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Schroder European Real Estate Investment Trust PLC on Wednesday improved its interim dividend as its loss shrank on the back of growth in rental income. The London and Johannesburg-listed property investor said pretax loss narrowed sharply to €2.4 million for the first six months that ended March 31 from €8.9 million a year earlier. Over this period, net rental income rose 8.7% to €7.5 million from €6.9 million. Schroder European Real Estate collected 100% of rent due. Underlying EPRA earnings was up 13% to €4.3 million, compared to €3.8 million, primarily due to rental growth that offset the impact of higher interest costs. Finance costs surged 57% to €1.3 million from €809,000. Schroder European Real Estate boosted its interim dividend by 60% to 2.96 euro cents from 1.85 cents. The company said it had completed all near-term refinancing of loans on ‘attractive terms’, with no further debt expiries until June 2026. As at March 31, net asset value per share was down 3.8% to 123.6 euro cents from 128.2 cents, largely driven by continued outward yield movement of the underlying portfolio, meaning lower property prices. Its direct property portfolio’s independent valuation declined 3.1% to €208.1 million. ‘Despite macroeconomic headwinds, the resilience of the portfolio together with local sector specialist teams, has delivered rental growth, largely offsetting the impact of higher interest rates,’ Chair Julian Berney said. Berney said Schroder European Real Estate has the flexibility to grow earnings through exposure to strongly performing assets in higher growth European cities, as well as executing on value-enhancing asset management opportunities. Shares were up 1.6% to 64.20 pence in London early Wednesday. They were up 2.1% to R 15.00 in Johannesburg. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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