Schroder Real Estate Investment Trust has posted a 4.2% hike in net asset value to £168.5m, or 47.3p a share, in its interim results.
The major driver behind the increase was a £9m rise in the value of the listed trust’s 52-strong direct portfolio to £279.6m in the three months to the end of December, although the value of its joint venture properties fell by £400,000.
The direct property portfolio produces rent of £19m pa which, reflecting a net initial yield of 6.4%. The portfolio’s rental value is £21.6m pa – a reversionary yield of 7.3%.
Following letting and lease restructuring activity over the quarter the trust secured additional fixed rental uplifts of £1.8m pa due by December 2015.
Its void rate reduced to 12.5% from 13% over the quarter, with the potential for a further reduction to approximately 11% based on lettings under offer or conditional exchange.
SREIT’s portfolio produced a total return of 3.6% compared with 2.5% for the IPD peer group Quarterly Version of Balanced Monthly Index Funds on a like-for-like basis.
During the period SREIT completed the placing of 36m new raising gross proceeds of approximately £17.2m. The shares represented 10% of the issued ordinary share capital of the company prior to the placing.
Following the successful conclusion of the placing, SREIT exchanged contracts to acquire the Arndale Centre in Headingley for £16.2m, which subsequently completed on 15 January 2014.
It said that further transactions are under consideration in line with its strategy to use its “solid platform… to potentially enhance returns to shareholders through a gradual increase in size”.
bridget.o’connell@estatesgazette.com
