, Loungers Plc is currently fitting out the main unit in the Town Square on a 15-year lease. This will see a material investment by the tenant, modernising a central unit and adding a new tenant to the scheme.

At Sainsbury's, Newcastle, other retail developments are being considered, and negotiations are ongoing with potential tenants for this site.

In anticipation of Homebase's administration, which was announced during the year, SUPR had been proactively engaging with alternative occupiers for the two Homebase units in its portfolio. The Company has facilitated an assignment of Homebase's lease to The Range at Bangor, Northern Ireland, and agreed a new lease with B&M at Hessle. These new agreements have replaced the existing rental income, extended the WAULT and added operators with stronger covenant strength to the portfolio, increasing value. The Range assignment was completed within four months of the administration (albeit there was no void during this intervening period) and B&M new letting was completed within nine months, this included achieving a revised planning consent to allow a widening of the user class from DIY store.

Portfolio valuation

Cushman & Wakefield valued the Direct Portfolio as at 30 June 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.

The Direct Portfolio was valued at a total market value of £1,423 million33. During the year the Company disposed of Tesco, Newmarket for £63.5 million (7% above book value) and eight stores into a newly formed JV with Blue Owl for a total consideration £403.3 million (3% above 31 December 2024 book value).

The Joint Venture properties were valued at a £404.7 million, resulting in a combined Portfolio value of £1,625 million34, reflecting a like-for-like valuation increase across the Company's Portfolio of 1.9%35 vs MSCI All Property Capital Index during the same period which was up 1.5%.

The valuation increase has been primarily driven by our contractual rental reviews, with 77% linked to inflation and 2% on a fixed basis and the capital appreciation achieved on the three Tesco regears. The average annualised increase from rent reviews performed during the year was 3.4%. 

SUPR Investment Case

Defensive sector, resilient through economic cycles

· The UK grocery market has repeatedly demonstrated its defensive characteristics over the last few years, with exceptional resilience during macroeconomic shocks, including the pandemic and recent inflationary cycles

· With consistent footfall and non-discretionary consumer spending, grocery tenants have seen robust performance, supporting sustainable rental growth across the portfolio

UK grocery market expected to grow from £259 billion to £296 billion by 202936

Highly secure and excellent visibility of income

· Long-dated lease structure with an 11-year WAULT

· 100% occupancy and 100% rent received since IPO37

· 77% of rental income is inflation-linked, providing stable, predictable income

· Let to leading operators in the UK and France

11-year WAULT

Cost efficient platform

· EPRA cost ratio is one of the lowest in the sector with costs continuing to be tightly controlled, with a target EPRA cost ratio of under 9%

· Significant cost reductions expected in FY26 to offset the increased cost of finance, meaning the business is now well positioned for growth in a higher interest rate environment

13.0% EPRA cost ratio

Mission critical and future proofed omnichannel stores acting as last mile fulfilment hubs

· The Company is dedicated to investing in grocery properties that are an essential part of national food infrastructure

· Managing a leading portfolio of handpicked, high-quality supermarkets, with a focus on omnichannel stores fulfilling both online and in person sales

· Stores are mission critical to our tenants' operational businesses

93% Omnichannel supermarkets38

Growing store revenues provide sustainable rental growth

· SUPR's key UK tenants, Tesco and Sainsbury's, continue to perform well with grocery sales up 4.9%39 and 4.5%40 in 2025 respectively

· This increase in sales has been primarily driven by strong performance across the existing store estate, rather than through the addition of new stores, supporting sustainable rental growth

Tesco regear rents set 35% above MSCI benchmark index  

THE UK GROCERY MARKET

The UK grocery market has continued its strong performance with the Institute of Grocery Distribution ("IGD") forecasting grocery sales reaching £259 billion this year. This trend is expected to continue in the coming years, with total grocery market sales forecast to grow to £296 billion by 2029. The non-discretionary nature of grocery retail means it remains a highly defensive sector and is well-positioned to maintain growth momentum through 2025 and beyond.

IGD: UK Grocery Market Value 2024 to 2029 (forecast)41

Figure 1

Operators have largely been able to pass on cost rises from changes to National Insurance and the Minimum Wage to consumers, with UK grocery market sales growing by 5.4% in the four weeks to 13 July 2025 compared with last year, above the 5.2% rise in UK inflation in July42. This dynamic underscores one of the key advantages of investing in this non-discretionary spend sector: demand remains resilient, enabling operators to preserve their margins over the long term. As a result, the sector remains well-positioned to navigate inflationary environments without significant erosion of profitability. This supports affordable rental levels, even in a challenging macroeconomic environment.  

UK Grocery Sales Growth vs Grocery Inflation43

Supermarkets remain the dominant sales channel

Over the last five years, the supermarket channel has remained the dominant sales channel in the UK grocery market. Online grocery continues to be a key pillar of the market and one of the fastest growing channels, accounting for 12% of the total market, demonstrating a permanent shift in consumer behaviours following the pandemic. Omnichannel stores remain mission critical for the fulfilment of online sales due to their proximity to customers, existing supply chain infrastructure and the full product ranges that these stores carry to maximise product availability for online orders. 

IGD: UK grocery market sales by channel (£bn)44

While sales growth from the discounters Aldi and Lidl over the last five years has attracted attention, this is primarily driven by new store openings. As illustrated below, when adjusting for store footprint, discounter sales growth trails behind that of full product range supermarkets, with sales per square foot for the discounters rising by only 5%, compared to 12% for the full product range supermarkets from 2022 to 2025.

IGD: Increase in sales per square foot by channel (2022-2025)45

In contrast, sales growth in the larger format stores is being generated from existing store estates, rather than new store openings. Large format omnichannel stores, require multi-acre sites, close to densely populated areas, with good transport links. A lack of available space, strict planning regulations and increased construction costs provide significant barriers to entry for developing new store space. The positive impact of increased sales being fulfilled through existing supermarket sites should result in improved sales densities and enhanced store-level profitability. From a landlord's perspective, this should deliver increasingly affordable rental levels for tenants and a strong foundation for potential rent increases in the future.

Continued strong performance from SUPR's key tenants

Over the past year, the Company's key tenants Tesco and Sainsbury's have continued to be the leading operators in the UK grocery market. As seen in the table below, Tesco achieved the largest increase in market share, driven by its continued investment in stores, product ranges and loyalty schemes. Tesco operates c.400 omnichannel stores in the UK and continues to invest further in its capabilities, recently widening its delivery window for same day orders. Tesco's weekly online orders increased by 10.8% in 2024/25 and basket sizes by 3.6% year on year ("YoY"). The combined impact saw Tesco's online sales increase by 10.2% YoY46.

Sainsbury's reported 4.6% volume growth versus market over a two-year period47 reflecting a rebound in consumer demand following a prolonged period of cost-of-living pressure. Efforts to expand its own label offering and deepen customer engagement with its loyalty programme have helped Sainsbury's capture greater market share, while also positioning the brand for sustained growth in a competitive market.

Together, Tesco and Sainsbury's, continue to anchor the UK grocery sector, reinforcing the defensive nature of the asset class and supporting long-term income visibility for the Company.

Turning point for Asda and Morrisons

Following the private equity takeovers of Asda and Morrisons, both operators struggled to maintain market share as increased debt costs and senior management turnover disrupted operations and hampered price competitiveness. 

Morrisons reacted more quickly focusing on price through initiatives such as the More Card loyalty scheme, launched in May 2023. The initiative reached 5.6 million active users by June 2024 and by January 2025, it was used in 76% of Morrisons' transactions, successfully driving customer engagement52. Morrisons has also refocused its online presence; the operator will gradually phase out its use of the Erith centralised customer fulfilment centre ("CFC") and integrate Ocado's AI technology to fulfil more orders directly from its existing store estate. This has enhanced customer engagement, streamlined operations and has positioned the business for more cost-effective growth in a competitive grocery market. Morrisons has reported improved trading in 2025, with second quarter like-for-like sales up 3.9% and total sales rising 4.2% to £3.9bn53.

