Schroder Real Estate Investment Trust has reported a fall in net asset value (NAV) of 13.1% in the year to the end of March 2020.
The group, which owns a diverse portfolio of property across the UK, posted a NAV per share of 59.7p (March 2019: 68.7p).
The decrease reflects an 11.8% drop in the value of its portfolio and a one-off debt refinancing cost during the year. Without the refinancing cost, NAV fell 5.4% in the year.
The company refinanced a £129.6m loan in October 2019 that resulted in an annual interest saving of £2.5m a year and extended the length of the loan to 16.5 years.
The portfolio was valued at £406.2m (March 2019: £460.6m).
Adjusted EPRA earnings fell 16%, primarily due to reduced income following asset disposals. The company paid a dividend of 2,72p per share during the year, which was 90% covered by earnings.
It said the dividend due to be paid in June 2020 has been postponed due to covid-19 uncertainty, but intends to pay it in part or whole at a later stage when there is great economic clarity.
The company collected 74% of rent for the quarter to the end of June.
Schroder REIT’s loan to value (LTV) stood at 23.7% at the end of March 2020, and it said it has significant headroom on its debt covenants. It said it could withstand a further valuation fall of 51% and a 66% fall in net rental income before it breaches any of its covenants.
Operational highlights
The group made 77 new lettings, rent reviews and renewals during the year totalling £6.5m and an additional £1.4m above previous levels.
SREI : Schroder REIT reports 13.1% fall in NAV