16th Nov 2015 09:41
LONDON (Alliance News) - Schroder Real Estate Investment Trust Ltd on Monday said its pretax profit was lower in the first half due to lower valuation gains and a gain from a property sale not repeating, though its net rental income in the half was broadly flat.
The property trust said its pretax profit for the half to the end of September was GBP23.1 million, compared to a GBP36.0 million profit a year earlier. The lower profit was down to the group booking less valuation gains in the first half on its portfolio and due to a GBP15.0 million gain it made a year earlier on a disposal not repeating. This was partially offset by a valuation gain from its share of joint venture properties.
Net rental income in the half was slightly higher, up to GBP10.8 million from GBP10.4 million. The trust made two acquisitions in the half for a total of GBP54.5 million and its net asset value per share rose to 60.9 pence, up from 57.7p.
"Total returns from UK commercial property are more likely to be driven by income and rental growth. Consequently, we expect markets with sustainable tenant demand and a significant supply and demand imbalance to offer more attractive returns," said Chairman Lorraine Baldry.
Shares in the trust were up 0.7% to 59.905p on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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