Asda experienced a larger decline in market share, falling from 14.3% in November 2022 to 12.1% in June 2025. However, 2024 saw the return of former CEO, Allan Leighton as Executive Chairman, who has refocused the operator on value, with the Rollback campaign successfully lowering prices by an average of 22% across 50% of its products. This is proving successful. Asda has won the Grocer 33 Price Award for the lowest-cost major supermarket 18 weeks out of the 32 between January and August 2025 and has been identified as the cheapest supermarket by Which? in the six months between January and July 2025. The operator is yet to see an increase in market share, however it reported its fourth consecutive quarter of improved like-for-like sales for the period ending 30 June 2025, representing an improving trend in sales performance. 

This indicates a turning point for Asda and Morrisons' performance with both operators stabilised and positioned for growth.

THE FRENCH GROCERY MARKET

IGD: Grocery market sales (2024 actual, 2025-2029 forecasted)

The French grocery market has showed consistent and prolonged growth, with total sales forecast to reach €329 billion in 2029, representing 3% annual growth. The market is highly consolidated with over 60% of market share controlled by three operators E.Leclerc, Carrefour and Intermarche. Over the last 12 months, Carrefour has increased its market share from 19.3% to 21.5% primarily driven by the strategic acquisitions of the grocery operators, Cora and Match. This brings it much closer to the market leader, E.Leclerc, which has a 24% market share.

Additionally, Carrefour has recently launched a €1.2 billion cost-saving initiative which will contribute towards price investment initiatives such as 'Le Club Carrefour' which was announced in 2025 and delivered its first wave of price cuts in March, earlier this year. 

Online Grocery Market Sales (2024 actual, 2025-2029 forecasted)54

Similar to the UK, the pandemic has permanently enlarged the French online grocery market with the channel experiencing 88% growth between 2018 and 2025; a further 21% growth is expected by 2029 making it the fastest growing channel in the grocery market. Due to lower population density the primary online model in France is Click & Collect, accounting for 80% of all online orders; by comparison Click & Collect represents 20% of the UK online grocery market. Online fulfilment in France is also dependent on omnichannel stores, with baskets picked in store and the majority of customers travelling to a site to receive orders. As part of its 2026 strategic objectives, Carrefour Group has highlighted the importance of omnichannel to its strategy. Carrefour's objective is for omnichannel customers to represent 30% of all its customers by 2026 as omnichannel shoppers spend more on average and have a higher retention rate than customers from stores alone55.

Investment market

Since IPO, transaction volumes have remained broadly flat with a long-term average of £1.7 billion per year56. However, during the year UK supermarket volumes have been constrained (at £1.0 billion) reflecting a shortage of available stock and a preference for potential sellers to hold supermarket assets as they provide stable inflation-linked cashflow backed by strong tenants. The constrained supply and greater visibility on future cost of capital is expected to place upwards pressure on valuations.

This year, there has been a return of a broad range of market participants bidding for supermarkets assets. Active buyers in the market include Royal London Asset Management, ICG, Local Government Pension Schemes, and French property funds (SCPI's). A key driver of the increased demand is the appeal of long term, inflation linked earnings in a higher interest rate environment. The secure earnings derived from these mission critical assets offer a compelling safe haven asset for investors seeking stable, predictable and growing income against the current macroeconomic backdrop.

Supermarket property valuations are showing signs of stabilisation, and a gradual recovery from the 2023/24 levels, supported by competitive bidding and new sources of capital entering the market.

This presents an attractive entry point in the cycle. SUPR has demonstrated its ability to sell assets above book value and redeploy capital at wider yields, leveraging the team's deep asset selection expertise. As a sector specialist, SUPR continues to identify earnings-accretive opportunities that support scale while maintaining capital discipline.

Further supporting this growth trajectory is SUPR's debut sterling bond issuance in July 2025, fixed at a 5.125% coupon. This issuance will help extend the maturity profile of SUPR's debt and provide a stable foundation for continued expansion.

FINANCIAL OVERVIEW

Summarised Financial results

1. Adjusted to exclude exceptional items relating to legal fees incurred in relation to the management internalisation (£0.6 million), JSE listing fees (£0.2 million), and non-cash accelerated loan arrangement fees (£0.3 million)

2. \* The Company previously included an additional earnings measure called "Adjusted earnings" and "Adjusted EPS". The metric adjusted EPRA earnings by deducting one-off items such as debt restructuring costs.

3. Change in fair value of investment properties including joint venture assets at share

4. The termination fee includes; £19.7 million termination of investment advisory agreement, an additional £0.3 million for the termination of the AIFM agreement and a further £0.8 million for the provision of transitionary services.

Net rental income

The portfolio generated net rental income of £113.2 million for the year ended 30 June 2025, compared with £107.2 million in the prior year. This represents an increase of £6.0 million or 5.6%, driven by the positive net impact of like-for-like rental growth and income from acquisitions, partially offset by the impact of property disposals.

On a like-for-like basis, EPRA net rental income increased by 2.4% (30 June 2024: 2.1%). During the year, 45 rent reviews were successfully completed, generating £3.1 million of additional rental income, equating to a 4.1% uplift (or 3.4% on an annualised basis).

Direct property expenditure remained broadly stable at £0.8 million (30 June 2024: £0.6 million). The portfolio continues to deliver a gross to net margin of 99.3% (30 June 2024: 99.4%), which remains among the highest in the sector. This reflects the strength of our single-let strategy and the high covenant quality of our tenant base.

Rent collection remained robust, with 99.7% of rent collected for the year (30 June 2024: 99.9%). During the year, Homebase entered administration, however, both impacted assets have been successfully relet to tenants with significantly stronger covenants, enhancing the quality of income.As at 30 June 2025, the portfolio maintained a low EPRA vacancy rate of 0.3%, underscoring the high quality of our portfolio and proactive asset management.

Administrative expenses and EPRA cost ratio

Administrative expenses have reduced by 5% to £14.5 million, reflecting the operational efficiencies gained following the Internalisation in March 2025.

Driven by these cost efficiencies achieved through the Internalisation, our EPRA cost ratio improved by 170 basis points, reducing to 13.0% for the year. We anticipate further savings in the financial year ending 30 June 2026 and remain focused on achieving an EPRA cost ratio below 9%, consistent with our commitment to disciplined cost management and operational optimisation.

Net finance costs

Net finance costs increased by £10.7 million to £27.0 million, primarily driven by a £113.6 million rise in the average drawn debt balance compared to the prior year, alongside an increase in the weighted average cost of debt.

In May 2025 we received £200.4 million net proceeds from the completion of the strategic JV with Blue Owl. In the near term, we have used these proceeds to pay down existing debt drawn under revolving credit facilities and the purchase of the Tesco store in Ashford after the year end.

EPRA earnings

The Company delivered EPRA earnings of £74.2 million for the year ended 30 June 2025, compared to £75.8 million in the prior year. EPRA earnings per share were 6.0 pence, down slightly from 6.1 pence in 2024, representing a 2% decrease.

EPRA earnings are a key measure of the Company's underlying operating performance, and therefore, excludes non-recurring items. The marginal decline in earnings per share reflects temporary cash drag as the Company continues to redeploy net proceeds from its recently completed JV.

The Board remains confident in the Company's strategic direction and its ability to generate sustainable long-term value.

A full reconciliation between IFRS and EPRA earnings can be found in note 12 of the Financial Statements.

EPRA net tangible assets and IFRS net asset

EPRA net tangible assets ("EPRA NTA") is considered to be the most relevant measure for the Group and includes both income and capital returns but excludes fair value of interest rate derivatives and includes revaluation to fair value of investment properties held at amortised cost.

At 30 June 2025, EPRA NTA was £1,088 million (30 June 2024: £1,085 million), representing an EPRA NTA per share of 87.1 pence, an increase of 0.3% since 30 June 2024, with realised and unrealised gains from our investment property portfolio being mostly offset by the one-off termination payment in respect of the Internalisation.

