Schroder Real Estate Investment Trust has swung to a £55m loss after net asset value declined by 20%.
The REIT’s results for the year to the end of March showed a decline in the total portfolio value of £53m to £470.4m, with underlying portfolio returns dipping from 23.5% to -7.9%.
That translated to an IFRS loss for the year of £54.7m, down from last year’s £89m profit.
Fund manager Nick Montgomery said: “Whilst the company’s asset values were impacted by macro-economic headwinds, our diversified portfolio delivered a further increase in the fully covered dividend level, driven by asset management-led rental growth.”
Chair Alastair Hughes added: “There are signs that real estate values are stabilising, and approaching fair value. The attractive portfolio income and pipeline of asset management activity should contribute to continued earnings and dividend growth, further improve the defensive qualities of the portfolio, and enhance returns as the market recovers.”
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