Schroder REIT swings back into profit
Schroder Real Estate Investment Trust has joined a growing number of property investors to return to profit in its latest set of results.
The fund house’s UK REIT posted a £33.2m profit for the six months to 30 September, having lost £8.8m at the same point a year ago in the depths of the Covid-19 pandemic.
SREIT’s net asset value rose by 9% to £323.4m, with a NAV total return of 11.3%, versus the MSCI Benchmark Index of 7.7%. The portfolio value rose by almost 17% year-on-year to £464m.
Schroder Real Estate Investment Trust has joined a growing number of property investors to return to profit in its latest set of results.
The fund house’s UK REIT posted a £33.2m profit for the six months to 30 September, having lost £8.8m at the same point a year ago in the depths of the Covid-19 pandemic.
SREIT’s net asset value rose by 9% to £323.4m, with a NAV total return of 11.3%, versus the MSCI Benchmark Index of 7.7%. The portfolio value rose by almost 17% year-on-year to £464m.
Outgoing chairman Lorraine Baldry, who will be replaced next summer by Alastair Hughes, said: “The outlook for the UK real estate market is positive, with economic growth expected to continue, coupled with a supportive interest rate environment.
“While we expect ongoing divergence in returns across the real estate market, with the industrial sector continuing to outperform over the short to medium term, the polarisation experienced over recent years is expected to narrow as more employees are encouraged to return to offices and sentiment continues to improve towards more resilient parts of the retail sector.”
Baldry warned of the impact of further social distancing measures in the event of rising Covid cases. “Supply shortages and rising inflation have also created near-term headwinds that could weigh on activity in the coming months,” she added. “While this could be disruptive to the recovery, low interest rates and an abundance of capital seeking higher-yielding assets should support demand for good-quality real estate.”
The REIT has issued a string of updates across its portfolio in recent weeks, including new lettings at its landmark Manchester office tower (pictured), and yesterday announced its latest acquisition, a £20m portfolio of industrial assets in the North West of England.
Its quarterly dividend increased over the period to 0.675p per share from 0.625p per share.
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Image from Roland Dransfield PR
