The value of Supermarket Income REIT’s portfolio fell 13.3% on a like-for-like basis for the last six months of 2022.
The REIT said the decline in valuation reflected the outward shift in property yields ‘applied by valuers as a result of higher interest rates and the overall macroeconomic environment’.
It added that the value decline had been partially mitigated by inflation linked rental uplifts, with an average increase in rent from reviews performed during the six-month period to 31 December 2022, of 3.7%.
Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT plc, said: “Supermarket property has been less volatile than the broader UK property market but has not been immune to the outward yield shift experienced across investment markets.
“We have the advantage of operating in the non-discretionary spend grocery sector which continues to outperform the wider economy. Our high quality, future proof, omnichannel supermarket property portfolio will continue to deliver stable, long term, inflation-linked income for our shareholders.”
