Schroder Real Estate Inv... Share Discussion Threads

[skyship] 26/11/2019 16:41

The 16th October RNS confirms the final cost as £25.8m, ie 5p/share.

That reduces the NAV from 68.3p to 63.3p; and takes the NAV discount at 54p down to 14.7%.

The upside is the f/c dividend increase, which could uprate from 2.6p to 3.1p/share; taking the yield from 4.8% to 5.7%.

Makes the shares fair value and likely to continue in their 53p-58p trading range. A HOLD rather than a BUY would be my assessment.

[essentialinvestor] 26/11/2019 13:25

Can anyone do me a favour and estimate the current NAV post the refriancing
and break fee?. TIA.

[essentialinvestor] 26/11/2019 13:19

They've effectively said so in the statement. Reference to capital
being depressed,oyed in 2020 at more attractive valuations..
Unless I'm misreading what they say.

[sleepy] 26/11/2019 11:09

EI - why do you say that?

[essentialinvestor] 26/11/2019 08:47

The most interesting accept is they appear to be preparing for falling
2020 asset values.

[skinny] 26/11/2019 07:06

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more.....

[colonel a] 08/10/2019 14:42

I guess the thinking is that the current saving of 2.8m per annum is OK.
But in eight years time the cost of money will be higher due to the return of a degree of economic sanity and the effective return will be better.
Jam tomorrow ...

[pimsim] 08/10/2019 14:13

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] 08/10/2019 13:14

Refinancing of Long Term Debt and Dividend Increase -

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).

[killing_time] 08/10/2019 12:27

Great news today,20% div hike :-)

[skinny] 21/5/2019 07:03

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Financial highlights for the 12 months ended 31 March 2019

· 5% dividend increase delivered during the financial year

· Net Asset Value (‘NAV’) of £356.4 million or 68.7 pps, representing an increase of 0.7%

· NAV Total Return of 4.5% (31 March 2018: 10.5%), reflecting the impact of one-off refinancing and acquisition costs

· Adjusted EPRA earnings of £15.2 million (31 March 2018: £14.1 million) which results in dividend cover of 114% (31 March 2018: 109%)

· Profit for the year of £15.9 million (31 March 2018: £33.8 million)

· Extended the term of the loan facility with Canada Life at a lower rate and increased the capacity of the Royal Bank of Scotland revolving credit facility to maximise operational flexibility

· Loan to Value (‘LTV’), net of all cash, reduced to 22.1% (30 September 2018: 29.2%)

Operational highlights

· Sustained outperformance of the real estate portfolio with a total return of 7.2% versus the IPD/MSCI Benchmark Index of 5.2% resulting in annualised outperformance of 2.0% over the past 12 months, 2.5% per annum over the past three years and 1.4% per annum since IPO in July 2004

· Portfolio supported by strong fundamentals with 93% of the portfolio located in Winning Cities

· 68% of the portfolio weighted to the office and industrial sectors (31 March 2018: 63.5%), with no City of London or Shopping Centres

· Three acquisitions during the year of regional offices in Edinburgh and Nottingham, and an adjoining industrial ownership in Milton Keynes totalling £21.85 million, equating to a yield based on contracted rental income of 7%

· Improved rental profile with reversionary income yield of 7.1% compared with the MSCI/IPD Benchmark Index of 5.4%

· £50 million of disposals contracted during the year and post year end at a blended initial income yield of 2.9%, crystallising profits from asset management

· Pipeline of asset management opportunities to capture future rental growth and improve the defensive characteristics across the portfolio

· Undrawn loan facilities and cash provides important operational flexibility

more.....

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[riverman77] 21/3/2019 12:35

Looking good value here after recent dip on 20%+ discount. Rather dull but steady dependable income generator, and decent capital upside as discount narrows back to single digits.

[skinny] 26/2/2019 07:13

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Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, announces that it has completed two new lease agreements at Bedford and Milton Keynes which improve the portfolio’s defensive qualities.

St. John’s Retail Park, Bedford

A lease agreement has been exchanged with TJ Morris Limited (trading as Home Bargains) for a 14,500 sq ft store on a fifteen-year term at £190,000 per annum. This space makes up the balance of the vacant former Homebase where an agreement has already been exchanged with Lidl to lease a 21,630 sq ft store on a fifteen-year term at £335,000 per annum. The lettings are subject to securing planning consent and SREIT delivering a refurbished unit with associated improvements to the car park and wider site at a cost of approximately £3.7 million.

Matalan, Milton Keynes

An agreement has been exchanged with Matalan that extends its current lease by eight years until March 2029, at a new rent of £572,000 per annum. As part of the transaction Carpetright, who currently sublet 8,500 sq ft from Matalan, will become a direct tenant paying £95,000 per annum on a lease until March 2021. The new lease to Matalan is conditional on improvement works to the roof, cladding and car park at a cost of approximately £1 million.

These transactions are part of an active pipeline of retail asset management and realisations. In addition to the previously announced realisation of a retail asset in Portsmouth for £1.6 million, contracts have been exchanged to sell a retail property in Yeovil for £300,000 which is in line with the independent valuation at 31 December 2018. The Company will keep the market updated as further realisations are completed post asset management initiatives.

