19th Nov 2013 11:58
LONDON (Alliance News) - Schroder Real Estate Investment Trust Limited Tuesday reported a slight increase in net asset value per share over the course of the half year, while the chairman and investment manager said there is reason to gradually increase the size of the portfolio in order to achieve improved liquidity and economies of scale.
However, Chairman Andrew Sykes said the company will only pursue growth options which are not dilutive to shareholders. If the company tries to raise equity, it will invest the proceeds in assets which offer an "attractive" income and the potential for income and capital growth.
Net asset value rose to GBP161.6 million on September 30, compared to GBP160.5 million on March 31, which saw net asset value per share increasing to 45.4 pence from 45.1 pence over the same period.
NAV total return was 4.1% over the six months.
Schroder Real Estate cuts its interim dividend to 1.5 pence per share from 1.8 pence in 2012.
Commenting on the decision, the trust said: "Following the completion of the refinancing the board was in a position to complete its review of the longer term sustainability of the company's dividend, taking account of market conditions, future capital requirements and property specific factors. Following this review the board rebased the level of dividend to 0.62 pence per share per quarter, a reduction of 30%, which took effect from the quarter ending June. This meant that over the period the company paid two quarterly dividends of 0.88 pence per share and 0.62 pence per share respectively."
The trust said it is trying to improve its dividend cover, which currently stands at 68%. The trust wants to achieve full dividend cover by letting more property or by investing more cash. European Public Real Estate Association (EPRA) earnings per share were 1.0 pence per share, unchanged from a year before.
The trust's shares were Tuesday quoted at 48.00 pence, down 0.5%.
By Samuel Agini; [email protected]; @samuelagini
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