Schroder REIT sees NAV nudge up

Schroder REIT has reported a 0.7% increase in its net asset value to £356.4m in its latest full-year results. EPRA earnings were £15.2m for the year ended 31 March 2019, up slightly from £14.1m in the previous year, and NAV per share nudged up slightly to 68.7p. However, the value of Schroder REIT’s property and joint ventures fell by more than 3% to £461m. Its portfolio is 68% weighted to office and industrial assets. Profit for the year was also down from £33.8m to £15.9m. This was partly due to £50m of disposals made by the business during the year. Its loan-to-value ratio fell to 22.1%. Schroder also announced it has exchanged contracts to sell a 64,614 sq ft warehouse let to food wholesale provider Booker in Acton, W3, for £18.9m to Valor Real Estate Partners. The disposal is due to complete on 15 November 2019. Duncan Owen, global head of Schroder Real Estate, said: “Successful execution of our strategy over the year has supported a dividend increase in contrast to the real estate market slowdown. It has also further enhanced our flexibility and balance sheet strength against the backdrop of a more uncertain market environment. “Recent disposals have realised profits at the same time as the market is experiencing wider price falls. Reinvestment will target higher income returns than the sales and this will increase net operating income. In the meantime, the company is positioned to explore alternative refinancing strategies which may further increase net operating income. For this reason we believe the company is well placed to deliver on its long-term objectives and to pursue a progressive dividend policy.” To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette