Schroder Real Estate Investment Trust PLC on Thursday said it remains optimistic in its long-term prospects despite a weaker performance in its most recent financial year.
The Guernsey-registered REIT operates a green investment strategy focused on transforming the environmental performance of properties in its portfolio.
For the financial year that ended March 31, the trust achieved a net asset value total return of 1.1% compared to negative 15% the previous year.
NAV on March 31 was 58.80 pence per share, down 4.4% from 61.50p a year before. This was attributed to a 2.8% decline in underlying portfolio value compared to the MSCI benchmark which fell 5.7% over the same period.
A final dividend of 0.853p per share was declared, up 2.0% from 0.836p, meaning the total dividend increased 3.7% to 3.34p from 3.22p.
Fund Manager Nick Montgomery commented: ‘The company’s balance sheet strength has provided a robust foundation to deliver further dividend growth, underpinned by our asset management expertise and ability to capture reversion.
‘We have identified a pipeline of sustainability-led initiatives across our portfolio, which benefits from a diverse mix of occupiers making it more resilient through the cycle, providing further protection to earnings, meaning the company is well positioned to continue providing a progressive dividend.’
Looking ahead, Schroder REIT expects to benefit long-term from its sustainable investing strategy as well as its exposure to higher growth sectors.
Schroder REIT shares were up 1.5% to 44.04 pence each in London on Thursday morning
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