Schroder REIT has reported a 2.8% drop in its net asset value (NAV) in half-year results to the end of September 2020.
NAV per share now stands at 58p versus 59.7p at 31 March. The fall was due to a 3.4% decrease in the value of its 39-strong property portfolio during the period, which is now worth £397.8m.
Its retail portfolio was hit hardest, with 10.4% wiped off the value. Industrial and office assets were relatively stable at -0.1% and -0.9% respectively.
EPRA earnings was down 24% on the same period last year to £5.1m as a consequence of unpaid rent during the COVID-19 crisis being written off as bad debt.
Rent collected for the quarter to the end of the year currently totals 86%.
The group does has a relatively strong balance sheet, with £79m of cash and undrawn debt facilities. Its loan to value (LTV) is 25.9%.
Its quarterly dividend was reinstated for the quarter ending June 2020, having temporarily being suspended, at 0.38575p per share. That has been increased by 50% to 0.575p for the quarter to the end of September. This represents 75% of the pre-COVID dividend.
In September, the company launched a share buyback programme and during the period acquired 7.1 million shares for £2.3m, reflecting an average price of 31.6p and an average discount to June 2020 NAV of 45%. This resulted in NAV accretion of 0.7%.
Post period end, it has acquired a further 8.1 million shares for £2.6m, which resulted in NAV accretion of 0.7% based on September NAV.
Operational highlights
During the six months it completed 46 new lettings, rent reviews and renewals, generating £2m of new rent.
SREI : Schroder REIT NAV drops 2.8%