Including dividends paid in the year, our Total Accounting Return ("TAR") was 7.2% compared with 0.3% in the prior year.

Portfolio Valuation

Our Portfolio, which includes share of joint ventures and the fair value of financial assets held at amortised cost, was valued at £1.6 billion as set out below:

During the year, the Group continued to actively manage its portfolio through selective acquisitions and disposals aligned with its strategic objectives.

The Group acquired a Sainsbury's omnichannel supermarket in Huddersfield for a total consideration of £49.7 million, excluding acquisition costs. In addition, the Group expanded its footprint in France with the acquisition of a portfolio of nine Carrefour omnichannel supermarkets24 for €36.7 million28, also excluding acquisition costs.

The Group disposed of a Tesco supermarket in Newmarket for £63.5 million, representing a 7% premium to book value. Furthermore, eight supermarket assets were transferred into the Group's strategic JV, at a value of £403 million, achieving a 3% premium to book value.

Valuation yields remained broadly stable throughout the year. The Group recorded a revaluation gain of £30.7 million, equivalent to a 1.9% increase, primarily driven by contracted rental uplifts and the capital appreciation achieved on the three Tesco regears.

Net Debt, Leverage and Financing

Adjusted net debt is a proportionally consolidated measure, which includes the Group's share of joint ventures, and is represented as bank borrowings, less cash and cash equivalents.

The Group's adjusted net debt reduced by £152 million during the year, closing at £503 million (30 June 2024: £655 million). This reduction was primarily driven by net proceeds received from the disposal of eight supermarket assets into the Group's strategic JV with Blue Owl.

These proceeds were initially utilised to repay amounts drawn under existing revolving credit facilities, resulting in a significant improvement in the Group's leverage metrics. At year-end, the net debt to EBITDA ratio stood at 5.1x, down from 7.1x in the prior year. On a weighted average basis, the ratio was 7.4x for the year.

The Group expects adjusted net debt to increase over the course of the next financial year, as the net proceeds from the JV are redeployed into the Group's attractive pipeline of investment opportunities. Accordingly, the net debt to EBITDA ratio is anticipated to rise and is expected to operate within a medium-term target range of 7.0x to 8.0x.

Financing

1. Figures presented for 30 June 2025, include post period end transactions and are therefore stated as at the date of these report and accounts.

The Group continued to actively manage its debt structure during the year, executing a series of strategic financing transactions across a range of markets. These actions were aimed at optimising the Group's capital structure and further strengthening its financial position.

Including post period end activity, the Group has raised £652 million of new debt (including share of joint venture) and repaid £322 million of near-term facilities:

- In July 2024, the Group completed its first private placement debt issuance with a group of institutional investors. The €83 million senior unsecured notes have a maturity of seven years and a fixed rate coupon of 4.44%.

- In July 2024, the Group refinanced its £97 million secured debt facility with Deka through a new £100 million unsecured facility with ING Bank N.V., London Branch. The interest only facility has a maturity of three years and is priced at a margin of 1.55% over SONIA.

- In February 2025, the Group completed a €39 million private placement with a seven-year maturity and a fixed rate coupon of 4.10%.

- In April 2025 the Group signed a £90 million unsecured bi-lateral term loan facility with Barclays. The net proceeds were used to refinance the Company's existing secured debt facilities with Wells Fargo and Bayerische Landesbank of £30 million and £55.4 million respectively. The facility has a three-year term and is priced at a margin of 1.55% above SONIA and hedged with a cap of 3.45% against SONIA.

- In June 2025, the Group signed a new £215 million secured term loan facility for its JV with Blue Owl, through a bank syndicate comprising Barclays, HSBC, ING and SMBC. The facility is priced at 1.50% above SONIA and has been hedged via interest rate swaps, fixing the interest at 5.10% for the three-year term (excluding fees). It was undrawn as at 30 June 2025.

Post year end

- In July 2025, the Group completed a debut £250 million Sterling bond issuance, with a six-year term and a coupon of 5.125%, 115 basis points over Gilts.

As a result of these transactions, the weighted average debt maturity profile of the Group has improved significantly, increasing by 1.9 years to 3.9 years (at the date of this report). The Group has c.£450 million of undrawn facilities and available cash, which we expect to utilise for deployment into the Group's attractive pipeline of investment opportunities.

The Group's interest rate risk is mitigated through a combination of fixed debt and derivative interest rate swaps and caps. 100% of the Group's drawn debt is fixed or hedged, and further to the £250 million bond issuance, we intend to use the value of existing interest rate derivatives to hedge the Group's overall interest rate exposure to c.4.7%, once the JV proceeds have been redeployed.

The Group maintains good long-term relationships with all lenders and is currently in discussions regarding the refinancing requirements over the next financial year.

The Group continues to monitor its banking covenants and maintains significant headroom on its LTV and ICR covenants. As at 30 June 2025, property values would need to fall by around 40% before breaching the gearing covenant. Similarly, net operating income would need to fall by 54% before breaching the interest cover covenant.

Fitch Ratings, as part of its annual review, reaffirmed the Group's BBB+ rating with a stable outlook.

Financial Summary

The financial year has been transformative for the Company, marked by the successful execution of strategic initiatives aimed at enhancing operational efficiency and strengthening the balance sheet. These initiatives have already delivered cost efficiencies, and the Company expects further savings in the financial year ending 30 June 2026, with a continued focus on achieving an EPRA cost ratio below 9%.

In addition, the Company undertook a series of financing transactions, which have extended the average debt maturity profile, diversified funding sources, and enhanced liquidity. As a result, the Company is well positioned to execute on a high-quality pipeline of investment opportunities, supporting its long-term growth strategy.

TCFD CONSISTENT CLIMATE-RELATED FINANICAL DISCLOSURES STATEMENT 2025

Energy and GHG Emissions Foreword  

Recognising the urgent need to address climate change and support the transition to a net zero economy, the Company is committed to reaching net zero greenhouse gas ("GHG") emissions across its value chain by 2050.

During the reporting period, the Company reached a further milestone linked to its net zero commitment, with the publication of its first Climate Transition Plan ("Transition Plan"). The Transition Plan details how the Company intends to reduce its emissions in line with the Company's Science Based Targets initiative ("SBTi") approved emissions reduction targets, building on the initial decarbonisation analysis conducted when the Company's targets were first set in 2024.

The publication of the Transition Plan reflects the Company's belief in the importance of transparent, decision-useful sustainability reporting to improve our accountability to stakeholders. The Company's SECR and TCFD Report can be found below on pages 36 to 48. In addition, the Company's GHG independent limited-assurance report and standalone Sustainability Report, covering its wider performance against the three pillars of its Sustainability Strategy, are both available on the Company's website.

The Company remains committed to further progressing its climate-related strategy and emissions reductions activities, as it continues to make progress on its Transition Plan and Net Zero commitment. 

Streamlined Energy and Carbon Reporting ("SECR")  

The below table and supporting narrative summarise the Company's SECR disclosure, in compliance with the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. Data for the years FY24 and FY25 is included as this is the Company's third year of SECR disclosures. 

In 2025, the Company successfully completed the internalisation of the Company's management function. From March 2025 SUPR formally employs staff, moving away from the external advisory arrangement with Atrato Group. As a result, emissions from SUPR office consumption (Scope 1 and 2), Waste, Business Travel and Employee Commuting (Scope 3) are now being calculated as part of the GHG inventory. This year, emissions from waste generated in SUPR-controlled communal areas of the Company's assets have also been accounted for.

An error in the electricity and gas data at Willow Brook Shopping Centre was found for the previous reporting year (FY24), resulting in missing Scope 1 and 2 emissions reported last year. This has now been rectified and restated figures are included in the table below. The correction has resulted in a 121% increase in Scope 1 and 2 emissions and a 0.4% increase in total emissions for the reporting year FY24. This has not led to a material change in estimations - see appendix for further detail. Year-on-year comparisons will compare the current reporting year (FY25) against these corrected values for the previous reporting year (FY24).

