Schroder REIT: UK market is ‘positioned for recovery’

Schroder Real Estate Investment Trust’s net asset value has edged up and its chair said the UK real estate market is “positioned for a recovery”. As of the end of June, the REIT’s NAV stood at £289m, up by 0.5% over the quarter, driven by valuation gains. Including the quarterly dividend, that gives a NAV total return of 2%. The REIT said it had seen strong leasing momentum since April, with 27 new lettings, renewals and rent reviews completed across 278,000 sq ft, generating £2.3m of rent. Chair Alastair Hughes said: “Following a significant correction, there are increasing signs that the UK real estate market is positioned for a recovery in late 2024 and into 2025. Whilst economic growth remains muted, greater political stability, falling interest rate expectations, and resilient occupational markets are stimulating more interest in the sector.”