Supermarket Income REIT PLC’s NAV rises as grocery shopping surges during

() said its focus on properties that have omnichannel potential has been validated by the surge in online grocery sales during the pandemic.

Nick Hewson, chairman, said: “The last 12 months have highlighted the critical role of grocery property in the UK’s feed the nation infrastructure.

“Our supermarkets play a key role in supporting the response of the UK grocery sector to the pandemic and as a result we have experienced strong property investor interest in our market and consequently a tightening of yields.

The trust focuses on sites occupied by the UK’s big four major grocery chains and the value of its direct holdings rose by 5.5% in the six months to December 2020 with NAV per share improving to 104p from 101p.

The REIT bought 13 supermarket properties worth £314mln during the latest six months, with a further £177mln invested in the second half of the year so far.

Rental income reflected the growing size of the portfolio and rose 71% to £20.4mln during the first half compared to £11.9mln at 31 December 2019.

“We have a high degree of certainty of income through the Group’s long, upward-only, inflation-linked rental uplifts, leased to tenants with undoubted covenants,” Supermarket Income said in a statement.

“Throughout the COVID-19 crisis this has been borne out as we collected 100% of rents with no defaults, deferrals, or rent reductions.”

The interim dividend rises by 1.7% to 2.93p and the company said it is on track to meet its target 2021 payment of 5.86p.