Compared to the previous reporting year (FY24), there has been a decrease in Scope 1 emissions from 56 tCO2e to 18 tCO2e (68% reduction) in the current reporting year due to improved accuracy of data and reduced consumption. In contrast, there has been an increase in Scope 2 location-based emissions from 172 tCO2e to 253 tCO2e (47% increase) due to improved accuracy of data and increased consumption. For seven of the communal areas, the use of renewable electricity at these sites, evidenced by green electricity certificates, has resulted in a decrease in total Scope 2 market-based emissions in this reporting period (see Table C). Due to this overall increase in the Company's Scope 1 and 2 location-based emissions, emissions from Fuel and Energy related activities ("FERA") (Scope 3 category 3) have also increased from 66 to 86 tCO2e (30% increase) for this reporting year.57

Emissions from Purchased Goods and Services (Scope 3 category 1) have increased from 2,215 to 3,882 tCO2e for this reporting year, driven by an increase in spend. This is likely linked to internalisation process as the main increase was detected in spend related to legal and financial services. This year no newly built properties have been added to the portfolio; therefore, no emissions are attributed to Capital Goods (Scope 3 category 2).

In April 2024, SUPR acquired a portfolio of Carrefour omnichannel supermarkets in France through a sale and leaseback transaction. This is the first year these assets have been included in the reporting. Additionally, one UK supermarket has also been acquired in this reporting year. Even with the acquisition of this new asset and the inclusion of Carrefour assets, Scope 3 energy consumption and resultant emissions from Downstream Leased Assets (Scope 3 category 13), which includes tenant Scope 1 and 2 emissions, have decreased from 81,931 to 59,138 tCO2e (28% decrease). Our calculation of downstream leased assets emissions includes refrigerant emissions alongside energy use given the material consumption of refrigerants used in supermarkets. This goes beyond the minimum boundaries required by the Greenhouse Gas Protocol. This year's reduction in emissions is primarily driven by the increased availability of refrigerant data from supermarket tenants, offering a more accurate representation of refrigerant-related emissions, but not reflecting an actual decrease in emissions. We will consider how this newly available data may be used to support more accurate recalculation of base year emissions in future. A decrease in supermarket tenant electricity consumption has also reduced absolute Scope 3 category 13 emissions. Overall, total Scope 1, 2 and 3 emissions have decreased from 84,621 tCO2e in the previous reporting year to 63,423 tCO2e (25% reduction) in the current reporting year. 

Methodology 

The FY25 footprint within the scope of SECR reporting is equivalent to 272 tCO2e, for mandatory emissions reporting, and 63,423 tCO2e, including voluntary emissions, with the largest portion being made up of emissions from downstream leased assets at 59,138 tCO2e.

Anthesis (UK) Limited ("Anthesis") has calculated the above GHG emissions to cover all material sources of emissions for which the Company is responsible. The methodology used is aligned with the GHG Protocol: A Corporate Accounting and Reporting Standard (revised edition, 2015). Responsibility for emissions sources was determined using the operational control approach. All emissions sources required under The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 are included. 

Raw data captured in spreadsheets including energy spend and consumption data has been collected by the Company. Where actual consumption data was available for natural gas, electricity and refrigerants, this was used. To address data gaps, the most appropriate proxy was applied by using either previous year's data, actual data to calculate average monthly consumption, or by applying the average floor area intensity from sites with actual data. Average floor area intensity calculations excluded high-consumption outliers; for example, estimates for carpark sites were derived solely from other carparks, which are expected to have comparable energy intensity. Fuel oil was estimated by applying the average 2024 UK fuel oil price to the budgeted spend for fuel oil. Fuel oil estimated energy was then converted to GHG emissions using the UK Government's GHG Conversion Factors for Company Reporting 2024.

Scope 3 emissions have been calculated for relevant material categories using consumption data, spend data, floor area and EPC data. Fuel and Energy related activities includes well-to-tank ("WTT") and transmission and distribution ("T&D") upstream emissions from Scope 1&2. For Purchased Goods and Services, Environmentally Extended Input Output ("EEIO") has been used. Spend data was provided per supplier and mapped to 2023 DEFRA Input/Output ("IO") categories. No newly built sites were acquired during this reporting year, therefore there were no Capital Goods this year.

Where actual data was not available for Downstream Leased Assets, industry energy consumption benchmarks were used in combination with EPC data on energy use and heating type. This year, full or partial refrigerant data was provided for all supermarket tenants. Where refrigerant data was only partially provided, publicly available air conditioning ("AC") certificates were used to determine the type and amount of refrigerants. Where this was not available, other similar sites were used as proxies to estimate refrigerant consumption. Supermarket refrigeration capacity and non-food air conditioning was estimated using floor-area intensity data from EPA where actual data was not available. Refrigerant loss rate for refrigeration appliances was estimated from Direct Emissions from Use of Refrigeration, Air Conditioning Equipment and Heat Pumps from DEFRA.

Biogenic carbon emissions from combustion of biomass have been excluded from the Scope 1, 2 and 3 emissions reporting in the table above as per the GHG Protocol they must be reported separately. Biogenic CH4 and N2O have been included in the emissions reporting table. Biomass energy consumption resulted in 15,848 tonnes of biogenic CO2 in the 2024-2025 reporting period. kWh energy consumption associated with biomass is included in the table above.

The Company continued its efforts to improve energy efficiency across landlord-controlled areas and to support tenant-led energy efficiency measures in FY25, as discussed in the TCFD Report below and the Company's standalone Sustainability Report.

Approach to GHG emissions restatements  

To improve its GHG reporting, the Company may restate previously reported data to provide a more accurate representation of previous performance and its decarbonisation journey, should a significant change or error be identified, such as: 

· Significant changes in company structure and activities

· Methodology changes such as improvements in emissions factors, data access and calculation methodologies 

· Discovery of significant error(s) in previously reported data 

The Company will restate the FY23 baseline used for its Scope 1, 2 and 3 emissions reductions targets if any of the changes above result in a change of 5% or more, in line with the requirements of the SBTi. The impact of the Carrefour portfolio acquisition, along with methodology changes from improved refrigerant data accuracy, has been assessed against the Company's SBT baseline. This assessment revealed a change in base year emissions exceeding 5%, prompting the Company to recalculate base year emissions (see Table C).

Taskforce on Climate-Related Financial Disclosures ("TCFD") 

Introduction 

The Company has complied with the requirements of the Financial Conduct Authority's ("FCA") UK Listing Rules ("UK LR") 6.6.6.(8) by including its TCFD Statement for FY25 below.

The Company's statement is consistent with the four core TCFD pillars, in relation to governance, strategy, risk management and metrics and targets, and all eleven underlying specific recommended disclosures.66

The Company's key progress on its climate strategy and net zero commitments include an updated climate risk assessment (encompassing the portfolio of Carrefour assets for the first time), refreshed emissions reduction modelling and publication of the Company's first standalone Transition Plan in June 2025.

Governance 

Describe how the board exercises oversight of climate-related risks and opportunities: 

The Board is responsible for overseeing the Group's risk management framework, including the consideration of climate-related risks and opportunities affecting the business, as part of its wider oversight of the Company's sustainability strategy.

To ensure the effective oversight of climate-related issues and the wider sustainability strategy of the Company, the Board established its ESG Committee in May 2022, whose role helps to ensure that sustainability issues, including climate change, are discussed in sufficient detail and given appropriate focus at the Board level. The ESG Committee, Chaired by Frances Davies, meets at least four times a year. See the ESG Committee Report on pages 82 to 83 for more details on Committee members and how the Committee operates.

The Board and ESG Committee is primarily informed of climate-related issues by the Company's Sustainability Consultant through the meetings of the ESG Committee, at which an ESG Update Paper is presented covering relevant climate related issues, progress against targets and broader sustainability strategy updates. The Committee monitors the Company's ESG performance against the KPIs shown in the Metrics and Targets section of this report. As the Company contracts the sustainability function to Atrato, the Sustainability Consultant plays a key role in ESG matters and climate-related issues.

