22nd May 2018 13:19
LONDON (Alliance News) - Schroder Real Estate Investment Trust Ltd said on Tuesday it saw a net asset value increase for its recently ended financial year, as the trust continued its Winning Cities strategy.
For the year to the end of March, Schroder REIT's net asset value increased to GBP353.6 million from GBP332.6 million the year before with a total return of 10.5%, while the net asset value per share grew by 6.4% to 68.2 pence per share.
The property portfolio saw a total return of 11.8%, outperforming the MSCI/IPD benchmark index of 10.7%, and underlying EPRA earnings rose to GBP14.1 million from GBP13.8 million.
The company declared a dividend of 2.48 pence per share, in line with the year before and reflecting a dividend cover of 109%.
For the past few years, the company has adopted an investment strategy focused on 'winning cities' - locations experiencing higher levels of gross domestic product, employment and population growth with diverse local economies.
"The Winning Cities strategy executed over the past few years has increased the company's exposure to higher growth sectors and regions where we expect more sustainable occupational demand. This reflects our long term focus on generating outperformance of the underlying real estate portfolio," said Chairman Lorraine Baldry.
"In a more uncertain environment we expect the company to benefit from the quality and diversification of the underlying portfolio, balance sheet strength and dividend coverage. Looking forward, we will continue to consider opportunities to enhance shareholder returns through disciplined growth. The delivery of the above will enable a sustainable dividend increase in the near term," Baldry added.
Shares in Schroder REIT were up 0.5% at 61.30 pence on Tuesday.
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Schroder Real