-ENDS-

[skinny] 18/2/2019 07:04

The unaudited NAV as at 31 December 2018 was £358.6 million or 69.2 pence per share ('pps'). This reflects an increase of 0.25% per share compared with the NAV as at 30 September 2018, or a NAV total return, including the dividend paid of 0.6355 pps, of 1.2%.

MORE.....

[eithin] 17/2/2019 03:13

March dividend announcement ????? 7th. Feb. Last year.

[skinny] 13/11/2018 07:26

DIVIDEND ANNOUNCEMENT

The company announces an interim dividend of 0.6355 pence per share (‘pps’) for the period 1 July 2018 to 30 September 2018. The dividend payment will be made on 5 December 2018 to shareholders on the register as at 23 November 2018. The ex-dividend date will be 22 November 2018.

The dividend of 0.6355 pps will be designated 0.35 pps as an interim property income distribution (‘PID’) and 0.2855 pps as an interim ordinary dividend.

[skinny] 13/11/2018 07:25

HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

REFINANCINGS, ACQUISITIONS AND ASSET MANAGEMENT DRIVE DIVIDEND UPLIFT

Schroder Real Estate Investment Trust, the actively managed UK focussed REIT, today announces its unaudited half year results for the six months ended 30 September 2018.

Highlights

Completed two debt refinancings that reduced interest from 4.4% to 4.0% and the average loan term to approximately nine years
Acquired offices in Edinburgh and Nottingham at a net initial yield of 6.7%, supporting the Company’s strategy to invest in assets with strong fundamentals
5% dividend increase with effect from 1 October 2018
Financial highlights for the six months ended 30 September 2018

Net Asset Value (‘NAV’) of £357.7 million or 69.0 pps, reflecting an increase over the period of 1.2%
NAV total return, including dividends paid, of 3.0% (30 September 2017: 4.5%)
Profit for the six months of £10.6 million (30 September 2017: £14.5 million), including one-off refinancing costs of £3.1 million incurred during the period
Adjusted EPRA earnings of £7.1 million (30 September 2017: £7.5 million)
Dividend cover of 107% (30 September 2017: 117%)
Loan to value (‘LTV’), net of all cash, of 29.2% (31 March 2018: 25.3%)
Property portfolio highlights

Sustained outperformance of real estate portfolio with a total return of 4.5% versus the MSCI/IPD Benchmark Index of 3.8%
95% of the portfolio now located in Winning Cities
Significant asset management initiatives include the new ten-year lease without breaks with BUPA at a rent of £1.09 million per annum, reflecting an uplift of 14%
Letting activity over the period has improved the portfolio void rate to 6.0% (31 March 2018: 7.2%)
Reversionary income yield of 7%, compared with the MSCI Benchmark of 5.6%, supporting income growth over the next 12 to 24 months.
Commenting, Lorraine Baldry, Chairman of the Board, said:

“The UK real estate market has continued to deliver attractive levels of income and total returns despite growing political and economic risk. Looking forward, these risks combined with the late stage in the market cycle means we are more cautious about the outlook and may look to realise some of the capital gains across the portfolio. The Company is well positioned in this environment due to its high quality, diversified portfolio, a high income return, stable balance sheet and potential to enhance income and value from ongoing asset management initiatives.”

Duncan Owen, Global Head of Schroder Real Estate, added:

“In the face of challenges to the UK real estate market presented by current political and economic uncertainty, we will continue to be active managers adopting a disciplined approach. Our broad pipeline of asset management initiatives provide opportunities to add value throughout the cycle. This activity is a mainstay of the Company’s strategic objectives, the delivery of which is intended to sustainably increase net income. We will also sell assets where good performance can be realised and reinvest in opportunities which will generate higher net income.”

-Ends-

[skinny] 09/10/2018 09:00

Property Tour and Notice of Results

Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, will host a property tour for analysts and institutional investors today.

The event will include a presentation by the SREIT management team as well as site visits to key assets in Manchester and Leeds.

The presentation will be made available on the Company’s website (

Notice of Results

The Company confirms that it will announce its Half Year results for the six months ended 30 September 2018 on Tuesday 13 November 2018.

A presentation for analysts and investors will be held on the morning of the results. For details of the meeting, please contact FTI Consulting on the below.

-End-

[skyship] 24/7/2018 13:28

MRF - Incidentally, I like you don't hold here. Not best value as yield only 4% and a 9% discount.

Compare that with so many others. Even the ultra conservative HCFT offers a 4.9% yield and 19% discount; whereas RLE, with a moderately higher LTV, offers a 6.25% yield and 21% discount.

[skyship] 24/7/2018 12:21

SREI's portfolio is 30.1% retail - BUT:

"The retail assets in the portfolio are predominantly well-managed retail warehouses and convenience retail let at sustainable rents and which benefit from trends including 'click and collect'. The Company does not own any Shopping Centres."

What was the reason for your post; or perhaps just mistaken. No problem.

[danieldanj] 09/7/2018 01:02

Schroder RE (SREI) Earnings-Reaction to Keep an Eye

[jombaston] 25/5/2018 19:31

The dividend was 97% covered.
The EPRA earnings was 2.4p. They quote an adjusted figure which doesn't include £1.5m of expenses related to abortive transaction costs. Operational and admin expenses were some 35% of income. I am sure they can improve this but it would be nice if they were more upfron about such things. Work from the back of the report if you want to find the numbers quickest! Don't take my word for it