Climate-related issues are also considered by the Board and the Company's management team in acquisition, development and asset management decision making. This process is described below under the managing climate-related risks section of this statement.

The Company's governance structure regarding climate risks and opportunities is summarised in Figure 1.

Figure 1 | Governance structure related to climate-related risks and opportunities 

Climate and Environment remains one of the three key pillars of the Company's Sustainability Strategy. The ESG Committee receives a report and verbal update from the Company's Sustainability Consultant at every quarterly meeting in relation to this aspect of the strategy, and the other two pillars (namely, Tenant and Community Engagement and Responsible Business).

The ESG Committee update includes the Company's quarterly performance against environmental metrics and broader delivery of the Company's sustainability strategy, including activities such as the roll-out of rooftop solar photovoltaic ("PV") and EV charging, improvement of Energy Performance Certificate ("EPC") ratings, ESG-related investor engagement and climate transition planning. These updates allow the ESG Committee to oversee the Company's performance against the sustainability strategy. The ESG Committee is also involved in the review process and ultimate approval of the Company's TCFD Report.

The Board is committed to ongoing improvement of the Company's climate-related disclosures. During the reporting year, sustainability consultancy Anthesis was again engaged to provide external support to help shape the Company's response and alignment to the TCFD recommendations. As part of this support, Anthesis provided analysis of, and recommendations on, the Company's final disclosures to further advance its progress against best practice approaches.

The Board is invested in enhancing the Company's understanding of climate risks and opportunities and, as part of this, approved budget allocation for ongoing climate-related activities, for the next reporting year. This facilitates forward planning and preparation of ESG matters targeted for the next reporting year. 

The Board recognises that appropriate training and upskilling is a key enabler to ensure successful implementation of the Company's sustainability strategy and, specifically, the integration of sustainability factors into the investment process. During the reporting period, the Company's Sustainability Consultant delivered training to the Company's employees on the topic of transition planning and the Company's GHG inventory, in order to support the management of these issues in the Company's activities.

Describe management's role in assessing and managing climate-related risks and opportunities: 

Climate-related risk and opportunity considerations are integrated within management roles in the investment and asset management decision making process, ensuring that the potential financial impacts of climate-related issues are evaluated and addressed.

The Company has an internal ESG Working Group, led by the Company's Sustainability Consultant. Climate risk and TCFD is a material topic for this Working Group, and therefore is a standing agenda item at the meetings of the ESG Working Group to ensure frequent messaging and updates on climate-related topics, as well as to facilitate and enhance understanding of climate impacts across teams. Additionally, the Company seeks to ensure climate-related issues are a standing item when engaging with the Company's tenants. This includes discussion on topics such as any planned tenant-led investments in store refurbishments and energy efficiency upgrades, energy consumption data sharing and improvements to EPC ratings. Such engagement occurs multiple times per year and more frequently with larger site tenants.

Sustainability Consultant

The Company's Sustainability Consultant is responsible for the day-to-day delivery of the Company's sustainability strategy, as approved by the Board, including the assessment, management and reporting of climate-related risks and opportunities, and leads the provision of climate risk advice to the Company's Senior Leadership Team. The Sustainability Consultant also has responsibility for overseeing relevant climate-related targets and the preparation of the Company's climate-related reporting and co-ordination of third-party service providers who provide input into this, including overseeing preparation of the Company's GHG inventory and the independent limited GHG assurance process.

Internal ESG Working Group

The ESG Working Group, led by the Company's Sustainability Consultant, consists of the following members: the Company's CEO, Head of Operations and IR, and Head of Asset Management. The Working Group is responsible for oversight, monitoring and management of sustainability risks and opportunities including those related to climate change. This includes the review, monitoring and management of climate-related risks relevant to current and future assets in the portfolio. The Sustainability Consultant and Asset Management aim to meet at least fortnightly to discuss ESG issues impacting the Company, and climate risk is a standing agenda item as part of these meetings. The Company's CEO and Head of Operations and IR join on an as needed basis. Other employees of the Company, including the Investment Director, are invited on an ad-hoc basis to meetings with climate-related agenda items. Meeting minutes are circulated to the full Working Group following every meeting.

Strategy 

Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term. 

In accordance with TCFD recommended disclosures, the Company has identified climate-related risks and opportunities across two key categories: (1) physical risks related to the physical impacts of climate change (acute and chronic) and (2) transition risks related to the transition to a low carbon economy (policy, legal, technology, and market). 

The Company considers these risks over three key time periods: from 2025 until 2030 (near-term), from 2030 to 2050 (medium-term) and 2050 to 2100 (long-term).

Over the last year, the Company carried out an updated transition and physical climate risk analysis for the entire portfolio, including the Company's French assets for the first time. Further information on the Company's approach to Scenario Analysis is available in the Risk Management section of this TCFD report. For the second year, the Company utilised the MSCI Real Assets (Real Estate) Climate Risk Tool (the "MSCI tool") and associated Climate Value at Risk ("CVaR") outputs to support this analysis and quantify the physical risks across the post-2050 (long-term) time horizon.67

The Company considered three key temperature scenarios as part of its scenario analysis conducted this year: 

These scenarios were chosen following the recommendation of MSCI as being preferred scenarios for this type of climate analysis and in the absence of an established real estate industry standard. The Delayed Transition scenario is a further scenario to the Company's FY24 analysis to incorporate a "middle of the road" approach in contrast to the more ambitious, but potentially unachievable 1.5°C scenario (due to insufficient global action). Further details the data sets used as part of the Company's scenario analysis are included in the appendix of this TCFD Report. 

The outputs provide a quantitative risk assessment using set Financial Risk Categories determined based on the asset's CVaR, which then supports an assessment of the portfolio's exposure to climate-related physical risks and associated value at risk. For each hazard and for the transition risk, the CVaR is classified into one of seven buckets as shown in Figure 2 below.68

Figure 2 | Financial Risk Category 

The Company recognises the MSCI tool is only one of many different scenario analysis tools currently available on the market. Such tools and the underlying data models and inputs they utilise rely on certain assumptions and are constantly evolving as climate research and available data sets continue to advance. This was seen during the reporting period with a change in the underlying flood model used by the MSCI tool, with MSCI adopting a new third party flood model (Fathom) to replace its legacy model. Key changes and strengths with the new Fathom Global Flood Map include:

·  The ability to assess three types of flood risk: coastal, fluvial and pluvial - also known as surface flooding (previously only coastal and fluvial hazards were available)

· Sophisticated flood protection modelling in which only the overtopping water causes flooding (based on open-source protection datasets and manual collection in collaboration with regional stakeholders).

Deeper dive analysis enables enhanced understanding of the impact of climate-related risk. This year, the Company has chosen to build upon the physical risk analysis conducted in FY24 in three key ways:

1. FY25 UK Analysis Update: Refreshing the UK flood risk analysis that was first conducted in FY24 through the updated MSCI tool; and

2. Carrefour Analysis: Expanding coverage of physical risk analysis to the Carrefour portfolio of assessments, ensuring climate analysis over the Company's entire portfolio.

3. Ongoing Climate Due-Diligence: Utilising a combination of both the MSCI tool and UK Government Flood Risk tool to conduct climate-risk reviews for all assets as part of pre-acquisition due diligence.

FY25 UK Analysis Update

In FY25, the MSCI tool was again used to conduct a physical risk assessment, identifying the percentage of the Company's UK assets at above negligible risk.69 The assessment aimed to refresh the FY24 flood risks findings (which was identified from the FY24 results as the key physical risk the Company is exposed to).

The outputs of this assessment under the high emissions 3°C (Current Policies) temperature scenario (applying a 2050 time horizon and aggressive outcome)70 highlighted the following results for the portfolio71:

· The vast majority (86%) of the Company's UK assets are exposed to negligible (>0 to 0.5% CVaR) aggregate physical risk overall. 

