LONDON - Schroder Real Estate Investment Trust Limited (SREIT) has announced its interim results for the six months ending September 30, 2024, highlighting a positive trajectory in net asset value (NAV), dividend growth, and portfolio performance. The NAV of SREIT increased by 1.0% to $290.7 million, or 59.4 pence per share, driven by estimated rental value (ERV) growth of 1.7%.
The company reported dividends of £8.3 million, or 1.71 pence per share, which were 102% covered by European Public Real Estate Association (EPRA) earnings. This marks an increase from the previous year's £8.2 million, or 1.67 pence per share. SREIT also noted a positive NAV total return of 4.0%, a significant rise from the 1.1% reported in the same period last year.
A sector-leading debt profile was cited as a key factor in the company's earnings growth, with a long debt maturity profile of 9.1 years and a low average interest cost of 3.5%. The firm has also secured 89% of its debt against interest rate fluctuations.
The trust declared a further 3% increase in the quarterly dividend to 0.879 pence per share for the quarter ended September 30, 2024, scheduled for payment in December 2024.
SREIT's active management approach and increased allocation to higher growth sectors have been credited with delivering continued rental growth and sustained long-term outperformance against the MSCI Benchmark. The company has achieved a 10-year risk-adjusted relative return of 8.45% per annum to December 31, 2023, recognized at the MSCI UK and European Property Investment Awards 2023.
The portfolio's valuation increased by 0.9% to £465.5 million, and the company completed 45 new lettings, rent reviews, and renewals, totaling £4.8 million in annualized rental income. Following the reporting period, SREIT also completed a £1.475 million disposal of a non-core office asset in Bedford, 23% above its book value as of September 30, 2024.
SREIT has continued to advance its sustainability strategy, retaining a Gold award for reporting under the EPRA Sustainability Best Practice Recommendations for the seventh consecutive year and maintaining a GRESB score of 79 out of 100.
Chair Alastair Hughes commented on the favorable momentum driven by yield compression and strong tenant demand, while Fund Manager Nick Montgomery highlighted the period's positive financial and operational performance, which has facilitated another dividend increase.
The company's performance is based on a press release statement and reflects its financial and operational achievements during the first half of the fiscal year ending September 30, 2024.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.