Knight Frank bullish on 2019 supermarket yields

Updated: Jan 7, 2019

KF anticipate yields of 4.25% on index linked grocery stores

SUPR average yield is 4.9%, therefore prediction suggests 13% upside to current valuations

That could be supported by Tesco returning to investment grade (Fitch up-graded Tesco to BBB- in October) and Sainsbury's move to investment grade post merger with ASDA.

Tesco’s strong HY results, continuing strengthening of its balance sheet and now the confidence demonstrated by the bond market, makes it highly likely Moody’s and S&P will upgrade Tesco in 2019.


Read more in the Knight Frank UK Retail Report



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Supermarket Income REIT plc is listed on the London Stock Exchange. SUPR acquires UK supermarket sites that form a key part of the future model of grocery in the United Kingdom. SUPR aims to provide long-term RPI-linked income, from institutional grade tenants and the potential for capital growth through active asset management. Atrato Capital is the Company's Investment Adviser.

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