16th Nov 2022 12:55
(Alliance News) - Schroder Real Estate Investment Trust Ltd said on Wednesday its net asset value fell amid an uncertain economic backdrop, detailing risks from a recession and rising capital costs pressuring real estate values.
The London-based real estate firm said its NAV per share fell by 1.3% to 74.8 at September 30 from 75.8 pence at March 31.
The fund said "rising interest rates and tighter fiscal policy are squeezing household real disposable incomes and will reduce business investment, leading to weaker GDP growth and an increased risk of a prolonged recession."
Its underlying portfolio income return was 2.8%, a better performance than the MSCI Benchmark Index, its benchmark, which added 1.9%.
It announced a quarterly dividend of 0.80p per share. The fund has paid GBP7.8 million in dividends this quarter, 20% more than last year.
Schroder said it collected 98% of rent during the six months that ended September 30, while it maintained its long term debt maturity profile of 11.2 years at an average interest cost of 2.7%.
This included 91% of drawn debt being capped or at a fixed rate.
Shares in Schroder Real Estate increased by 2.3% to 46.55 pence in London on Wednesday midday.
By Greg Rosenvinge; [email protected]
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