Business
Market Uncertainty and Strategic Highlights
Market Uncertainty and Strategic Highlights.
About this update from Schroder Real Estate Investment Trust Ltd
[{"type":"text","content":"\n \n For release 19 March 2020\n Schroder Real Estate Investment Trust Limited\n(\"SREIT\"/ the \"Company\" / \"Group\")\n MARKET UNCERTAINTY AND STRATEGIC HIGHLIGHTS\n This is an update due to the market uncertainty relating to COVID-19 (Coronavirus). The Company would like to highlight that against this backdrop its strategy remains robust and unchanged. A significant number of disposals were completed at premium prices last year and the term loan with Canada Life was refinanced and extended in October 2019. The Company is now well positioned and the highlights are as follows:\n \n \n \n Disposals completed\n - £95 million of disposals completed in 2019 at an average net initial yield of 3.0%.\n \n \n Debt refinanced\n - £129.6 million debt refinanced in October 2019 generating an immediate saving of £2.5 million per annum with improved covenant terms and a weighted term of 16.5 years.\n \n \n Increased\n \n \n dividend\n - 19% increase to dividend delivered to shareholders in 2019 at 3.086 pence per share per annum.\n \n \n Robust balance sheet\n \n - low net loan to value of 21% as at 31 December 2019.\n \n \n The Company has a diversified portfolio\n - 39 assets with approximately 300 tenants with a focus on regional offices in Winning Cities and industrial warehousing.\n \n \n Reinvestment capacity of £90 million\n - comprising cash and undrawn debt facilities for future opportunistic reinvestment and income enhancing capital expenditure initiatives. This is post all refinance and sales costs.\n \n The Manager is focused on active management to improve the defensive characteristics of the portfolio. Recent activity with new lettings was announced two weeks ago and further asset management initiatives are ongoing.\n In light of the rapidly evolving situation, all forthcoming RICS independent valuations as at 31 March 2020 will include a statement highlighting Material Valuation Uncertainty - such wording to be applied to all independent valuations at least in the UK. Accordingly, the Company’s Independent Valuers have informed us that that the industry standard wording for our independent valuation as at 31 March 2020 will include a statement highlighting Material Valuation Uncertainty.\n The Company will announce its Full Year results for the year ended 31 March 2020 in May 2020. There will be an event for analysts and in...