Banking

Schroder REIT dividends up 20% as NAV falls

The interim report showed the trust’s NAV fell to £366m, a price per share of 74.8p, compared to a NAV of £372.2m and a price per share of 75.8p at the end of March.

Dividends paid during the period increased 20% to £7.8m, or 1.60p per share, reflecting dividend cover of 110% based on post-tax earnings

Positive NAV total return performance of 0.8%, reflects a strong income return from the underlying portfolio of 2.8% vs. 1.9% for the MSCI Benchmark index.

Energy crisis boosts global dividends to record Q3 results

Nick Montgomery, fund manager for the trust, said: “Whilst a rising cost of capital will continue to put downward pressure on real estate values and a recession will challenge businesses, our diversified, higher yielding portfolio, robust occupier mix and strong balance sheet should support continued income growth against the volatile and uncertain backdrop.”

Alistair Hughes, chair of the trust’s board, said the company’s portfolio is “well positioned for this more challenging environment”.

The trust has high exposure to sectors and locations experiencing stronger occupational demand, a resilient tenant base, an above-average income yield and a near term pipeline of asset management initiatives to support returns, he said.

Hughes added: “Crucially, we have a long-term, fixed-rate debt profile, with no near-term maturities, which positions us favourably and gives us additional confidence against the uncertain backdrop. Having increased the dividend earlier this year ahead of the pre-pandemic level, we expect the dividend to remain fully covered for the current financial year.”

 

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