Strong rent collection sees SREIT outperform

Strong rent collection figures have enabled Schroder Real Estate Investment Trust to increase its quarterly dividend by 9% and outperform the MSCI benchmark. Rent collected for the quarter ending 31 March 2021 currently totals 85% of contracted rents (as at 10 February 2021). Office and industrial rent collection remains strong at 96% and 98% respectively, with retail and leisure rental collection rates at just 54%. Schroder said it was in “active dialogue” with its tenants for all rents due to be paid and expected to recover a significant portion of the outstanding amount. An increase in weighting towards industrial, increasing from 30% to 37% during the three months to 31 December, has enabled Schroder to show resilience during the Covid pandemic. During the final three months of the year its underlying portfolio produced a total return of 1.9% – marginally outperforming the MSCI benchmark of 1.3%. The portfolio’s quarterly income return totalled 1.6%, compared with the benchmark’s 1.1%. For the calendar year 2020, Schroder’s underlying portfolio produced a total return of 0.7% compared with MSCI’s -1.2%. The firm said that it had £40m of cash and undrawn facilities available and that it would use these funds for acquisitions, investment in its existing portfolio and to continue its share buyback programme. To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette