Schroder European REIT lifts dividend on rent collection

Schroder European Real Estate Investment Trust has lifted its quarterly dividend as rent collection stabilises across its portfolio. The REIT is increasing its dividend to €1.39 (roughly £1.28), equal to about 75% of its target value before the Covid-19 pandemic. Schroder said the dividend increase came on the back of progress on a redevelopment of an office site in the Paris suburb of Boulogne-Billancourt, prelet to engineering group Alten, as well as improved rent collection. Rent collection over the three months to 30 June and the subsequent period was “stable”, the company said, and stood at about 84% as of mid-September. As of 30 June the company’s net asset value was €178.4m (£164.7m), down by 2.1% from the end of March. The fall was driven by the costs of the Boulogne-Billancourt project, the REIT said, as well as a fall in the valuation of a shopping centre in Seville. Schroder Real Estate Investment Management’s Jeff O’Dwyer said: “Our primary focus remains to deliver and capitalise on the Paris Boulogne-Billancourt refurbishment. Successful completion will have the potential to be accretive to NAV and, subject to disposal, provide an opportunity to further diversify the portfolio and provide a path back to the target dividend.” To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette