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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 £372.2 million from £296.8 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 £523.5 million from £438.8 million
Pretax profit for the year ended March 31 surged to £89.4 million from £4.5 million a year ago. EPRA earnings rise 35% to £15.7 million from £11.6 million. Rental income grew by 11% to £23.9 million from £21.5 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.
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