(Alliance News) - Schroder Real Estate Investment Trust Ltd on Tuesday said its property performance topped its benchmark as it hired a former managing director of Janus Henderson as senior independent director.
The total return of its underlying property portfolio was 24% in the financial year ended March 31, topping its MSCI benchmark, which posted 20%. Net asset value per share rose by 25% to 75.8 pence from 60.4p. Total NAV increased to GBP372.2 million from GBP296.8 million.
Schroder Real Estate's income return was 6.3% versus 3.9% for its benchmark. The value of property assets and joint venture assets grew 19% to GBP523.5 million from GBP438.8 million
Pretax profit for the year ended March 31 surged to GBP89.4 million from GBP4.5 million a year ago. EPRA earnings rise 35% to GBP15.7 million from GBP11.6 million. Rental income grew by 11% to GBP23.9 million from GBP21.5 million.
Schroder Real Estate declared an interim dividend for the three months that ended March 31 of 0.795 pence per share for its quarter ended March 31, up from 0.656p a year ago. For all of financial 2022, Schroder Real Estate is paying 2.83p, up from 1.59p the year before.
Regarding the outlook, Chair Lorraine Baldry cautioned: "The strong, post-pandemic recovery in real estate values is likely to slow, given concerns regarding rising inflation and interest rates."
However, she does not expect a situation similar to the global financial crisis at the start of the millennium, as "average real estate yields continue to offer a healthy premium above fixed income investments." Baldry sees her company's portfolio prepared for the potential risk of a decline of capital value due to rising borrowing costs, citing its diversified strategy.
Meanwhile, the London-based trust appointed Priscilla Davies as senior independent director, effective Tuesday. She previously worked as managing director of London-based asset management firm Janus Henderson and is currently chair at UBS Asset Management UK Ltd, part of UBS AG.
Schroder Real Estate shares were 4.6% higher at 56.98p each in London on Tuesday afternoon.
By Tom Budszus; tombudszus@alliancenews.com
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Schroder Real (SREI)