SCHRODER European Real Estate Investment Trust, which invests in European growth cities and regions, continued its pre-Covid dividend of 1.85 euro cents per share (cps) for the year to September 30, and also declared a special dividend of 1.85 cps.
It also announced yesterday the intention to declare an additional special dividend of about 4.75 cps alongside the next interim results, reflecting the profitable sale and refurbishment of Boulogne-Billancourt (Paris B-B).
Net asset value of €199.5 million (R3.6 billion) or 149.2 cps was slightly lower than €201.8m or 150.9 cps at the same time in 2020. A net asset value total return of 3.2 percent was driven primarily by valuation increases in the industrial and DIY assets, together with the German office portfolio, which was offset by a write down of the Seville exposure to nil. Loan to value was low at 16 percent, net of cash.
Total dividends of 11.87 cps were declared, with 7.12 cps from ordinary dividends. Over €40m, excluding debt, of investment fire-power was available and there was a strong pipeline of acquisition opportunities, positioning the Company for future growth, the company said in a statement yesterday.
The Paris B-B refurbishment was on track to be delivered in the second quarter of 2022 and within cost, with the remaining 50 percent consideration for the refurbishment to be received in instalments over the refurbishment period;
Chairperson Sir Julian Berney said they were well placed to benefit from trends that had accelerated as a result of the pandemic. These include changes in occupier demand, delivering operational excellence and ensuring that sustainability priorities were instilled within the company’s investment process.
Jeff O'Dwyer, fund manager for Schroder Real Estate Investment Management, said that with continued market uncertainty, the company’s exposure to higher growth cities and sectors, coupled with its prudent gearing position and available investment firepower, meant it is well positioned to deliver shareholder value. | Edward West
BUSINESS REPORT