· 93% of the Company's UK assets have either no identifiable or negligible exposure to coastal flooding risk (vs 89% in FY24)

· 100% of the Company's UK assets have either no identifiable or negligible exposure to fluvial flooding risk (vs 83% in FY24).72 

· 95% of the Company's UK assets have either no identifiable or negligible exposure to pluvial flooding risk (risk not measured in FY24).

· This is in line with the MSCI UK Quarterly Supermarket Benchmark which also identifies negligible CVaR from coastal and pluvial flooding and no identifiable fluvial flood CVaR under the same scenario and 2050 time horizon. 

Fluvial and pluvial flood risks reduce significantly under a 2°C (Delayed Transition) temperature scenario and further reduce under a 1.5°C (Orderly) temperature scenario (both applying a 2050 time horizon and aggressive outcome), with 100% of the Company's UK assets having either no identifiable or negligible exposure. However, coastal flood risk remains the same. 

Carrefour Analysis

The same 3°C (Current Policies) (2050 time horizon and aggressive outcome) temperature scenario was applied to the Company's assets in France and highlighted the following results73:

· 96% of the Company's French assets are exposed to negligible (>0 to 0.5% CVaR) aggregate physical risk overall. 

· No identifiable coastal flood risk for any of the French assets.

· 100% of the French assets have either no identifiable or negligible exposure to fluvial flooding risk.

· 96% of the Company's French assets have either no identifiable or negligible exposure to pluvial flooding risk.

Describe the impact of climate-related risks and opportunities on the organisation's businesses, strategy, and financial planning. 

The Company's material climate-related risks remain the same as identified in FY24. Table A below provides a description of each risk and the Company's assessment of potential impact and risk management strategy (including mitigating actions and resilience factors).

Table A| Climate-related risks summary  

In addition to the risks outlined above, in FY23 the Company identified market shifts to be a prospective opportunity. By accelerating deployment of energy efficient measures, setting a Science Based Target ("SBT") and better aligning with tenant preferences, the Company could gain a competitive advantage relative to other commercial landlords who are not as progressive on in their climate and sustainability related ambitions. This could enable increased tenant demand and rent premiums.

During both FY24 and FY25, the Company has acted on this opportunity, first by setting SBTi approved emissions reduction targets and then by preparing and publishing its first Transition Plan. In addition, the Company continues to engage with tenants on the deployment of energy efficiency improvement opportunities and broader asset-level enhancements such as progressing roll out of rooftop solar PV and installation of EV across the portfolio. These measures and the Company's targets in relation to climate-related opportunities are discussed in more detail under the Metrics and Targets section of this report, in Tables B and D.

Over the next reporting cycle, the Company plans to further validate the outputs from the FY25 climate-risk assessment and Carrefour analysis, including specific review into the assets identified from this assessment as being exposed (i.e. above negligible in the ratings) to flooding. Through this ongoing work, where necessary, the Company will determine appropriate strategic responses to validate asset-level flood risk, for example, the development of site-specific flood management plans or engagement of further environmental surveys.

Describe the resilience of the organisation's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.

The Company's scenario analysis outputs from FY25 have highlighted the following findings:

· Overall, the current portfolio is not highly exposed to physical risks given the location of the assets.

· Of the physical risks assessed, flood risk (specifically coastal and pluvial) is the most material risk for the portfolio.

· The impact of climate-related physical risks to the portfolio is expected to become more relevant in the long term under a high emissions scenario. 

· Risks arising from the transition to a low carbon economy are expected to be higher in the short term under a 1.5°C scenario, driven by policy and legal changes, such as potential minimum EPC rating requirements. Under a 3°C scenario transition risks remain low over the short to medium-term until the point whereby policy and legal changes (particularly adaptation measures) are required to address increasing physical impacts. 

A benefit of owning mission-critical real estate is that the Company's tenants make significant investments in maintaining, upgrading and decarbonising the Company's store estate. These investments are linked to the ambitious net zero targets and associated energy efficiency commitments of the Company's largest tenants. Not only do these investments drive improvements in energy consumption at the store level, they have also helped the Company to see an improvement in EPC ratings, supporting the Company with progress against its EPC-related improvement targets. In addition to acting as a transition risk mitigant, these decarbonisation investments and the long-dated nature of the Company's leases also create an incentive for the Company's tenants to build physical climate-resilience considerations into their own long-term management strategies for the stores they occupy.

Further details on resilience factors are also covered in Table A above.

Risk Management 

Describe the organisation's processes for identifying and assessing climate-related risks. 

The Company's approach to risk assessment is as set out in the Our Principal Risks Section on pages 49 to 51.

The Board has responsibility for the Company's risk management and internal controls, with the Audit and Risk Committee reviewing the effectiveness of the Board's risk management processes on its behalf. The ESG Committee is responsible under the delegated authority of the Board for the monitoring of climate-related risks (both physical and transition) which are incorporated into the risk management process.

Pre-acquisition

At the pre-acquisition stage, each potential asset undergoes an ESG due diligence and climate risk assessment, including preparation of asset-specific ESG reports that specifically evaluate climate risk. These reports include an analysis of potential vulnerabilities, such as exposure to flooding and other climate-related physical risks. The emissions reduction targets of the assets tenant(s) is also reviewed to assess alignment with the Company's own targets, as part of each transition review. If climate-related risks are identified in an acquisition opportunity further due diligence will be undertaken, for example additional site surveys and analysis, and consideration of any adaptation measures. The findings from these assessments and any identified risks are reviewed and discussed by the ESG Working Group. This proactive approach ensures that the potential impacts on asset value are understood at the pre-acquisition stage and if the acquisition proceeds, that climate-related risks are managed and monitored going forward.

A key component of the Company's pre-acquisition due diligence relates to the energy efficiency of assets: for example, no asset with an EPC below C can be acquired unless a demonstrable EPC improvement plan is developed, the cost of which is reflected in the investment case for the asset acquisition. Opportunities for the installation of energy efficiency and renewable technology in support of the net zero transition (such as rooftop solar PV and EV charging) as well as potential biodiversity improvement opportunities are also considered as part of the investment case. 

Post-acquisition

A key aspect of the Company's asset management strategy is sustainability performance improvement. The Company's Sustainability Consultant and Asset Management regularly review the operational sustainability performance of the Company's assets including tracking key environmental performance metrics such as EPC ratings, percentage of the portfolio with EV charging and rooftop solar. The Sustainability Consultant oversees the collection of energy consumption and other ESG data directly from tenants which is a key input into the Company's GHG Inventory calculations. This enables the tracking of operational energy performance and YoY emissions against the Company's emissions reduction targets. The Company's Asset Management team has responsibility for managing EPC rating assessments for existing assets in the portfolio, which are conducted on a rolling basis when there are known sustainable improvements to assets, on expiry or following a change to EPC calculation methodology.

The Company has committed to an annual review of its climate-related risks, with the target to annually assess 100% of the existing portfolio of assets and every new asset at acquisition stage. Existing assets undergo Scenario Analysis using the MSCI tool to identify climate-related risks and quantify the prospective financial impact. The Physical Risk model integrated within the MSCI tool assesses the cost of physical risks on buildings, using climate data for the given locations of assets incorporating the hazards of extreme heat, extreme cold, fluvial and coastal flooding, tropical cyclones and wildfire (see Figure 2). However, given the Full Repairing and Insuring ("FRI") nature of the majority of our leases, the Company has adopted this method of scenario analysis as an efficient way to review its portfolio while recognising the limitations of CVaR as a reflection of actual financial risk.

A summary of the key climate data sets integrated into the MSCI Physical Risk model is included in the appendix of this TCFD Report. 

Figure 2 | Physical Risk Hazards: 

Describe the organisation's processes for managing climate-related risks. 

As part of the acquisition due diligence process, the Company undertakes an assessment of each asset against a set of sustainability criteria.

