Schroder Real Estate Investment Trust has published its results for the year that ended 31 March 2014. Over the year the net asset value total return was 14.4%. The capital value of the underlying properties appreciated by 6.3% and, including income, the property portfolio generated a return of 13.7% – ahead of the IPD benchmark return of 12.5%. Over the quarter that ended 30 June 2014 the net asset value climbed to 50.7p per share – as the capital value of the portfolio increased by a further 3.4%.
The loan to value ratio has been falling – it was 37.8% at the end of March (down from 39% in April 2013) and had fallen to 31% by the end of June. Shareholders have been supporting a series of capital raises, providing funds to expand the portfolio and helping to bring down the fund’s leverage.
The dividend fell from 3.52p to 2.74p – this had been flagged in April 2013. The manager says the dividend is now close to being covered by earnings.