LONDON (ShareCast) - (Sharecast News) - Grocery real estate investor Supermarket Income REIT delivered a "resilient" financial performance in its first half, with a double-digit increase in rental income, and said property valuations have troughed.
Annualised passing rents totalled £118.5m in the six months to 31 December, up 13% on the year before, while adjusted earnings per share rose 3% to 3.0p.

The company declared an interim dividend of 3.1p, up 1% on the year before, with the dividend cover rising to 0.99x from 0.97x.

The valuation of its portfolio improved by 3% over the six-month period to £1.83bn, reflecting a net initial yield of 6.0%, up from 5.9% at the end of June.

The company said that supermarket property valuations have troughed with recent valuations increasing, and the positive impact of post-period lease renewals and capital recycling will be fully reflecting in full-year results.

Chair Nick Hewson said the company has made progress on a number of strategic initiatives designed to enhance earnings and close the discount to net asset value.

"We have already delivered on a number of these objectives with the sale of Tesco, Newmarket above book value, the renewals of our three shortest lease assets at rental levels materially ahead of our valuer's ERVs, and the acquisition of earnings enhancing assets in the UK and France," he said.

Shares were up 1.1% at 73.88p by 0844 GMT.

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