Schroders’ UK real estate trust has swung to a half-year loss on a drop in its portfolio valuation.
Schroder REIT posted a loss of £8.8m for the six months to 30 September, compared to a profit of £4.6m a year ago. Net asset value was down by 2.8% to £296.8m and NAV total return was -2.2%.
The REIT pinned the loss on a fall in valuations – its portfolio fell to £397.8m, a like-for-like decrease of 3.4% led by a 10% fall in the value of retail assets.
The company ended the period with £79m in cash and undrawn credit lines. It has restarted its share buyback programme and has reinstated its dividend.
Duncan Owen, global head of real estate at Schroders, said: “The portfolio performance remains good despite operating against a highly uncertain backdrop.
“A number of strategic initiatives were completed in 2019, notably the disposal of £95m of assets and the refinancing of the company’s long-term debt to reduce interest cost. This resulted in a strong balance sheet and a diversified portfolio with an emphasis on sectors most likely to benefit from an economic recovery. We are now focused on the disciplined use of capital via acquisitions and share repurchases to drive shareholder returns.”
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