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(Alliance News) - Schroder European Real Estate Investment Trust PLC said on Tuesday it will pay a special dividend due to exceptional asset management profits from its Paris Boulogne-Billancourt for the 2022 financial year.
The London and Johannesburg-listed property investor reported a 77% surge in pretax profit to EUR16.6 million for the financial year to September 30 from EUR9.4 million in the prior year.
However, income fell to EUR12.6 million, down 3.1% from EUR13.0 million. The group achieved 100% rent collection, excluding the Seville joint-venture interest.
Schroder declared a quarterly dividend of 1.85 euro cents, lifting the total payout for the year to 7.4 cents in line with its target, compared to 7.1 cents previously.
In addition, it declared another special dividend of 9.60 cents, up from 4.75 cents last year.
As at September 30, net asset value per share dropped to 140.8 cents from 149.2 cents, reflecting the payment of the special dividend.
"We are well aware of the ongoing challenges facing global markets but real estate continues to remain attractive relative to other asset classes," Schroder Chair Julian Berney said.
"By having real asset exposure that is diversified, indexed linked and located in strong, liquid cities like Berlin, Hamburg, Stuttgart and Paris, the company is well positioned to deliver on its strategy longer term," Berney said.
About EUR27 million, or 33%, of the company's debt expires next year. The group said "positive" discussions with lenders regarding these loans were taking place.
Looking ahead the company said it had about EUR50 million of firepower to deploy and expect to see an improving pipeline of opportunities over the next six to twelve months that will enable it to further diversify, grow income and strengthen its exposure to growth cities, regions and sectors.
The group admitted that the economic outlook remains challenging, with the eurozone facing a number of headwinds including the energy crisis, inflationary pressures, increasing interest costs
and geopolitical risks.
Shares in Schroder were unchanged at ZAR16.00 on Tuesday morning in Johannesburg. They were down 0.5% at 75.69 pence in London.
By Artwell Dlamini, Alliance News reporter
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