Schroder REIT’s NAV drops after refinancing

Schroder REIT’s net asset value has fallen by 9.3%, after a refinancing incurred £27.2m in costs. NAV fell to £321m in December 2019, from £354m in September. NAV per share has declined by 1.7% on a like-for-like basis to 62p in December, compared with the previous quarter when adjusted for the refinancing costs. The REIT said the refinancing has generated an immediate interest saving of £2.5m per annum, which will be paid to shareholders as an annualised 19% dividend increase. It will be paid on 13 March this year. Following the refinancing, the company has around £90m of cash and undrawn debt facilities to invest in asset management and new acquisitions. Duncan Owen, global head of Schroder Real Estate, said: “The underlying portfolio has continued to outperform over the 12 months to 31 December 2019 against the benchmark by 2.3%. “We are continuing our active asset management programme and have a robust pipeline of reinvestment opportunities to drive returns and grow net income in a sustainable way.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette