Schroder Real Estate Inv... Dividends - SREI

Schroder Real Estate Inv... Dividends - SREI

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Schroder Real Estate Investment Trust Limited SREI London Ordinary Share GB00B01HM147 ORD SHS NPV
  Price Change Price Change % Stock Price High Price Low Price Open Price Close Price Last Trade
  0.00 0.0% 56.80 57.00 56.00 56.00 56.80 16:35:04
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Industry Sector

Schroder Real Estate Inv... SREI Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

pimsim: I suspect the share price is reacting more to this bit: "The refinancing has resulted in a negotiated break cost of approximately GBP28 million, equating to a reduction in the NAV per share of 5.5 pence." So they have paid GBP28m up front as a break clause on the existing loan in order to refinance at a lower rate which saves GBP2.8m per year in future interest payments for the next 16.5 years. On a NPV basis that doesn't look particularly great.
speedsgh: Refinancing of Long Term Debt and Dividend Increase - HTTPS:// The announcement hasn't been of much help to the share price yet! "This activity resulted in the Board increasing the Company�s dividend by 5% in the financial year to March 2019." Hmmm. Full yr dividend for year to March 2019 was 2.5555p (year to March 2018: 2.48p) which represents an increase of 3.04%. TOTAL FY ended 31/3/2019 - 2.5555p 4th interim (Jun 19) - 0.65p (PID 0.35p; non-PID 0.30p) 3rd interim (Mar 19) - 0.65p (PID 0.35p; non-PID 0.30p) 2nd interim (Dec 18) - 0.6355p (PID 0.35p; non-PID 0.2855p) 1st interim (Aug 18) - 0.62p (PID 0.35p; non-PID 0.27p) ------------------------------------------------------------------ TOTAL FY ended 31/3/2018 - 2.48p 4th interim (May 18) - 0.62p (PID 0.35p; non-PID 0.27p) 3rd interim (Mar 18) - 0.62p (PID 0.35p; non-PID 0.27p) 2nd interim (Dec 17) - 0.62p (PID 0.35p; non-PID 0.27p) 1st interim (Aug 17) - 0.62p (PID 0.35p; non-PID 0.27p) However I suspect what they mean is that the quarterly payment rose by 5% over the course of the year to March 2019 from 0.62p to 0.65p. If so, one assumes that they now mean that the "increase of approximately 20%" is to the quarterly payment which means that it should rise to 0.78p per qtr which equates to 3.12p per annum (forward yield of 5.8% based on current offer of 53.6p).
asmodeus: Supposing you get dividends of £100 a year. If the share price rises by £500 you can take the profit and (assuming you are within your allowance) and, less charges, that is the equivalent of 5 years dividends - and tax-free!
novision: This continuing share price increase is knackering the yield. ;-)
skinny: Annual Results Financial Highlights · Net Asset Value of 45.1 pence per share ('pps') (31 March 2012: 50.6 pps) · EPRA earnings of 2.1 pps (31 March 2012: 1.6 pps) · Loss before tax of £10.8 million (31 March 2012 profit before tax: £12.1 million) · Dividend declared and paid of 3.52 pps for the 12 months to 31 March 2013 (31 March 2012: 3.52 pps) · Share price total return of 33.2% Operational Highlights · Disposal of seven properties for £67 million reflecting a 6% average premium compared to the valuations as at 31 March 2012, with proceeds used to pay down £59 million of securitised debt · On 16 April 2013 a new £129.6 million long term loan facility was concluded with Canada Life allowing repayment of the remaining £114.5 million securitised loan in full that matured in July 2014 · The new loan is at a total margin of 4.77% compared with the securitised loan margin of 5.72%, generating a saving in interest and related costs of approximately £0.8 million per annum · Dividend revised to a more sustainable level of 0.62 pence per share per quarter, which, together with the refinancing, puts the Company on a solid platform to take advantage of future opportunities
redsonning: There continues to be some misunderstanding about this company. Those who think that this SREI is not as strong as they thought it was are missing some of the point. The company has reorganised a great deal over the last year and, as a result, is now well positioned. It's new debt arrangement is amongst the best now in place at any property company. It's dividend has been set at a low level in order to allow it to strengthen its position further over the next year or two. Its high level of voids is now a significant opportunity compared with those which have lower voids. Additionally it has the potential from the eventual successful planning applications at Reynards Park and at Hinkley. Much of this is simply a matter of time to transpire, given good management, and it is clear that it now has that good management. These factors continue to support the price at which the shares trade. A company which overpays dividends is inherently weaker than one which does not, and this weakness has now been corrected. Similarly the recovery in the share price of the combined IPT-IRP (now FCRE) following the merger and dividend reduction was essentially for that same reason.
redsonning: Yes, I was effectively saying that one can expect a dividend adjustment downwards. That will improve the company's position still further. The market will react positively to that, since this stock is not really rated by it's dividend percentage, but by a combination of factors which is presently improving (and will be improved still further by a dividend reduction). Whilst I don't disagree that the NAV discount has firmed up considerably, that is simply a reflection of the overall mix of improving parameters. The share price may not have much upside in the near future, but neither does it have much downside potential, and a dividend reduction will not change that analysis.
redsonning: The new financing is excellent news for the company, which is why the shares are starting to rise. It is not logical to suggest that the share price is over valued following this significant improvement in the company's loan arrangement. The share price is most certainly not driven by the dividend (which is indeed somewhat high). We have seen this in the recent examples of Picton (when the share price rose following a reduction in the dividend, and in the IRP/IPT situation where the same thing is in the process of happening. In property stocks the decision about the level of dividend is simply a balance between taking cash now and leaving enough for the company to develop it's property portfolio further. Hence when the balance is wrong (for example when the dividend is too high) the company finds it's share price being negatively affected since the market fears future NAV decline. Putting that situation right allows the share price to return to its underlying value level.
skyship: Re-reading last week's IMS, when for the first time they hinted at a possible rebasing of the dividend (see below) with a view to: "ensuring the Company can deliver a sustainable level of cover whilst having due regard to current and anticipated future market conditions, rental values and the outcome of any future debt refinancing." I suspect they will rebase at the next IMS in April, or earlier associated with the refinancing. A 3p dividend (versus 3.52p) would reduce the yield from 9.3% to 7.95% at 37.75p. That would only save £1.85m/annum; so they could take it back to 2.5p/annum for a saving of £3.63m/annum and a yield of 6.6%. Too much uncertainty to sustain the current share price; so IMO a drift looks pretty inevitable until they can make serious inroads into those voids. ========================================================== Dividend The Company announces an interim dividend of 0.88 pps for the period 1 October 2012 to 31 December 2012. The dividend payment will be made on 22 February 2013 to shareholders on the register on 8 February 2013. The ex-dividend date will be 6 February 2013. Pre-tax dividend cover over the quarter to 31 December 2012 was 69% which compared with pre-tax dividend cover of 60% for the nine months to 30 September 2012. The Board continues to keep dividend policy under close review with a view to ensuring the Company can deliver a sustainable level of cover whilst having due regard to current and anticipated future market conditions, rental values and the outcome of any future debt refinancing. ==========================================================
redsonning: I share your general sentiments Sky. With SREI it's the dividend cover which is the problem, and indeed it's not clear that the discount is so huge. On the other hand the new managers have been primarily concerned with turning properties back into cash and then paying down debt. They perceive that the refunding negotiations will be more favourable this way, and they may well be right. However, this will almost certainly mean no substantial improvement in dividend coverage for some longish time. There is however no intrisic reason why a circa £165m property company cannot expect to pay a £12.5m dividend in the longer term if it gets voids down to 5% instead of near 12% as now. But given those funding pressures and the scarcity of renters right now my guess is that we will indeed see some kind of cut in the dividend at some stage in order to provide financial flexibility (as with the PCTN situation). However, I do not expect a dividend cut (at the present parameters) would push down the share price, since once the dividend is cut the NAV discount will indeed start to look much more attractive.
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