Schroders REIT has said that as the market is late cycle the company is taking a more cautious view and looking to realise capital gains “across the portfolio”.
In her chairman’s statement in the company’s half-year results, Lorraine Baldry 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.”
She did however add: “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.”
In the six months to 30 September the company did not undertake any sales and made £22.4m of acquisitions, but this appears likely to reverse. During the period it also saw its net asset value increase by 1.2% to £357.7m.
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