Supermarket Income REIT (SUPR) Initiates Retail Share Offer to Finance £118m Acquisition of Sainsbury's and Tesco Supermarkets

SUPR Opens £250 Minimum Retail Share Offer via RetailBook on 15 July 2026

On 15 July 2026, Supermarket Income REIT plc announced a conditional retail offer of new ordinary shares priced at £0.01 each, distributed via the RetailBook platform. The offer is open to eligible investors physically located in the UK at the time of announcement. The retail offer is expected to close at 3:00 p.m. on 15 July 2026, though the company reserves the right to close earlier if oversubscribed or at its discretion, so investors are encouraged to act promptly.

The minimum subscription is set at £250, making the offer accessible to a wide range of retail investors. RetailBook will not charge commission on applications through the retail offer, though investors may incur fees from their own brokers or platforms. The issue price will be finalized at the close of the bookbuilding process and was not fixed at the time of announcement.

£118m Acquisition Targets Three Supermarkets: Sainsbury's Manchester, Tesco Edinburgh, and Tesco Halifax

Proceeds from the retail offer, combined with the broader placing, will help fund the acquisition of three supermarkets valued at approximately £118 million. The assets include a Sainsbury's store in Manchester and two Tesco stores located in Edinburgh and Halifax. These are operational grocery properties leased to two of the UK’s largest supermarket chains, representing the initial tranche of capital deployment.

For investors, the identification of these major supermarket tenants is significant, as Sainsbury's and Tesco are among the largest UK food retailers by market share. Grocery properties leased to such operators typically offer income stability within the REIT sector. The announcement does not disclose individual asset valuations, lease terms, or unexpired lease durations for these properties.

Additional Pipeline of Six UK Grocery Assets Valued at £98m to Be Partially Funded

Beyond the three named supermarkets, proceeds will also partially fund a pipeline of six UK grocery assets leased to major grocers, with an aggregate consideration of £98 million. Specific locations and tenant identities for these six assets were not disclosed. The term "pipeline" suggests these acquisitions are under offer or advanced negotiation, though exact transaction statuses remain unspecified.

This combined funding approach indicates SUPR is deploying capital across multiple acquisitions simultaneously. Investors should note that pipeline transactions carry completion risk, and the use of proceeds is conditional on successful fundraising completion. Details on individual asset pricing, tenants, or lease agreements for the pipeline properties were not provided.

Retail Offer Supports ISA, SIPP, and GIA Applications via RetailBook Partner Network

Investors can apply for new shares through tax-efficient vehicles such as Individual Savings Accounts (ISAs), Self-Invested Personal Pensions (SIPPs), and General Investment Accounts (GIAs). This is particularly relevant for long-term investors seeking to hold SUPR shares within tax-advantaged wrappers, given the company’s quarterly dividend distributions. Investors should consult their platforms, brokers, or wealth managers regarding application procedures and any applicable fees.

Access to the retail offer is facilitated through RetailBook’s network of investment platforms, brokers, and wealth managers. Some partners may restrict applications to existing shareholders or customers, so not all eligible investors may participate. RetailBook is authorised and regulated by the Financial Conduct Authority under FRN 994238 and operated by Retail Book Limited, registered at 10 Queen Street Place, London EC4R 1AG.

Shareholder Approval Required at General Meeting Scheduled Around 3 August 2026

The retail offer depends on shareholder approval at a general meeting expected on or around 3 August 2026. This resolution is necessary to implement both the retail offer and the broader placing. If not passed, neither the retail offer nor the placing will proceed, and retail applications will not result in share allotments. Admission to trading on the London Stock Exchange is anticipated at 8:00 a.m. on 5 August 2026.

The retail offer’s completion is also conditional on the placing completing successfully, meaning retail investor participation depends on the institutional placing’s success. Investors should be aware of completion risks, including the outcomes of bookbuilding, shareholder voting, and admission processes.

Simultaneous Institutional and South African Placings Complement Retail Offer

Alongside the retail offer, SUPR is conducting a UK institutional placing open to eligible investors and a separate placing targeting qualifying investors in South Africa. Collectively, these are referred to as "the Placing." This multi-faceted capital raise reflects a broad equity issuance strategy, though specific target sizes for each component were not disclosed.

The South African placing suggests an existing shareholder base or investor interest from that region, though the announcement does not elaborate on its rationale or size relative to the UK institutional placing. The total number of new shares issued across the fundraising was not disclosed.

New Shares Rank Equally but Exclude Fourth Quarterly Dividend for FY Ending 30 June 2026

The newly issued shares will be fully paid and rank pari passu with existing shares of £0.01 each, except they will not be entitled to the fourth quarterly dividend for the financial year ending 30 June 2026, due to timing of allotment relative to the dividend record date. This is standard for share issuances of this nature.

Income-focused investors should consider this exclusion in the near term, though new shareholders will be eligible for dividends from subsequent record dates. SUPR distributes income quarterly as a REIT, making dividend payments a key investment feature. The announcement did not disclose the amount of the fourth quarterly dividend.

SUPR’s Business Model: Rental Income from Major UK Supermarket Properties

Supermarket Income REIT plc is a UK-listed REIT focusing on supermarket and grocery properties leased to major UK grocery operators. Its income derives from rental payments under long-term leases, distributed quarterly to shareholders. The acquisitions of the Sainsbury’s and Tesco stores align with this strategy, expanding SUPR’s rental income portfolio.

As a REIT, SUPR must distribute at least 90% of qualifying rental income to maintain tax-advantaged status, underpinning its commitment to regular income distributions. Many investors hold SUPR shares within ISAs or SIPPs for this reason. More information is available at https://supermarketincomereit.com/.

Retail Offer Reflects Commitment to Retail Shareholders and Pre-Emption Group Guidelines

SUPR emphasises its commitment to retail shareholders by conducting the retail offer alongside the institutional placing, aligning with Pre-Emption Group guidelines that recommend offering existing shareholders, including retail investors, the chance to participate proportionately in new share issuances.

By using RetailBook, SUPR facilitates retail participation in a manner accessible to smaller investors. The company reserves the right to scale back or reject applications at its discretion, standard practice to manage demand if oversubscribed.

Investment Risks: Conditional Offer, Market Price Exposure, and Capital Risk

The offer carries risks including its conditional nature, dependent on shareholder approval and placing completion. The retail offer is conducted alongside a live share price, so the final issue price may differ from market prices, introducing pricing uncertainty for applicants.

Investing in SUPR involves capital risk: share values and income can fluctuate due to market and currency movements, and investors may receive less than their original investment. Past performance is not indicative of future results. No prospectus or admission document accompanies this offer; commitments are based solely on this announcement and prior disclosures.