Tesco announce IFRS 16 changes

Tesco has revealed the full impact of the new lease accounting standard on their balance sheet.

SUPR view:

IFRS 16 adjustments in line with expectations
Total debt up £10.5bn due to lease liability
Total “lease adjusted” debt increases to £15.8bn or 4x EBITDA
Creates incentive on Tesco to buyback property ie lease interest rate 5.8% v 4.0% bond yields
Tesco is now investment grade on Moody’s metrics (Baa3)
Already IG on Fitch

We manage a unique portfolio

Our handpicked, geographically diverse portfolio is a critical part of the UK’s feed the nation infrastructure. Interactive portfolio map with key statistics and full portfolio download.

Investor Centre

Key shareholder information including latest results and news announcements, share and dividend centre, consensus and research and key events

Strategy

Details of our investment strategy, key characteristics, asset management and market backdrop

Our media hub

Ben Green discusses SUPR’s results on Sky News

The Omnichannel virtuous cycle

Proactive investors: SUPR’s latest results

Play Video about Proactive Investors