The team at Schroder REIT says demand for space is outstripping supply across multiple sectors, giving “favourable momentum” to its portfolio.
For the six months to 30 September, the REIT recorded a 4% total net asset value return compared with 1.1% a year ago, with NAV up by 1% to £290.7m, driven by estimated rental value growth of 1.7%. It made a profit of £11.7m, more than three times that for the same period in 2023.
Chair Alastair Hughes said: “We have witnessed some yield compression for the first time since June 2022 and, perhaps more importantly, tenant demand outstripping available supply in several sectors, driving rental growth and overall returns. This favourable momentum, combined with our quality portfolio, strategic asset management, cost discipline and low cost of debt, should provide the opportunity for sustained and growing income.”
