CAPE TOWN – Property markets in the European cities targeted by Schroder European Real Estate Investment Trust performed well in the year to September 30, in spite of weakness in the retail shopping centre sector.
Dividends of 7.4 euro cents (R1.20) were declared, the same as last year, and in line with a 5.5 percent target of annualised yield. The share price on the JSE, where the UK-based company has a secondary listing, fell 4.4 percent to R21.51 by mid-afternoon yesterday.
Schroder fund manager Jeff O’Dwyer, referring to some weaker performing retail assets, said “our limited exposure to under-performing parts of the market and balanced portfolio helps mitigate us against these.”
Alongside the Paris redevelopment and other initiatives to improve income, the ambition for 2020 was to grow via acquisitions in the targeted cities, benefiting from macro trends supporting real estate returns and the company’s local market expertise. Net asset value in the past year was static at €182.1 million or 136.2c per share.
Operational highlights included agreement on a new long-term lease and capex programme at the biggest asset, Boulogne-Biliancourt office in Paris, providing future potential capital value and income upside.