A rising portfolio valuation has helped Schroder European REIT almost quadruple profit year-on-year.
The investment firm posted a profit of €28.4m (£25.6m) for the year to 30 September, up from €7.4m a year ago. The boost to the bottom line was driven by a 10.7% rise in portfolio valuation, at €268.6m. NAV of €201.8m was up by 10.8%.
In a note, analysts at Numis described the REIT’s NAV return of 16.2% as “industry-leading”, adding that the company “delivered an impressive performance… reflecting substantial asset management successes”.
Fund manager Jeff O’Dwyer said: “Despite the challenges presented by Covid-19, significant progress has been made during the reporting period in delivering on the stated strategy… while we continue to deal with small pockets of underperformance in the portfolio, the REIT is extremely well placed as we move into 2021 to deliver further income and capital growth on behalf of shareholders.”
In October the REIT announced a €104m forward funding sale of an office development in Paris to AEW (pictured).
O’Dwyer described that deal in the results announcement as “a transformational transaction” for the business.
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