Profits on disposals and a net valuation gain of £20m saw pre-tax profit more than double at Schroder Real Estate Investment Trust (SREI) in the year to March. The numbers also received an additional boost as there was no repeat of the £15m swap costs incurred in the previous year.
The trust operates a diverse portfolio of properties covering office, commercial and retail. Disposals and a £67m fundraising helped to finance acquisitions of £125m at an average net initial yield of 6.1 per cent. Over the same period, 10 properties were sold for £74m, at an average income yield of 1.4 per cent. Taken together, these sales represented a £22m, or 42 per cent, premium over the previous year's valuation.
Demand for quality space, notably in the commercial and office sectors, helped underpin rents, with rental income of £27.4m. However, there is also a significant reversionary element on top of this, with an independent valuation suggesting that if all properties were let at the current market rate, that income would rise to £31.2m. Void rates as a percentage of rental value fell from 11.7 per cent a year earlier to 9.2 per cent.
| SCHRODER REAL ESTATE INVESTMENT TRUST (SREI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 61p | MARKET VALUE: | £316m | |
| TOUCH: | 61-61.5p | 12-MONTH HIGH: | 63p | LOW: 52p |
| DIVIDEND YIELD: | 4.1% | TRADING PROPERTIES: | nil | |
| PREMIUM TO NAV: | 6% | NET DEBT: | 27% | |
| INVESTMENT PROPERTIES: | £371m* | |||
| Year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 50.9 | 11.1 | 3.0 | 3.52 |
| 2012 | 50.6 | 12.1 | 3.1 | 3.52 |
| 2013 | 45.1 | -10.8 | -3.0 | 3.52 |
| 2014 | 48.6 | 20.9 | 5.7 | 2.74 |
| 2015 | 57.7 | 55.1 | 11.3 | 2.48 |
| % change | +19 | +164 | +98 | -9 |
Dividends paid quarterly. Fourth-quarter dividend of 0.62p paid on 28 May *Includes £73m in investment and loans in associates and joint ventures | ||||
