Schroder REIT to explore more share buybacks as trading improves
Schroder REIT has said it will review the potential for further share buybacks in the future, as it reported improved NAV per share and rental income figures.
The landlord held a share buyback last year in which 27.1m shares were acquired for £9.5m. This has allowed it to reinstate dividends totalling £8m in the year ending March.
The board said it would consider further buybacks, depending on share price movements and alternative uses for its investment capacity.
Schroder REIT has said it will review the potential for further share buybacks in the future, as it reported improved NAV per share and rental income figures.
The landlord held a share buyback last year in which 27.1m shares were acquired for £9.5m. This has allowed it to reinstate dividends totalling £8m in the year ending March.
The board said it would consider further buybacks, depending on share price movements and alternative uses for its investment capacity.
Net asset value per share grew by 1.2% to 60.4p at the end of March, compared with 59.7p in the previous year. Annualised rental income has risen to £28.3m, from £24.9m, while the portfolio’s vacancy rate has reduced to 4.8%, from 7.3%.
However overall EPRA earnings were down by 9% to £11.6m. The REIT said this reflected the impact of the pandemic on rent collection rates and a “prudent approach to recognising bad debts”.
The value of the REIT’s portfolio and joint ventures has risen to £438.8m, from £406.2m in 2020.
The REIT made a profit of £4.5m for the year, up from a loss of £32.5m.
Loan-to-value ratio, net of cash, has increased to 32.3%, from 23.7% last year.
Fund manager Nick Montgomery said the pandemic “has provided an opportunity to reassess the strategy in light of the acceleration in structural changes and emerging occupier trends”.
As such, the REIT will focus on four areas: ESG, a “hospitality mindset and operational excellence”, reinvestment into larger assets for more sustainable income and total returns, and investment “across all parts” of the UK market.
Lorraine Baldry, chairman of the board, said: “Whilst the recovery from the pandemic will be uneven and have a differential impact on sectors within the economy, the board and manager expect the company to build on the resilience of the past year, underpinned by its strong balance sheet, exposure to higher-growth assets and balance sheet capacity to invest and deliver attractive returns.”
To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews
