Supermarket Income REIT (SUPR) Investor Presentation summary

Transaction overview

• Board agreed to internalise management from Atrato for £19.7m, with an additional £0.3m for AIFM termination and £0.8m for transition services.

• Internalisation expected to deliver at least £4m annual cost savings, with a five-year payback period.

• Shareholder vote scheduled for 20 March 2025; completion targeted for 25 March 2025.

• Internalisation is considered the highest return capital allocation option, with a 19% yield compared to 9% for buybacks and acquisitions.

Strategic rationale and benefits

• Internalisation aligns management and shareholder interests, simplifies structure, and secures the specialist team.

• New EPRA cost ratio target set at under 9%, among the lowest in the sector.

• Broader investment community interest anticipated, with improved shareholder returns and reduced costs.

• Focus remains on enhancing earnings, dividend cover, and progressing JV and acquisition opportunities.

Financial impact and cost savings

• Pro-forma annual cost savings estimated at £4m, mainly from adviser, AIFM, and administrative fees.

• Investment adviser fees drop from £7.8m to zero; other administrative expenses and office costs also reduced.

• Internalisation based on £20.8m deployment, assuming 3.1% transaction cost and 5.8% debt costs.