(Alliance News) - Schroder European Real Estate Investment Trust PLC on Wednesday restored the payment of its quarterly dividend, driven by an improved outlook and a return to healthy rent collection.
As at March 31, the London and Johannesburg-listed property investor's net asset value per share stood at 147.4 euro cents, up 8.2% from 136.2 cents a year before.
This was as the trust's portfolio value rose 5.1% year-on-year to EUR259.9 million from EUR247.3 million, driven by exposure to the high growth industrial, data centre and grocery sectors.
However pretax profit declined 86% to EUR822,000 in the half year that ended March 31 from EUR5.7 million a year before, driven by a provision of EUR8.2 million for a loan made to a Seville joint venture, while net rental and related income declined 11% to EUR6.3 million from EUR7.1 million.
Schroder European reinstated its quarterly dividend payout to its pre-Covid level of 1.85 euro cents per share. As a result, the trust's total interim dividend is 3.42 cents per share, up 23% from 2.775 cents.
Looking ahead, it plans to pay two further distributions with a target of 4.75 cents per share each, to be declared at the same time as its 2021 financial year results and 2022 interim results are published, expected to be in December 2021 and June 2022 respectively.
The special payouts follow the successful sale of its Boulogne-Billancourt office asset in October last year for EUR104 million.
"Despite operating against a backdrop of local and national lockdowns, the portfolio valuation has remained resilient over the period, underpinned by uplifts across the industrial portfolio, a number of asset management successes and improving and strong rent collection. As a result, we are pleased to be able to reinstate the dividend to the pre-pandemic level, whilst paying two special dividends to reflect the highly successful execution of the Paris sale and reward shareholders who continue to support the company," said Chair Julian Berney.
Shares in Schroder European REIT were up 5.1% at 104.48 pence on Wednesday in London, while its Johannesburg shares were 1.1% higher at ZAR20.01.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Schroder Eur.r (SERE)