Schroder to pay dividend after progress on rent collection
Schroder Real Estate Investment Trust has received 74% of rent for its third quarter and remains in “active dialogue” with tenants to collect it all.
Of rent collected, 91% of office tenants paid along with 78% from industrial, 33% from retail and leisure and 91% from its other tenants.
The REIT is arranging rents to be deferred or waived in return for lease extensions and for rent to be paid monthly rather than quarterly to help boost rent collection.
Schroder Real Estate Investment Trust has received 74% of rent for its third quarter and remains in “active dialogue” with tenants to collect it all.
Of rent collected, 91% of office tenants paid along with 78% from industrial, 33% from retail and leisure and 91% from its other tenants.
The REIT is arranging rents to be deferred or waived in return for lease extensions and for rent to be paid monthly rather than quarterly to help boost rent collection.
As a result of “progress with rent collection and discussions from tenants”, the business has kick-started dividend payouts for the period between 1 April and 30 June, but at a 50% reduction.
The interim dividend will be paid on 14 August and is 0.38575p per share compared to the previous dividend level of 0.7715p. It has been reinstated earlier than anticipated due to “good progress”, the company said.
The REIT’s NAV as of 30 June dipped by 3.4% to £299.3m from £309.8m on 31 March and £10.8m was shaved off its portfolio valuation, which inched down 2.7%.
Schroder also announced a number of lease renewals, bringing in £1.9m per annum for the company.
The BBC extending its lease at the Tun in Edinburgh by five years to October 2021, agreeing to a rent increase, which starts next year, from £195,000 to £225,000. Also at the Tun, the World Wildlife Fund agreed to a 44% rent increase in a rent review and Edinburgh University Press agreed to a 30% rent increase.
At the REIT’s Stacey Bushes Industrial Estate in Milton Keynes, two rent reviews were agreed. The New Factory agreed to a 22% rent increase to £114,751 pa from £94,260, and Blackened Sun Brewing agreed to a 5% rent increase to £14,440 from £13,700.
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