Both physical and transition climate risks associated with the Company's portfolio are assessed and included in the risk register. Materiality and prioritisation determinations are made through impact, likelihood, and risk scoring as a part of the risk register. Inherent and residual probabilities are assigned to each risk, from which a risk score is derived. The climate-related risks included in the Company's Risk Register are updated to reflect the findings from the Company's annual climate risk assessment to ensure that emerging risks and any changes to climate projections or the Company's portfolio are captured. Mitigating actions are described in detail in the risk register, laying out governance structure and processes in place aimed at mitigating each risk. Finally, actions taken to mitigate risks are tracked and recorded in the register.

In addition, the Company's Sustainability Consultant coordinates internal ESG Working Group meetings to allow collaborative communication and management of climate-related risks relevant to current and future assets in the portfolio.

Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation's overall risk management. 

The Company's approach to risk assessment is as set out in the Our Principal Risks Section on pages 49 to 51.

The Company manages its risk related to its emissions profile, and associated regulatory risk, by monitoring, measuring, and disclosing its Scope 1, 2, and 3 GHG emissions, and identifying and progressing available decarbonisation levers, as outlined in the Company's first Transition Plan, published in June 2025.

Tenant engagement is a core pillar of the Company's Sustainability Strategy and includes engagement on energy efficiency measures and support of tenants' own decarbonisation efforts and targets. As part of Scope 3 emissions initiatives over the last reporting period the Company has undertaken increased engagement efforts with tenants on collecting energy consumption and other ESG performance data. 

Metrics and Targets 

Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process. 

To better understand and manage its climate-related risks and opportunities in line with its strategy and risk management process, the Company measures a number of climate-related metrics, see Table B below. 

Table B | Climate-related metrics 

Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 GHG emissions, and the related risks. 

The Company has again engaged external consultants, Anthesis, to prepare its GHG inventory for FY25, covering Scope 1, 2 and 3 emissions. The Company's full GHG inventory, prepared in line with the GHG Protocol methodology is disclosed below in Table C (see Appendix A for further details of the methodology).

Table C | GHG Inventory80 

The Company's scope 1, 2 and 3 emissions total 54,362 tCO2e (location-based) in its FY25 reporting year. Scope 3 accounts for the vast majority of the Company's emissions at more than 99%, totalling 54,091 tCO2e (location-based). This is to be expected as the Company's Scope 1 and 2 emissions from the communal spaces of its assets is relatively immaterial, producing 271 tCO2e (location-based) collectively. The majority of the Company's emissions come from their leased properties which sit under Scope 3, category 13 downstream leased assets.

The Company engaged Grant Thornton UK LLP to provide independent limited assurance over the Company's GHG emission data disclosed in the SECR table above, using the assurance standard ISAE 3000 (Revised) and ISAE 3410, for the year ended 30 June 2025. Grant Thornton has issued an unqualified opinion over the selected data and the full assurance report is available on the Sustainability page of the Company's website: Sustainability - Supermarket Income REIT. 

Improving the quantity of actual (vs estimated) energy and refrigerant consumption data, has been a priority for the Company over the reporting period. As a result, the amount of estimated data has reduced, from 71% estimated in FY24 to 37% estimated data for this reporting period. The improved refrigerant data in FY25 has been the key driver of the reduction in estimated emissions. The majority of the Company's emissions from downstream leased assets come from assets leased out to supermarkets. Therefore, the Company has prioritised engagement on data sharing with its supermarket tenants. As a result of these engagement efforts with supermarket tenants specifically the following improvements have been made: 

· The amount of actual purchased electricity (market based) data in FY23 was 23%, improving to 52% actual data in FY24 and 61% in FY25.

· The amount of actual natural gas consumption data in FY23 was 27%, improving to 70% actual data in FY24 and 66% in FY25.

· Actual refrigeration gas data for the first time: 29% vs 0% in FY24.

This has subsequently improved the overall accuracy of the Company's emissions disclosures on the prior year. This is a marked improvement from FY22 where 100% of emissions were estimated.

Details of the remaining assumptions and proxies used to complete the Company's GHG inventory where actual data was not available, are outlined in the Appendix A. 

Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets. 

The Company has set ambitious climate-related targets, including both near-term and long-term/net zero emissions reduction targets, which were validated and approved by the SBTi in March 2024 see Table D below

Table D | Science Based Targets 

Details on how the Company plans to achieve its Science Based Targets can be found in the Company's standalone Transition Plan. Given the FRI nature of the majority of the Company's lease arrangements and associated limitations to site control, the Company has not yet set further specific targets with regards to the opportunity of on-site solar PV and on-site EV charging installation. However, the Company continues to actively engage with tenants on such opportunities and to support installations wherever feasible.

The Company does not currently use carbon offsets and will be prioritising investment on decarbonisation activities in the near term. In future, the Company may review their application, including how they could support the Company's net zero agenda.

The Company will again review its selection of climate-related metrics and targets over the next reporting period to ensure that it continues to measure and manage its climate-related risks and evolve its approach to meet best practice guidance and stakeholder expectations.

FY26 Priorities

Having now prepared and published its first Transition Plan, the Company is focused on the priority transition activities outlined to ensure continued progress is made to reduce the Company's GHG emissions in line with its science-based emissions reductions targets. The Company will continue to focus on improving its energy consumption and ESG data processes with tenants to improve the amount of actual (rather than estimated) data utilised in its GHG emissions calculations. This, in turn, supports more accurate emissions reduction tracking and enables YoY comparison to help identified priority sites for EPC assessments.

Going forward, the Company intends to take an iterative approach to scenario analysis as a strategic planning tool over time, as external tools and analytical choices evolve and the Company's analysis further matures. The Company will explore how further changes to its strategy and financial planning may be required in light of this information year-on-year.

Appendix A: Methodology notes for GHG inventory  

Methodology and Assumptions

The 2024 Conversion Factors published by the UK Department for Energy Security and Net Zero ("DESNZ") was the main source used for emission factors for UK assets (uplifted from AR5 to AR6). Association for Issuing Bodies ("AIB") factors has also been used for residual emissions factors. The Intergovernmental Panel for Climate Change ("IPCC") 2021 factors were used for refrigerant emission factors. For the electricity consumption of newly acquired assets, located in France, International Energy Agency ("IEA") conversion factors have been used. All relevant categories have been included, and any exclusions are described below.

Scope 1 & 2

For electricity and natural gas, some actual consumption data was provided for communal areas where energy consumption is controlled by SUPR. Where there were gaps, estimations were made using the data from previous year or floor area intensities (based on similar sites within the portfolio, excluding outliers) as proxies. For fuel oil, spend was used as a proxy due to a lack of activity data.

Scope 3 (1. Purchased Goods & Services)

This category was estimated using spend as a proxy and applying Department for Environment, Food & Rural Affairs ("DEFRA") input-output factors kgCO2/GBP) to expenditure.

Scope 3 (5. Waste)

Where data was unavailable, this category estimated waste consumption by using waste intensity of a similar site that provided actual data.

Water consumption was estimated for all sites without data. Previously, this estimation was based on the water intensity of one site with data, however the methodology has been updated to use Real Estate Environmental Benchmark ("REEB") water benchmark intensity in FY25.

Scope 3 (6. Business Travel)

This category was estimated using actual business travel data for SUPR employees and applying UK Department for Energy Security and Net Zero ("DESNZ") conversion factors.

Scope 3 (7. Employee Commuting)

This category was estimated using employee commuting survey results data for SUPR employees and applying UK Department for Energy Security and Net Zero ("DESNZ") conversion factors.

Scope 3 (13. Downstream Leased Assets)

The majority of emissions relate to tenant energy use, particularly for supermarket branches. All supermarket tenants, provided actual consumption data for electricity, heating and at least partial data on refrigerants. Where no consumption data was available, estimations were made using benchmark intensity data based on floor area.

A smaller amount of emissions arises from the communal areas of sites where the Company owns the land but is not responsible for paying for the energy. These emissions were estimated using the floor area intensities of similar sites with actual data.

Note on FERA Emissions:

The GHG Inventory figures have removed FERA emissions that are categorised under Scope 3 category 13: Downstream Leased Assets ("DLA") to align with the SBTi minimum boundary alignment. These FERA emissions are associated with the tenants Scope 1 and 2 emissions that are also categorised under Scope 3 DLA. The figures reported in the SECR Report above account for a fuller view of DLA emissions by including FERA emissions under Scope 3 DLA. Therefore, Scope 3 DLA and consequentially, total Scope 3 figures reported in the SECR Report are higher than figures reported for TCFD due to the exclusion of Scope 3 FERA under DLA in TCFD. 

Appendix B: MSCI Tool 

MSCI Physical Risk Model Data Inputs 

Hazard Exposure and Financial Impact

Risk Management and Internal Controls

Risk management framework

The Board recognises that effective risk management is essential to achieving the Group's strategic objectives and safeguarding stakeholder value. Our risk management framework ensures that risks are recognised and appropriately managed.

Approach to risk management

The Board has overall responsibility for the Company's risk management and internal controls with the Audit and Risk Committee reviewing the effectiveness of the Board's risk management process on its behalf. The risk management framework is designed to identify, evaluate, and manage risks in a manner consistent with the Group's strategic objectives. While they aim to mitigate risk exposure, they cannot eliminate all risks entirely and therefore provide reasonable assurance against material misstatement or loss.

The Audit and Risk Committee supports 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. This process enables the Audit and Risk Committee to provide effective oversight and assurance on the Group's risk governance.

The Senior Management Team is responsible for the ongoing identification of risks across the Group's operations and for ensuring that appropriate internal controls are designed, implemented, and maintained in response to those risks. These controls are embedded within operational processes and are reviewed regularly to ensure they remain effective and proportionate. 

Risk appetite

The Board determines the level of risk it will accept in achieving its business objectives. We have no appetite for risk in relation to regulatory compliance or the health, safety and welfare of our tenants, service providers and the wider community in which we work. We continue to have a moderate appetite in relation to activities which drive revenues and increase financial returns for our shareholders.

Monitoring and Identifying Risk

The Senior Management Team comprises representatives from each business unit, ensuring that risk management is embedded across all operational areas. The Senior Management Team meets regularly to review strategic decisions, assess operational developments, and identify emerging risks.

All identified risks are recorded in the Group's risk register, which is maintained by the Senior Management Team and reviewed regularly by the Audit and Risk Committee. This ensures that the register remains current and reflective of the Group's evolving risk profile.

Emerging risks are a specific focus within the Group's risk management framework. These are assessed both during scheduled risk reviews and in response to significant developments. The assessment process includes input from the Senior Management Team and forms part of the Audit and Risk Committee's broader oversight responsibilities.

Principal Risks and Uncertainties

The Board has conducted a robust assessment of the principal risks that could materially impact the Group's business model, performance, solvency, or liquidity. These risks are reviewed regularly and updated to reflect changes in understanding and external conditions.

The matrix below outlines each principal risk, assessed by impact and likelihood. Key changes to the risk profile, along with mitigation measures and relevant key risk indicators, are detailed in the table on pages 50 to 51.

SECTION 172(1) STATEMENT

The Directors consider that in conducting the business of the Company over the course of the year ended 30 June 2025, they have acted to promote the long-term success of the Company for the benefit of shareholders, whilst having regard to the matters set out in section 172(1)(a-f) of the Companies Act 2006 (the "Act").

Details of our key stakeholders and how the Board engages with them can be found on pages 53 to 55. Further details of the Board activities and principal decisions are set out on page 66 providing insight into how the Board makes decisions and their link to strategy.

Other disclosures relating to our consideration of the matters set out in s172(1)(a-f) of the Act have been noted as follows:

GOING CONCERN AND VIABILITY STATEMENT

Going Concern and Viability Statement

The Directors have considered on the appropriateness of adopting the going concern basis in preparing the Group's and Company's financial statements for the year ended 30 June 2025. In assessing the going concern basis of accounting the Directors have had regard to the guidance issued by the Financial Reporting Council.

Liquidity

At 30 June 2025, the Group had £95.3 million in cash and undrawn committed facilities totalling £117.0 million with no capital commitments or contingent liabilities.

After the year end, the Group also increased its direct debt capacity from £724.0 million to £974.0 million, leaving undrawn committed facilities of £350.0 million available.

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.

Refinancing events

At the date of signing the financial statements, the £104.5 million SMBC facilities fall due for repayment during the going concern period. The Group has £350.0 million debt capacity which can be utilised to refinance the SMBC facility in September 2026, whilst there remains the option to extend this facility.

Covenants

The Group's debt facilities include covenants in respect of LTV, interest cover, unencumbered assets and priority debt.

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.

As at the date of issuance of this Annual Report 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 predominantly upward only rent reviews.

The list of scenarios are below and are all on top of the base case model which includes prudent assumptions on valuations and cost inflation. The Group is 100% fixed or hedged (including post period end refinancings). No sensitivity for movements in interest rates have been modelled for the hedged debt during the going concern assessment period.

The Group continues to maintain covenant compliance 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 18.3%. Property values would have to fall by more than 40.5% before LTV covenants are breached against 30 June 2025 Group valuations.

Having reviewed and considered the scenarios, the Directors consider that the Group has adequate resources in place for at least 12 months from the date of these results and have therefore adopted the going concern basis of accounting in preparing the Annual Report.

Assessment of viability

The period over which the Directors consider it feasible and appropriate to report on the Group's viability is the five-year period to 30 June 2030. This period has been selected because it is the period that is used for the Group's medium-term business plans and individual asset performance forecasts. The assumptions underpinning these forecast cash flows and covenant compliance forecasts were sensitised to explore the resilience of the Group to the potential impact of the Group's significant risks, or a combination of those risks. The principal risks on pages 49 to 51 summarise those matters that could prevent the Group from delivering on its strategy. A number of these principal risks, because of their nature or potential impact, could also threaten the Group's ability to continue in business in its current form if they were to occur. The Directors paid particular attention to the risk of a deterioration in economic outlook which could impact property fundamentals, including investor and occupier demand which would have a negative impact on valuations, and give rise to a reduction in the availability of finance.

The sensitivities performed were designed to be severe but plausible; and to take full account of the availability of mitigating actions that could be taken to avoid or reduce the impact or occurrence of the underlying risks.

Viability Statement

The Board has assessed the prospects of the Group over the five years from the balance sheet date to 30 June 2030, which is the period covered by the Group's medium-term financial projections.

The Board considers the resilience of projected liquidity, as well as compliance with debt covenants and UK REIT rules, under a range of inflation and property valuation assumptions. 

The principal risks and the key assumptions that were relevant to this assessment are as follows: 

Based on the work performed, the Board has a reasonable expectation that the Group will be able to continue in business over the five-year period of its assessment. 

Other disclosures

Disclosures in relation to the Company's business model and strategy have been included within the Strategic Report on pages 1 to 56. Disclosures in relation to the main industry trends and factors that are likely to affect the future performance and position of the business have been included within The Grocery Market on pages 27 to 30. Disclosures in relation to environmental and social issues have been included within the TCFD Report on pages 36 to 48. Employee diversity disclosures have not been included as the Directors do not consider these to be relevant to the Company.

Key Performance Indicators (KPIs)

The KPIs and EPRA performance measures used by the Group in assessing its strategic progress have been included on pages 31 to 32.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30 June 2025

The accompanying notes on pages 114 to 145 form an integral part of these Group Financial Statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2025

The consolidated financial statements were approved and authorised for issue by the Board of Directors on 16 September 2025 and were signed on its behalf by: Nick Hewson (Chair)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 

For the year ended 30 June 2025

For the year ended 30 June 2024

The accompanying notes on pages 114 to 145 form an integral part of these Group Financial Statements.