Schroder REIT posts lift to earnings
Schroder Real Estate Investment Trust has posted a rise in half-year earnings, its fund manager saying the business should continue to deliver despite a difficult economic backdrop.
For the six months to 30 September, EPRA earnings of £8.6m were 3.6% ahead of a year earlier. NAV was up by 13% year-on-year at £366m. NAV total return stood at 0.8%.
Schroder Real Estate Investment Trust has posted a rise in half-year earnings, its fund manager saying the business should continue to deliver despite a difficult economic backdrop.
For the six months to 30 September, EPRA earnings of £8.6m were 3.6% ahead of a year earlier. NAV was up by 13% year-on-year at £366m. NAV total return stood at 0.8%.
Deals during the half-year included the acquisition of St Ann’s House, a mixed-use office and retail asset in Manchester, for £14.7m; the disposal of an industrial asset at Southlink, Portsmouth for £6.5m; and 33 new lettings, rent reviews and renewals completed.
Fund manager Nick Montgomery said: “Despite a volatile and uncertain economic backdrop, good progress has been achieved over the period delivering on the strategy, resulting in a positive NAV total return, sustained outperformance of the underlying portfolio and a further increase in the dividend level, which is fully covered.
“While a rising cost of capital will continue to put downward pressure on real estate values and a recession will challenge businesses, our diversified, higher yielding portfolio, robust occupier mix and strong balance sheet should support continued income growth against the volatile and uncertain backdrop.”
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