Schroder European REIT boosts logistics exposure to 20%

Schroder European REIT has increased its portfolio’s exposure to the logistics sector. In its full-year results for the year ended 30 September, the firm said 20% of its portfolio was now in logistics, up from 13% a year ago. The increase follows the purchase of a French logistics asset for €18.2m (£15.3m). The firm’s net asset value held steady during the year, unchanged at €182.1m. Profit for the year was €7.4m, down from €13.2m, reflecting lower valuation gains on investment properties. NAV total return fell to 4.1%, down from 7.5%, reflecting the impact of acquisition costs and one-off tax restructuring costs. Jeff O’Dwyer, fund manager for Schroder Real Estate Investment Management, said: “Property markets in our target cities are performing well. While there are pockets of weakness, such as in the retail shopping centre sector, our limited exposure to underperforming parts of the market and balanced portfolio helps mitigate us against these. Alongside progressing the Paris redevelopment and other initiatives to further improve our income profile, the ambition for 2020 is that we will grow the portfolio via new acquisitions in our target winning cities.” In Paris, the firm has signed a conditional agreement for a long-term lease with existing tenant Alten at the firm’s office investment Boulogne-Billancourt, in return for a comprehensive refurbishment of the building, which is expected to start in mid-2020. The firm said this had the potential “to deliver both NAV return upside and improve the longer-term income and portfolio profile”. To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette