Share Name Share Symbol Market Type Share ISIN Share Description
Schroder Real Estate Investment Trust Limited NEX:SREI.GB NEX Ordinary Share GB00B01HM147
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 55.50p 50.00p 61.00p 55.50p 55.50p 55.50p 0 07:56:02
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
- - - -

Schroder Real Estate Net Asset Value & Dividend-Quarter to 30 June 2019

19/07/2019 7:00am

UK Regulatory (RNS & others)


 
TIDMSREI 
 
For release 19 July 2019 
 
                 Schroder Real Estate Investment Trust Limited 
 
         ANNOUNCEMENT OF NAV AND DIVIDEND FOR QUARTER TO 30 JUNE 2019 
 
Schroder Real Estate Investment Trust (the 'Company' or 'SREIT'), the actively 
managed UK-focused REIT, announces its net asset value ('NAV') and dividend for 
the quarter to 30 June 2019. 
 
Net Asset Value 
 
The unaudited NAV as at 30 June 2019 was GBP355.7 million or 68.6 pence per share 
('pps'). This reflects a decrease of 0.15% per share compared with the NAV as 
at 31 March 2019, or a positive NAV total return, including the dividend paid 
of 0.65 pps, of 0.8%. A breakdown is set out below: 
 
                           GBPm      pps                    Comments 
 
NAV as at 31 March 2019   356.4    68.7 
 
Unrealised valuation      (1.4)   (0.3)   Portfolio decline before capital 
loss on investment                        expenditure and excluding joint ventures 
property                                  and profit on disposal, shown separately 
                                          below. 
 
Unrealised loss in joint  (0.2)     -     Decrease due to capital expenditure at 
ventures                                  City Tower Unit Trust. 
 
Profit on disposal of      1.3     0.3    Relating to the disposal of the Booker 
investment property                       Unit in Acton that exchanged during the 
                                          quarter and completes on 15 November 2019 
                                          at GBP18.9 million.  The GBP1.3 million 
                                          profit on disposal reflects the premium 
                                          over the 31 March independent valuation 
                                          of GBP17.2 million less an adjustment for 
                                          disposals costs and a non-cash lease 
                                          incentive. 
 
Capital expenditure       (0.8)   (0.2)   Includes GBP400,000 in connection with the 
                                          pre-let to JD Sports Gyms at Millshaw 
                                          Industrial Estate in Leeds. 
 
Net revenue                3.6     0.7    Quarterly net revenue reflecting dividend 
                                          cover of 105%, and 102% from recurring 
                                          revenues. 
 
Dividends paid            (3.4)   (0.7)   Reflects the 0.65 pps March 2019 
                                          quarterly dividend paid in June 2019. 
 
Others                     0.2     0.1    Lease incentive adjustments and all other 
                                          items. 
 
NAV as at 30 June 2019    355.7    68.6 
 
Dividend payment 
 
The Company announces an interim dividend of 0.65 pence per share ('pps') for 
the period 1 April 2019 to 30 June 2019. 
 
The dividend payment will be made on 16 August 2019 to shareholders on the 
register as at 2 August 2019. The ex-dividend date will be 1 August 2019. The 
dividend of 0.65 pps will be designated 0.35 pps as an interim property income 
distribution ('PID') and 0.30 pps as an interim ordinary dividend. 
 
Performance versus latest available MSCI Index 
 
Over the quarter to 31 March 2019, the underlying portfolio produced a total 
return of 1% compared with the MSCI Index of 0.4%. For the 12 months to 31 
March 2019 the underlying portfolio produced a total return of 7.2% compared 
with MSCI of 5.2%. 
 
Property portfolio 
 
As at 30 June 2018, the underlying portfolio comprised 43 properties valued at 
GBP461.1 million. At the same date the portfolio produced a rent of GBP26.8 million 
per annum reflecting a net initial yield of 5.4%. The portfolio estimated 
rental value is GBP33 million per annum, resulting in a reversionary yield of 
7.1%. 
 
As at 30 June 2019 the void rate was 8%, calculated as a percentage of rental 
value. The average unexpired lease term, assuming all tenants vacate at the 
earliest opportunity, is 6.1 years. The tables below summarise the portfolio 
information as at 30 June 2019: 
 
Sector weightings                                Weighting % 
 
                                           SREIT         MSCI Index* 
 
Offices                                     36.0             28.7 
 
Industrial                                  32.7             28.6 
 
Retail (including the retail                24.5             31.4 
component of mixed use assets) 
 
Other                                       6.8              11.3 
 
 
 
Regional weightings                              Weighting % 
 
                                           SREIT         MSCI Index* 
 
Central London                              7.9              12.6 
 
South East excluding Central London         22.4             40.3 
 
Rest of South                               6.9              16.3 
 
Midlands and Wales                          29.6             13.7 
 
North and Scotland                          33.2             17.1 
 
*Latest available Index data as at 31 March 2019 
 
Disposals 
 
In May unconditional contracts were exchanged to sell a warehouse let to Booker 
Limited in Acton for GBP18.9 million, which compared with the independent 
valuation as at 31 March 2019 of GBP17.2 million.  The disposal is due to 
complete on 15 November 2019 and the buyer has paid a non-refundable deposit of 
GBP1.89 million. 
 
Since 31 December 2018 SREIT has completed or unconditionally exchanged 
contracts to sell five assets for GBP68.9 million, reflecting an average net 
initial yield of 3.1%.  The disposals are consistent with SREIT's strategy to 
sell lower yielding assets and to realise gains from asset management.  These 
disposals, combined with the recently extended (but undrawn) revolving credit 
facility, provides SREIT with balance sheet capacity approaching GBP100 million 
and therefore valuable operational flexibility. 
 
Asset management 
 
Leeds, Millshaw Industrial Estate 
 
Millshaw Industrial Estate increased in value by 4.3% over the quarter to GBP33 
million as a result of the positive letting activity.  Three new lettings have 
been completed since 31 March 2019, generating GBP291,000 per annum, whilst works 
in connection with the conversion of a 31,000 sq ft warehouse to a JD Sports 
Gym will complete in June. This will trigger completion of a new 10 year lease, 
without tenant break, at a rent of GBP204,750 per annum. 
 
Peterborough, Southgate Way 
 
The 81,121 sq ft distribution warehouse unit increased in value by 26% over the 
quarter to GBP4.8 million.  This followed the exchange of a lease agreement with 
EPD Insulation at a rent of GBP450,000 per annum which compares with the previous 
rent of GBP245,000 per annum.  The lease should complete in August following 
ongoing refurbishment works costing approximately GBP480,000. 
 
Leicester, East Gates 
 
A prime retail unit at Eastgates, Leicester, has been let to Tim Hortons on a 
ten year lease at GBP95,000 per annum.  The letting is subject to planning and a 
landlord capital contribution of GBP80,000.  The contribution should be recovered 
by a dilapidations payment from the outgoing tenant. 
 
Debt 
 
The Company has two loan facilities, a GBP129.6 million term loan with Canada 
Life and a GBP52.5 million revolving credit facility ('RCF') with Royal Bank of 
Scotland.  As at 30 June 2019, the full Canada Life facility and GBP29.0 million 
of the RCF was drawn with an average duration of approximately eight years and 
an average interest cost of 4.2%. 
 
Since the quarter end the RCF has been fully repaid.  Following this repayment 
the Company has cash of GBP27.7 million and unsecured property with a value of GBP 
36.5 million. This results in a loan to value ratio, net of cash, of 
approximately 22%. 
 
                                    -ENDS- 
 
For further information: 
 
Schroder Real Estate Investment Management   020 7658 6000 
Limited: 
Duncan Owen / Nick Montgomery / Frank 
Sanderson 
 
Northern Trust:                              01481 745529 
James Machon 
 
FTI Consulting:                              020 3727 1000 
Dido Laurimore / Richard Gotla 
 
 
 
END 
 

(END) Dow Jones Newswires

July 19, 2019 02:00 ET (06:00 GMT)

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