Tesco, Britain's biggest retailer, met forecasts with a 13% rise in annual underlying profit to 2.55 billion pounds ($5.1 billion) and doubled the amount of cash it plans to return to shareholders.
Tesco said on Tuesday it expected to return at least 3 billion pounds from property sales to investors, up from 1.5 billion previously.
With private equity firms targeting several of Britain's retailers for possible takeover, in part because of their rich asset base, companies are under pressure to extract value from the big rise in value of commercial properties.
Tesco, facing a growing challenge from supermarket rivals Asda and a resurgent J. Sainsbury, said like-for-like sales in its core UK market, excluding fuel, rose 5.8% in the final quarter of its financial year, which ended on Feb. 24.
This was up from a third-quarter rise of 5.6%.
Tesco shares jumped to a new high of 467-3/4 pence in early trading.