Schroder European Real Estate Investment Trust PLC on Friday reported it had returned to annual profit as loss from fair value adjustment on investment property waned.

For the financial year that ended September 30, the London and Johannesburg-listed property investor’s pretax profit was €1.3 million, swung from a loss of €10.0 million a year earlier.

Net loss from fair value adjustment on investment property dwindled to €7.7 million from €19.7 million.

Net rental and related income was up 4.9% to €15.0 million, compared to €14.3 million.

Schroder European declared a total dividend of 5.9 euro cents, down 12% from 6.7 cents.

IFRS earnings per share swung to 0.4 cents, from a loss of 7.0 cents, while headline earnings per share rose to 6.1 cents from 6.0 cents.

Net asset value per share was 122.7 cents as at September 30, down 4.3% from 128.2 cents at September 30, and was down 0.7% from 123.6c at March 31.

Schroder European also said the French tax authorities are proceeding with a tax audit. The potential exposure is up to €12.6 million, excluding penalties, it said.

‘Based on professional advice, the board continue to believe that an outflow is not probable, and therefore no provision is recognised,’ the company said.

Non-Executive Director Mark Patterson will step down before the annual general meeting in March 2025.

‘Despite the broader challenges facing smaller REITs, the Company is well positioned, with a differentiated and compelling investment thesis focused on assets with robust property fundamentals in higher growth European cities,’ Schroder European Chair Julian Berney said.

Shares in Schroder European were unchanged at R 16.74 on Friday afternoon in Johannesburg. In London, they were up 1.0% at 68.69 pence on Friday morning.

Copyright 2024 Alliance News Ltd. All Rights Reserved.