At a Glance
- Supermarket Income REIT buys 20 Carrefour stores in France under a direct sale-and-leaseback deal.
- Acquisition funded through existing credit, lifting scale, earnings, and European diversification.
- Long leases with inflation-linked reviews strengthen SUPR’s income visibility and portfolio stability.
Supermarket Income REIT (SUPR), the dual-listed grocery-focused property group led by CEO Rob Abraham, has strengthened its European footprint with a $142.8 million purchase of 20 Carrefour supermarkets in France.
The deal, completed through a direct sale-and-leaseback arrangement, gives SUPR long leases, inflation-linked income, and a stronger position in one of Europe’s largest grocery markets. The acquisition marks another step in the REIT’s strategy to deploy capital into stable, income-producing assets while expanding its presence beyond the U.K.
A strategic sale-and-leaseback deepens French exposure
The supermarkets were acquired through a direct sale-and-leaseback agreement with Carrefour, giving SUPR a fresh set of income-producing assets at a net initial yield of 6.6 percent. The stores, all long-established locations that also support Carrefour’s “Drive” online pickup and fulfilment service, broaden SUPR’s geographic mix and add leases that rise with inflation.
Each store averages about 44,000 square feet and is located in areas with limited competing grocery formats. Rents average €9.70 ($11.27) per square foot, while the assets were bought at roughly €139 ($161.46) per square foot, a level the company says is well below the cost of developing a new store.
The leases carry a weighted average term of 12 years, with a break option at year 10, and include uncapped inflation-linked rent reviews, giving SUPR clearer visibility on future income.
Financed through existing credit, boosting earnings and scale
SUPR funded the acquisition through its unsecured revolving credit facility. Borrowings in euros are capped at 3.5 percent through June 2030, creating a comfortable gap between the rental yield on the assets and the cost of debt. After the deal, the company’s loan-to-value ratio stands at 40 percent.
The purchase is part of SUPR’s broader plan to redeploy capital into income-enhancing assets. The company has now invested the full £200 million ($262.83 million) raised from its April 2025 strategic joint venture with Blue Owl Capital, also at an average yield of 6.6 percent. The JV provides extra management fee income and access to cheaper euro-denominated funding.
With the latest transaction, SUPR now owns 46 Carrefour supermarkets, giving the REIT meaningful scale in France. Once remaining debt capacity is committed to its near-term pipeline, Carrefour-linked properties are expected to make up about 10 percent of total assets.
Portfolio diversification and long-term dividend support
The acquisition strengthens SUPR’s shift toward a more balanced European portfolio, with France becoming a key part of its growth plans alongside the U.K. Locking in long leases with one of Europe’s largest supermarket operators provides added stability for future dividends.
“I am delighted that we have now taken our French exposure to scale through another direct sale and leaseback transaction with Carrefour,” Abraham said. “We continue to recycle capital into earnings-enhancing opportunities that diversify our portfolio and support a fully covered, growing dividend.”
The deal sets SUPR up for stronger cash flow and steadier earnings as the company prepares to pursue additional U.K. opportunities in the coming months.
