Schroder Real Estate Invest (LON:SREI) Issues Earnings Results

Schroder Real Estate Invest (LON:SREI) released its quarterly earnings results on Friday. The real estate investment trust reported GBX 2.90 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Schroder Real Estate Invest had a return on equity of 9.81% and a net margin of 80.90%.

Here are the key takeaways from Schroder Real Estate Invest’s conference call:

• The trust said it remains well-positioned thanks to a high income return, a strong reversionary profile and low fixed debt costs, with about 75% of borrowings fixed at 2.5% for roughly 10 years.
• Dividend payments increased 4% year on year, and management reiterated its commitment to a progressive dividend policy as portfolio reversion and lease completions support future earnings.
• Portfolio performance was modestly weaker over the year, with NAV down 1.1% and a NAV total return just under 5%, while the void rate fell below 10% to a three-year low.
• Asset management activity was strong, including more than 70 lease transactions, six asset sales, and major letting progress at industrial properties such as Stanley Green and Millshaw Park, which management says should lift income and reduce vacancies.
• Management argued the proposed Picton transaction would be earnings accretive, improve scale and diversification, and lower costs through fee savings and a fee holiday, helping support earnings and dividend growth.

Schroder Real Estate Invest Trading Down 0.4%

Schroder Real Estate Invest stock traded down GBX 0.20 during mid-day trading on Friday, hitting GBX 46. 1,699,029 shares of the company’s stock were exchanged, compared to its average volume of 2,584,133. The stock has a market cap of £224.99 million, a P/E ratio of 7.67 and a beta of 0.54. The stock has a 50 day moving average of GBX 46.99 and a two-hundred day moving average of GBX 50.82. Schroder Real Estate Invest has a 1-year low of GBX 44.65 and a 1-year high of GBX 59.09.

Schroder Real Estate Invest Company Profile

The investment objective of Schroder Real Estate Investment Trust (‘the Company’) is to provide shareholders with an attractive level of income together with the potential for income and capital growth as a result of its investments in, and active management of, a diversified portfolio of UK commercial real estate.