**Summary**
Supermarket Income REIT PLC (SUPR) announced a significant expansion of its joint venture (JV) with Blue Owl Capital Managed Funds through a £196 million acquisition of 10 high-performing omnichannel Asda supermarkets in a sale and leaseback transaction. SUPR will contribute £98 million, reflecting its 50% stake in the JV. Additionally, SUPR agreed to transfer five of its existing assets, valued at £232 million (3% above book value), into the JV, pending due diligence. These moves scale the JV to £833 million across 23 assets, enhance earnings per share (EPS), extend the weighted average unexpired lease term (WAULT) to 12 years, and increase management fee income by £0.8 million. The Asda stores, located in prime areas, feature 25-year leases with CPI-linked rent reviews and strong omnichannel capabilities. Post-transaction, SUPR’s exposure to investment-grade tenants will rise to 74%, with Asda representing 8% of its portfolio. The company’s pro-forma loan-to-value (LTV) ratio will be 40%. CEO Rob Abraham highlighted the strategic benefits, including earnings growth and dividend potential, emphasizing SUPR’s focus on mission-critical grocery real estate. SUPR also has £100 million of assets in exclusivity, aiming to close by year-end.