Very happy with that |
Another dividend increase announced this morning. 2nd quarter in a row.
Schroder Real Estate Investment Trust Limited, the actively managed REIT focused on improving the sustainability performance of buildings to generate higher income and capital growth, announces a further 2% increase to the interim dividend to 0.897 pence per share ('pps') for the period 1 October 2024 to 31 December 2024. This follows the 3% increase in the interim dividend for the prior quarter that was paid in December and further progress with portfolio activity.
The dividend payment will be made on 28 March 2025 to shareholders on the register at the record date of 14 March 2025. The ex-dividend date will be 13 March 2025. |
For interest:
13th February
"Bradley Biggins discusses the trusts' strategy in UK commercial real estate, focusing on interest rates, market conditions, and sustainability improvements to enhance returns." |
??
"Dividend
· Quarterly dividend paid of £4.3 million, or 0.879 pps (30 September 2024: 0.853 pps)
· Quarterly dividend 104% covered by EPRA earnings (30 September 2024: 100%)
· The Company will announce an interim dividend for the period 1 October 2024 to 31 December 2024 on 25 February." |
By and large a positive report and some tasty uplifts on asset mgt activity keeps rental income on an even keel and helps NAV. Only concern I have is they told us 3mths ago they were getting on top of vacancies with a lot in legals but vacancy levels have worsened slightly from 11.2 to 11.6%. Be nice if they explained this but like others never mention tenants who have actualised breaks or expires. Anyhow on a positive the expiry of the Store Street rent free is worth 2.3m that should allow at least a 5% divi increase. |
All good here then |
 4.0% NAV TOTAL RETURN SUPPORTED BY INDUSTRIAL WEIGHTING AND ACTIVE MANAGEMENT
Schroder Real Estate Investment Trust Limited ('SREIT' or the 'Company'), the actively managed REIT focused on improving the sustainability performance of buildings to generate higher income and capital growth, announces its 31 December 2024 net asset value ('NAV'), an asset management update, and further progress selling smaller non-core assets on completion of business plans.
Financial highlights
· NAV total return for the quarter of 4.0% (30 September 2024: 2.0%), reflecting the Company's strongest quarterly performance since June 2022
· NAV increase of 2.5% to £297.8 million or 60.9 pence per share ('pps')
· Annualised dividend yield of 6.9% on 14 February closing share price of 50.6p
· Quarterly EPRA earnings increased 6.7% to £4.5 million, or 1.0 pps
Balance sheet highlights
· Sector-leading debt terms with a weighted average maturity of 8.8 years and interest cost of 3.5% on drawn debt
· Incremental positive fair value benefit of the fixed-rate loan of £18.4 million, which is not reflected in the Company's NAV
· Net loan to value 36.6% (30 September 2024: 37.3%)
Operational highlights
· Quarterly portfolio capital growth of 1.5% (MSCI Benchmark: 0.8%)
· Quarterly portfolio total return of 2.9% (MSCI Benchmark: 2.0%)
· Strong leasing momentum maintained, with 12 deals completed across 223,804 sq ft:
o Two new lettings of vacant units adding £147,000 of rent, 1% ahead of 30 September 2024 independent valuation estimated rental value ('ERV')
o Five lease renewals generating total rent of £328,000, which is £94,000 or 40% ahead of the previous passing level and 3% ahead of 30 September 2024 ERV
o Five rent reviews with a total rent of £1,194,000 which is £287,000 or 32% ahead of the previous passing level
· Progressing sustainability improvement and decarbonisation strategies with significant near-term leasing pipeline, notably at the recently completed industrial refurbishments in Manchester and Swindon, and office refurbishments at Northampton and York, which are expected to further drive income and earnings growth
Dividend
· Quarterly dividend paid of £4.3 million, or 0.879 pps (30 September 2024: 0.853 pps)
· Quarterly dividend 104% covered by EPRA earnings (30 September 2024: 100%)
· The Company will announce an interim dividend for the period 1 October 2024 to 31 December 2024 on 25 February. |
Petee, do you actually do any research! |
For interest: |
Schroders: The investment opportunity in written-off offices -
Schroder Real Estate fund manager Nick Montgomery says that the selloff in non-prime office space over working from home and environmental concerns provides opportunities... |
News regarding Nick Montgomery's promotion to Global Head of Real Estate was announced by Schroders at end of September. Well deserved. He has a very strong team. |
Just had a watch of the Interim results presentation for TR Property and Marcus Mudge has been buying into SREIT . One interesting point is he says the manager has been promoted to run the whole of the Shroeders property unit? A change of manager is likely. Was this reported in the thread, sorry have not been keeping an eye. Anyone have any info? |
Skinny
Thanks for the link to the presentation. The guys do give me confidence that I am in the right place and will continue to re-invest the very good dividends. |
Most % of offices, are let to Universities, so direct office exposure is in reality a lot less than in disclosure. One in Bloomsbury (one of few office growth areas) a great site, near Tottenham Court Road I was there last night area buzzing & right next to Elizabeth line, must be undervalued IMO, also Uxbridge Uni agreed higher rent, can't imagine tenant vacating for a long time as have configured building to their spec, also most courses at Uxbridge in health sector which is comforting. I already hold a large position but will continue to add. |
I found the Q&A interesting so worth listening to again if wanted |
Do you want me to tell you what to do? |
Just wondering whether to buy a few more although willreduce my overall yield a bit.
Just a question of how much warning we’ll get if the business environment actually does suffer from the budget wrt rentals. |
Good to see Stanley Green finally getting close to fully let but taken a while longer than they've been suggesting. Watched the analyst presentation early doors and feel they are a bit too bullish based on a good 6mths but not reflecting that business sentiment is fragile post budget so need to show a bit of caution on any big spend imv.
Anyhow got in when share price was well down so happy holder here. |
Some very interesting info in the full Interim Results including asset management updates on several core properties -
~ H1 NAV total return 4.0%
~ H1 dividends totalling 1.706p, covered 102% by earnings
~ 3% increase in quarterly dividend to 0.879p
~ Long debt maturity profile (9.1yrs) with low average interest cost (3.5%)
~ 89% of debt either fixed or hedged against movements in interest rates
~ "Most of our debt comprises a long-term loan which is the longest dated, lowest cost, debt in the peer group, with a positive fair value not reflected in the Company’s NAV"
~ "The Company intends to partly repay its more expensive revolving credit facility through planned disposals, including a small sale completing post period end, with the objective to bring the net loan to value in line with our long-term target range of 25% to 35%."
~ New shareholders attracted to register, including 24% rise in retail platform shareholders (Hargreaves Lansdown, Interactive Investor and AJ Bell).
~ Size is not everything - "whilst the Company is small compared with the wider REIT universe, this does allow for a forensic concentration on asset management which has been a key driver of the attractive dividend yield premium over the sector average, with significant earnings growth potential." |
NAV increase, dividend increase, rent increase all positive. NAV 59p Conservative excludes gain on loan & reversionary yield 8.5% seems too high by valuer. Good to see one refurbished Swindon unit let, vacancy drops to 8% after period ending lettings. A solid hold at 7% & rising yield. |
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