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Annual Results

Schroder REIT's FY pretax profit falls

13 June 2016 07:22

Schroder REIT's FY pretax profit has fallen to £36.3m, from £55.1m. Net rental and related income, excluding joint ventures, was £22.2m, from £21.4m.

Chairman Lorraine Baldry said:

"The UK commercial real estate sector should continue to offer attractive returns. As income becomes a larger component of total returns we expect greater polarisation across the market because winning centres and locations will benefit most.

"From this perspective, we believe the Company's portfolio is well positioned due to an above average income return, a low weighting to parts of the retail sector that are expected to underperform and a pipeline of potentially significant income and value enhancing asset management initiatives.

"Successful execution of this strategy would deliver enhanced income and enable the Board to review the dividend pay-out level, although intense focus will be given to the sustainability of this alongside prevailing market conditions."

HIGHLIGHTS:

· Net Asset Value ('NAV') total return of 12.3% (31 March 2015: 24.4%)

· 7.8% increase in NAV per share for the year to 31 March 2016 to 62.2 pps, principally due to a 5.7% increase in the value of the underlying portfolio

· Continued outperformance of underlying property portfolio with a total return of 12.8% versus the MSCI Benchmark Index of 11.1%

· Dividend of 2.48 pps paid resulting in robust dividend cover of 106%, excluding exceptional items

· Profit for the year of £36.3 million (31 March 2015: £54.8 million), reflecting moderating capital growth across the UK real estate market

· EPRA earnings of £13.1 million (31 March 2015: £12.1 million)

· Underlying earnings of 7.0 pence per share ('pps') (31 March 2015: 11.3 pps)

· Loan to value ('LTV'), net of all cash, of 30.0% (31 March 2015: 22.4%)

Story provided by StockMarketWire.com

Related Company: SREI

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