Business
Full Year Results for the year ended 31 March 2020
Full Year Results for the year ended 31 March 2020.
About this update from Schroder Real Estate Investment Trust Ltd
[{"type":"text","content":"\n \n For release 9 June 2020\n \n Schroder Real Estate Investment Trust Limited\n \n (“SREIT”/ the “Company” / “Group”)\n \n FULL YEAR RESULTS FOR THE YEAR ENDED 31 MARCH 2020\n COMPANY WELL POSITIONED WITH STRONG BALANCE SHEET: LONG TERM DEBT, LOW LOAN TO VALUE OF 24% AND CASH FOR FUTURE INVESTMENT\n Schroder Real Estate Investment Trust, the actively managed UK focussed REIT, today announces its audited full year results for the 12 months ended 31 March 2020. \n Balance sheet strength and defensively positioned portfolio\n · £95 million of disposals completed since January 2019 at an average net initial yield of 3.0%.\n · Refinancing of £129.6 million term loan with Canada Life in October 2019 resulted in an annual interest saving of £2.5 million per annum, with term extended to an average of 16.5 years.\n · Sustained real estate portfolio outperformance of +1.7% total return versus the MSCI/IPD Benchmark Index over the past 12 months, +1.7% p.a. over the past 3 years and +1.0% p.a. since IPO in July 2004.\n · 82% of the portfolio located in Winning Cities and Regions.\n · 68% of the portfolio weighted to the office and industrial sectors, with a below Benchmark retail weighting and no shopping centres.\n · Loan to Value (‘LTV’), net of all cash, of 23.7%.\n · Significant headroom to debt and interest cover ratio covenants; the Company could withstand a further valuation fall of 51% and, based on the current tenancy position, a 66% decrease in net rental income.\n · Clear strategy for dealing with Covid-19 related risks, with 74% of rent collected for the quarter commencing 1 April 2020.\n · Dividend due to be paid in June 2020 postponed due to Covid-19 uncertainty with intention to pay in part or in whole at a later stage once there is greater economic clarity.\n Key financial highlights \n · Net Asset Value (‘NAV’) of £309.8 million or 59.7 pps (31 March 2019: £356.4 million or 68.7 pps), reflecting a decrease of -5.4% before one-off debt breakage and related costs linked to the refinancing of £27.4 million, and a decrease -13.1% as a result of the refinancing.\n · Net asset value (‘NAV’) total return for the period to 31 March 2020, adjusted for the refinancing costs, of -1.5%, and -9.4% as a result of the refinancing.\n · Adjusted EPRA earnings of £12.7 million, a decrease of 16% (31 March 2019: £15.2 million), ...