Business
Half Yearly Report
Half Yearly Report.
About this update from Schroder Real Estate Investment Trust Ltd
[{"type":"text","content":"\n \nFor release 8 November 2017\n\nSchroder Real Estate Investment Trust Limited\n\n(“SREITâ€/ the “Company†/ “Groupâ€)\n\nHALF YEAR RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2017\n\nFOCUS ON WINNING CITIES AND SUCCESSFUL ASSET MANAGEMENT INITIATIVES DRIVE 10% INCREASE IN EARNINGS GROWTH \n\nSchroder Real Estate Investment Trust, the actively managed UK focussed REIT, today announces its unaudited half year results for the six months ended 30 September 2017.\n\nFinancial highlights for the six months ending 30 September 2017\n\n- Increase in dividend cover to 117% (30 September 2016: 106%)\n\n- Net Asset Value (‘NAV’) of £340.6 million or 65.7 pps, reflecting an increase over the period of 2.5%\n\n- NAV total return, including dividends paid of £6.4 million or 1.24 pps, of 4.5% (30 September 2016: 0.2%)\n\n- 10.3% increase in underlying EPRA earnings to £7.5 million (30 September 2016: £6.8 million)\n\n- Profit for the six months of £14.5 million (30 September 2016: £0.6 million)\n\n- Loan to value (‘LTV’), net of all cash, of 27% (31 March 2017: 29%)\n\nOperational highlights\n\n- Strong focus on Winning Cities and Regions with 92% of the portfolio by value located in higher growth locations (source: Oxford economics)\n\n- 42 separate leasing transactions completed with a reduction in void rate to 5.5% (30 September 2016: 9%)\n\n- Continued outperformance of underlying property portfolio with a total return of 5.2% versus the MSCI Benchmark Index of 4.9% \n\n- Property portfolio performance driven by higher annualised income return of 6.2% compared with the Benchmark of 4.8%. Future performance underpinned by a reversionary yield of 7.2% compared with the Benchmark of 5.9%\n\n- Considering disciplined growth that is accretive to income\n\nCommenting, Lorraine Baldry, Chairman of the Board, said:\n\n“Real estate continues to offer an attractive yield premium compared with other asset classes. This yield premium combined with relatively low debt and development means that demand for good quality, well-located assets should remain strong even as the climate for increasing interest rates evolves. Steps taken across the portfolio to redu...