Schroder Real Estate Investment Trust has reported a 7.8% increase in net asset value to £322.6m in its final year results.
Profit for the year to 31 March 2016 was down by 33.8% to £36.3m, which Schroder said reflected “moderating capital growth” across the UK property market.
The REIT reported a 7.8% increase in NAV per share, which it said was principally due to a 5.7% increase in the value of the underlying portfolio.
Over the year, the REIT bought two assets, an industrial estate in Leeds and a retail park in Bedford totalling £54.5m, which had an above-average net initial yield of 6.8%.
It also sold five smaller, lower-yielding assets (including three since the year-end) totalling £15.2m, reflecting an average yield of 3.4%.
Duncan Owen, global head of Schroder Real Estate Investment Management, said the REIT’s strategy was to focus investment on higher-growth locations, which has increased the portfolio’s reversionary potential.
He added: “Active management to realise the opportunities in the assets, a diversified portfolio and a robust balance sheet means the company is well positioned to manage both future shocks as well as to capture rental growth.”
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