(The company issued a correction of NAV total return for the half year and second quarter.)
(Alliance News) - Schroder Real Estate Investment Trust Ltd said Monday its profit fell in the first half of its financial year, reflecting lower valuation gains on investment properties and greater market uncertainty.
The UK-focused trust said its profit for the six months ended September 30 fell to GBP4.6 million from GBP10.6 million in the comparative period a year ago, reflecting lower valuation gains on investment properties.
Net asset value decreased 0.6% to GBP354.3 million, or 68.3 pence per share, on September 30 compared to GBP356.4 million and 69 pence per share on March 31.
The company said its net asset value total return, including dividends paid, was 1.3% in the recent half year, compared to 3.0% in the same period in 2018. For the second quarter along, NAV total return was 0.5%.
Schroder Real Estate said it will pay a dividend of 0.65 pence for the quarter ended September 30, up from 0.62p a year before.
Chair Lorraine Baldry said: "This has been another busy period for the company with a focus on activity that has improved shareholder total returns and strengthened the balance sheet. this should support future returns during a period of greater market uncertainty."
"Whilst the disposals of lower yielding assets will result in a temporary decline in net income prior to reinvestment, the board is comfortable with this approach as the company has approximately GBP90 million of funding to take advantage of more attractively priced investment opportunities supporting the delivery of a fully covered, sustainable and growing dividend policy."
Schroder Real Estate shares were up 1.1% in London at 54.00 pence each on Tuesday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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Schroder Real (SREI)