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